UBS Group Reaffirms “Neutral” Rating for Rapid7 (NASDAQ:RPD)

Rapid7 (NASDAQ:RPD)‘s stock had its “neutral” rating reissued by equities research analysts at UBS Group in a research note issued on Wednesday, MarketBeat Ratings reports. They currently have a $9.00 price target on the technology company’s stock. UBS Group’s target price would suggest a potential upside of 26.94% from the company’s previous close.

A number of other equities research analysts also recently commented on the company. Wall Street Zen downgraded Rapid7 from a “buy” rating to a “hold” rating in a report on Sunday, January 11th. Scotiabank cut their price target on shares of Rapid7 from $20.00 to $18.00 and set a “sector perform” rating for the company in a report on Wednesday, November 5th. Barclays cut shares of Rapid7 from an “equal weight” rating to an “underweight” rating and reduced their price objective for the company from $18.00 to $15.00 in a research note on Monday, January 5th. Morgan Stanley restated an “outperform” rating and set a $18.00 target price on shares of Rapid7 in a research report on Thursday, December 18th. Finally, Mizuho dropped their target price on shares of Rapid7 from $16.00 to $12.00 and set a “neutral” rating for the company in a report on Wednesday. Two research analysts have rated the stock with a Buy rating, seventeen have issued a Hold rating and three have issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Reduce” and a consensus target price of $12.53.

Rapid7 Price Performance

Shares of RPD opened at $7.09 on Wednesday. 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 50 day moving average is $13.65 and its two-hundred day moving average is $16.81. Rapid7 has a twelve month low of $7.06 and a twelve month high of $36.45. The firm has a market capitalization of $464.25 million, a PE ratio of 19.69 and a beta of 0.79.

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

Insider Activity

In related news, Director Jana Partners Management, Lp purchased 41,545 shares of the company’s stock in a transaction on Friday, November 28th. The stock was bought at an average price of $15.71 per share, with a total value of $652,671.95. Following the completion of the transaction, the director owned 6,760,149 shares of the company’s stock, valued at approximately $106,201,940.79. This represents a 0.62% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Corey E. Thomas purchased 14,500 shares of the business’s stock in a transaction dated Monday, November 24th. The stock was bought at an average cost of $13.82 per share, with a total value of $200,390.00. Following the completion of the acquisition, the chief executive officer owned 595,066 shares of the company’s stock, valued at approximately $8,223,812.12. The trade was a 2.50% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Over the last three months, insiders acquired 67,345 shares of company stock worth $1,025,202. 2.40% of the stock is owned by corporate insiders.

Institutional Trading of Rapid7

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Prudential Financial Inc. raised its stake in Rapid7 by 8.8% in the 2nd quarter. Prudential Financial Inc. now owns 8,513 shares of the technology company’s stock valued at $197,000 after purchasing an additional 690 shares during the last quarter. Wealth Enhancement Advisory Services LLC boosted its stake in shares of Rapid7 by 6.3% during the 3rd quarter. Wealth Enhancement Advisory Services LLC now owns 12,427 shares of the technology company’s stock worth $221,000 after purchasing an additional 732 shares during the last quarter. CI Investments Inc. grew its holdings in shares of Rapid7 by 48.4% during the third quarter. CI Investments Inc. now owns 2,281 shares of the technology company’s stock worth $43,000 after buying an additional 744 shares in the last quarter. Nordea Investment Management AB grew its holdings in shares of Rapid7 by 1.0% during the second quarter. Nordea Investment Management AB now owns 78,294 shares of the technology company’s stock worth $1,808,000 after buying an additional 753 shares in the last quarter. Finally, Teacher Retirement System of Texas raised its position in shares of Rapid7 by 1.6% in the second quarter. Teacher Retirement System of Texas now owns 54,981 shares of the technology company’s stock valued at $1,272,000 after buying an additional 890 shares during the last quarter. Hedge funds and other institutional investors own 95.66% of the company’s stock.

Trending Headlines about 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

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.