Rapid7 (NASDAQ:RPD) Reaches New 52-Week Low Following Analyst Downgrade

Rapid7, Inc. (NASDAQ:RPD)’s stock price reached a new 52-week low during mid-day trading on Wednesday after Royal Bank Of Canada lowered their price target on the stock from $16.00 to $12.00. Royal Bank Of Canada currently has a sector perform rating on the stock. Rapid7 traded as low as $7.81 and last traded at $8.1490, with a volume of 311308 shares traded. The stock had previously closed at $10.39.

RPD has been the topic of several other research reports. DA Davidson lowered their target price on shares of Rapid7 from $14.00 to $6.50 and set an “underperform” rating on the stock in a report on Wednesday. Wall Street Zen lowered Rapid7 from a “buy” rating to a “hold” rating in a report on Sunday, January 11th. Stifel Nicolaus cut their target price on Rapid7 from $18.00 to $9.00 and set a “hold” rating for the company in a research note on Wednesday. Piper Sandler decreased their price target on Rapid7 from $16.00 to $10.00 and set a “neutral” rating on the stock in a research note on Wednesday. Finally, Barclays lowered Rapid7 from an “equal weight” rating to an “underweight” rating and dropped their price objective for the stock from $18.00 to $15.00 in a report on Monday, January 5th. Two investment analysts have rated the stock with a Buy rating, seventeen have given a Hold rating and three have given a Sell rating to the company’s stock. According to MarketBeat, Rapid7 presently has an average rating of “Reduce” and a consensus target price of $13.87.

Insider Buying and Selling at Rapid7

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

Key Stories Impacting Rapid7

Here are the key news stories impacting Rapid7 this week:

• Positive Sentiment: Q4 beat on headline numbers — Rapid7 reported $0.44 non‑GAAP EPS (vs. ~$0.40 consensus) and Q4 revenue of ~$217M; FY2025 revenue and cash flow were positive (full‑year revenue $860M, free cash flow $130M), showing operational cash generation and a clean balance sheet. GlobeNewswire: Q4 & FY2025 results
• Positive Sentiment: Product and strategic wins — Rapid7 highlighted partnerships and product rollouts (Managed Detection & Response for Microsoft, ARMO partnership, 300th patent, Gartner recognition) that support long‑term competitive positioning in AI‑driven security. GlobeNewswire: Business highlights
• Neutral Sentiment: ARR stable but stagnant — Annualized recurring revenue (ARR) was $840M, flat year‑over‑year. That stabilizes the subscription base but raises questions about growth acceleration. GlobeNewswire: ARR disclosure
• Negative Sentiment: Weaker guidance drove concern — Q1 2026 guidance (revenue $207–209M; EPS $0.29–0.32) and FY2026 revenue guidance ($835–843M) came in below consensus (notably revenue) and implied flat‑to‑down growth, stoking disappointment despite EPS guidance that was roughly in line or modestly better on a non‑GAAP basis. Yahoo Finance deep dive
• Negative Sentiment: Analysts cut targets / ratings — Several firms trimmed price targets and/or downgraded the stock (RBC, Scotiabank, Truist, Mizuho; UBS reaffirmed neutral). Those moves accelerated selling pressure and signaled lower near‑term expectations. The Fly: UBS note Benzinga: analyst updates
• Negative Sentiment: Market reaction prioritized forward momentum over the quarter beat — commentary and sell‑side notes emphasize the cost of AI investments and potential near‑term margin pressure, plus a Q1 ARR pick‑down, which hurt investor confidence. Yahoo Finance: analysis

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the stock. Headlands Technologies LLC purchased a new stake in Rapid7 in the second quarter valued at approximately $44,000. CI Investments Inc. lifted its stake 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 acquiring an additional 744 shares during the period. Abich Financial Wealth Management LLC purchased a new stake in shares of Rapid7 in the 3rd quarter valued at $44,000. Sound Income Strategies LLC acquired a new stake in shares of Rapid7 in the fourth quarter worth $40,000. Finally, State of Alaska Department of Revenue purchased a new position in shares of Rapid7 during the third quarter worth $53,000. Institutional investors and hedge funds own 95.66% of the company’s stock.

Rapid7 Trading Down 29.0%

The stock has a market cap of $483.24 million, a PE ratio of 20.50 and a beta of 0.79. The company’s fifty day moving average is $13.83 and its 200-day moving average is $16.88. The company has a debt-to-equity ratio of 7.01, a current ratio of 1.19 and a quick ratio of 1.19.

Rapid7 (NASDAQ:RPD) last released its quarterly earnings data on Tuesday, February 10th. The technology company reported $0.44 EPS for the quarter, topping the consensus estimate of $0.40 by $0.04. Rapid7 had a return on equity of 55.81% and a net margin of 2.72%.The business had revenue of $217.39 million for the quarter, compared to analyst estimates of $215.17 million. During the same quarter in the prior year, the firm posted $0.48 EPS. The business’s quarterly revenue was up .5% compared to the same quarter last year. Rapid7 has set its FY 2026 guidance at 1.500-1.600 EPS and its Q1 2026 guidance at 0.290-0.320 EPS. On average, analysts predict that Rapid7, Inc. will post 0.35 earnings per share for the current fiscal year.

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.