Rapid7 (NASDAQ:RPD) Given “Neutral” Rating at UBS Group

Rapid7 (NASDAQ:RPD)‘s stock had its “neutral” rating reissued by research analysts at UBS Group in a report released on Wednesday. They presently have a $9.00 price objective on the technology company’s stock. UBS Group’s price target suggests a potential downside of 13.38% from the stock’s current price.

Several other brokerages have also recently weighed in on RPD. Mizuho decreased their price target on Rapid7 from $16.00 to $12.00 and set a “neutral” rating on the stock in a research report on Wednesday. Canaccord Genuity Group set a $10.00 target price on shares of Rapid7 and gave the stock a “hold” rating in a report on Wednesday. Zacks Research downgraded shares of Rapid7 from a “strong-buy” rating to a “hold” rating in a report on Tuesday, January 27th. Royal Bank Of Canada lowered their price objective on Rapid7 from $19.00 to $16.00 and set a “sector perform” rating on the stock in a research report on Monday, January 5th. Finally, Barclays cut Rapid7 from an “equal weight” rating to an “underweight” rating and reduced their target price for the stock from $18.00 to $15.00 in a research report on Monday, January 5th. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, sixteen have assigned a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus price target of $16.26.

Rapid7 Trading Down 3.4%

Shares of RPD stock opened at $10.39 on Wednesday. Rapid7 has a 1 year low of $10.20 and a 1 year high of $38.47. The company’s fifty day simple moving average is $14.00 and its two-hundred day simple moving average is $16.95. The company has a debt-to-equity ratio of 7.01, a current ratio of 1.19 and a quick ratio of 1.19. The stock has a market capitalization of $680.34 million, a price-to-earnings ratio of 30.56 and a beta of 0.79.

Rapid7 (NASDAQ:RPD) last announced its quarterly earnings results on Tuesday, February 10th. The technology company reported $0.44 earnings per share for the quarter, beating the consensus estimate of $0.40 by $0.04. The company had revenue of $217.39 million during the quarter, compared to analysts’ expectations of $215.17 million. Rapid7 had a return on equity of 67.30% and a net margin of 2.61%.The firm’s quarterly revenue was up .5% compared to the same quarter last year. During the same period in the previous year, the business earned $0.48 earnings per share. Rapid7 has set its FY 2026 guidance at 1.500-1.600 EPS and its Q1 2026 guidance at 0.290-0.320 EPS. As a group, analysts anticipate that Rapid7 will post 0.35 earnings per share for the current year.

Insider Buying and Selling

In other news, Director Thomas E. Schodorf purchased 6,300 shares of the company’s stock in a transaction on Wednesday, November 26th. The stock was acquired at an average price of $15.70 per share, with a total value of $98,910.00. Following the transaction, the director directly owned 34,440 shares of the company’s stock, valued at approximately $540,708. This represents a 22.39% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Jana Partners Management, Lp purchased 41,545 shares of the business’s stock in a transaction on Friday, November 28th. The stock was purchased at an average cost of $15.71 per share, for a total transaction of $652,671.95. Following the acquisition, the director owned 6,760,149 shares in the company, valued at approximately $106,201,940.79. The trade was a 0.62% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders have purchased a total of 67,345 shares of company stock worth $1,025,202 in the last 90 days. 2.40% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Rapid7

Hedge funds and other institutional investors have recently modified their holdings of the company. Sound Income Strategies LLC bought a new stake in shares of Rapid7 in the fourth quarter worth about $40,000. CI Investments Inc. raised its position in Rapid7 by 48.4% during the 3rd quarter. CI Investments Inc. now owns 2,281 shares of the technology company’s stock valued at $43,000 after purchasing an additional 744 shares during the last quarter. Abich Financial Wealth Management LLC purchased a new stake in Rapid7 in the 3rd quarter worth approximately $44,000. Headlands Technologies LLC bought a new stake in shares of Rapid7 in the 2nd quarter worth approximately $44,000. Finally, Parallel Advisors LLC increased its stake in shares of Rapid7 by 81.6% during the fourth quarter. Parallel Advisors LLC now owns 3,036 shares of the technology company’s stock valued at $46,000 after buying an additional 1,364 shares during the period. 95.66% of the stock is owned by institutional investors.

Trending Headlines about Rapid7

Here are the key news stories impacting Rapid7 this week:

• Positive Sentiment: Q4 results beat expectations — GAAP/non‑GAAP beats: EPS $0.44 vs. $0.40 consensus and revenue $217.4M vs. ~$215M expected; shows the business still generating growth and margin leverage. MarketBeat Earnings Snapshot
• Positive Sentiment: Strong cash flow and liquidity — full‑year free cash flow ~$130M and cash & equivalents + gov’t securities ~$659M, providing runway for product investment and M&A flexibility. Press Release
• Positive Sentiment: Product and partner momentum — ARR remains sizable at $840M; notable commercial moves (general availability of MDR for Microsoft, partnership with ARMO) support long‑term growth in AI‑driven security services. Press Release
• Neutral Sentiment: Industry recognition — Rapid7 cited as a Leader in Gartner’s 2025 Magic Quadrant for Exposure Assessment Platforms, which supports competitive positioning but is not an immediate earnings driver. Press Release
• Negative Sentiment: Revenue guidance disappointed — FY2026 revenue guidance $835M–$843M vs. consensus ~ $870M; Q1 revenue guidance $207M–$209M below the ~$213M Street estimate. That top‑line shortfall is the primary driver of the stock decline. Guidance Coverage
• Negative Sentiment: Q1 EPS guide below consensus — company guided $0.29–$0.32 for Q1 vs. ~ $0.34 consensus, signaling near‑term margin compression as Rapid7 continues AI/security investments. (Full‑year non‑GAAP EPS guide was slightly above consensus, but investors focused on near‑term miss.) Earnings Call Highlights
• Negative Sentiment: Flat ARR and modest growth — ARR of $840M was flat year‑over‑year and full‑year revenue rose only ~2%, raising concerns that subscription expansion is slowing and making guidance misses more meaningful. QuiverQuant Summary
• Negative Sentiment: Market reaction: several outlets note the stock dropped despite the beat, reflecting investor focus on the weaker guidance and ARR stagnation. MSN Coverage

About Rapid7

Rapid7, Inc is a publicly traded cybersecurity company headquartered in Boston, Massachusetts. Since its founding in 2000, the company has specialized in delivering cloud-based security data and analytics solutions designed to help organizations detect, investigate, and remediate cyber threats. Rapid7 operates under the NASDAQ symbol “RPD” and serves a broad range of industries, including technology, financial services, healthcare, retail, and the public sector.

The core of Rapid7’s offering is its Insight platform, a unified, cloud-native security operations and analytics suite.