Rapid7 (NASDAQ:RPD) Earns Hold Rating from Needham & Company LLC

Rapid7 (NASDAQ:RPD)‘s stock had its “hold” rating restated by research analysts at Needham & Company LLC in a report issued on Wednesday,Benzinga reports.

RPD has been the subject of several other research reports. DA Davidson reduced their price target on shares of Rapid7 from $16.00 to $14.00 and set an “underperform” rating for the company in a research report on Wednesday, November 5th. Zacks Research downgraded Rapid7 from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, January 27th. Mizuho reduced their target price on Rapid7 from $16.00 to $12.00 and set a “neutral” rating for the company in a report on Wednesday. JPMorgan Chase & Co. decreased their price target on Rapid7 from $22.00 to $20.00 and set a “neutral” rating for the company in a research note on Wednesday, November 5th. Finally, Jefferies Financial Group dropped their price objective on Rapid7 from $18.00 to $13.00 and set a “hold” rating on the stock in a research report on Monday, February 2nd. Two research analysts have rated the stock with a Buy rating, seventeen have given a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Reduce” and an average price target of $12.53.

Rapid7 Trading Down 3.9%

NASDAQ RPD opened at $7.09 on Wednesday. Rapid7 has a 12 month low of $7.06 and a 12 month high of $36.45. The company has a current ratio of 1.19, a quick ratio of 1.19 and a debt-to-equity ratio of 7.01. The stock’s fifty day moving average price is $13.65 and its 200-day moving average price is $16.81. The stock has a market cap of $464.25 million, a P/E ratio of 19.69 and a beta of 0.79.

Rapid7 (NASDAQ:RPD) last posted its quarterly earnings results on Tuesday, February 10th. The technology company reported $0.44 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.40 by $0.04. The firm had revenue of $217.39 million during the quarter, compared to analyst estimates of $215.17 million. Rapid7 had a return on equity of 55.81% and a net margin of 2.72%.Rapid7’s quarterly revenue was up .5% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.48 EPS. 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, equities analysts forecast that Rapid7 will post 0.35 EPS for the current fiscal 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 cost of $15.70 per share, for a total transaction of $98,910.00. Following the completion of the transaction, the director directly owned 34,440 shares in the company, valued at $540,708. This trade represents a 22.39% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, CEO Corey E. Thomas acquired 14,500 shares of Rapid7 stock in a transaction dated Monday, November 24th. The stock was purchased at an average cost of $13.82 per share, with a total value of $200,390.00. Following the completion of the purchase, the chief executive officer owned 595,066 shares of the company’s stock, valued at approximately $8,223,812.12. This represents a 2.50% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders have bought a total of 67,345 shares of company stock valued at $1,025,202 in the last 90 days. 2.40% of the stock is owned by insiders.

Hedge Funds Weigh In On Rapid7

Several hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. increased its holdings in shares of Rapid7 by 7.6% in the 4th quarter. Vanguard Group Inc. now owns 9,273,763 shares of the technology company’s stock worth $140,961,000 after buying an additional 653,498 shares during the last quarter. JANA Partners Management LP grew its position in Rapid7 by 13.5% in the third quarter. JANA Partners Management LP now owns 6,502,108 shares of the technology company’s stock worth $121,915,000 after acquiring an additional 772,194 shares in the last quarter. Penserra Capital Management LLC increased its stake in Rapid7 by 45.3% during the second quarter. Penserra Capital Management LLC now owns 2,731,192 shares of the technology company’s stock worth $63,172,000 after acquiring an additional 851,108 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in Rapid7 by 1.6% during the third quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 2,170,876 shares of the technology company’s stock worth $40,716,000 after acquiring an additional 34,438 shares during the last quarter. Finally, First Trust Advisors LP raised its position in Rapid7 by 1.6% during the third quarter. First Trust Advisors LP now owns 1,568,047 shares of the technology company’s stock valued at $29,401,000 after purchasing an additional 24,277 shares during the period. Hedge funds and other institutional investors own 95.66% of the company’s stock.

Key Headlines Impacting Rapid7

Here are the key news stories impacting Rapid7 this week:

• Positive Sentiment: Modest Q4 beat — Rapid7 reported a slight EPS and revenue beat for Q4 (EPS topped estimates; revenue ~$217.4M vs. ~$215.2M est.), showing the business still generates revenue upside. RPD Q4 Deep Dive
• Positive Sentiment: Partner momentum — Rapid7 announced its 2026 Partner of the Year winners, underscoring partner channel engagement that supports sales/renewals over time. Partner Awards Release
• Neutral Sentiment: Guidance and strategic investments — Company outlined FY‑2026 revenue (~$835M–$843M) and reiterated plans to invest in AI-driven security offerings; management framed this as strategic but capital-intensive. Investors will be watching execution vs. the guide. Revenue Guidance
• Neutral Sentiment: Earnings call transparency — Full Q4 call transcripts and analyst commentary are available for deeper read; they highlight AI spend and margin pressure but also product roadmap details. Earnings Call Transcript
• Negative Sentiment: Multiple analyst price‑target cuts and downgrades — After earnings several firms cut targets and/or ratings (Barclays to $8/underweight; Truist to $8/hold; Scotiabank to $9/sector perform; Mizuho to $12/neutral; RBC to $12/sector perform; UBS reaffirmed neutral at $9). That coordinated downward repricing is pressuring the stock. Analyst Notes (Benzinga)
• Negative Sentiment: Weak guidance tone and margin concerns — Coverage and deep‑dive pieces emphasize “flat sales,” heavier AI investment and cautious guidance for near term, which together explain investor selling despite the modest beat. Deep Dive: Flat Sales & Weak Guidance

Rapid7 Company Profile

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.