Scotiabank Has Pessimistic Outlook of Rapid7 FY2026 Earnings

Rapid7, Inc. (NASDAQ:RPD) – Stock analysts at Scotiabank cut their FY2026 EPS estimates for shares of Rapid7 in a research note issued to investors on Thursday, February 19th. Scotiabank analyst P. Colville now anticipates that the technology company will earn $0.60 per share for the year, down from their prior estimate of $0.74. Scotiabank currently has a “Sector Perform” rating and a $9.00 target price on the stock. The consensus estimate for Rapid7’s current full-year earnings is $0.35 per share. Scotiabank also issued estimates for Rapid7’s FY2027 earnings at $0.60 EPS.

Rapid7 (NASDAQ:RPD) last released its earnings results on Tuesday, February 10th. The technology company reported $0.44 EPS for the quarter, topping the consensus estimate of $0.40 by $0.04. The business had revenue of $217.39 million during the quarter, compared to analysts’ expectations of $215.17 million. Rapid7 had a return on equity of 47.33% and a net margin of 2.72%.The firm’s revenue was up .5% on a year-over-year basis. During the same quarter last year, the firm posted $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.

RPD has been the topic of a number of other reports. UBS Group reiterated a “neutral” rating and set a $9.00 price target on shares of Rapid7 in a report on Wednesday, February 11th. Zacks Research cut Rapid7 from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, January 27th. Weiss Ratings restated a “sell (d)” rating on shares of Rapid7 in a research report on Monday, December 29th. Truist Financial decreased their price objective on shares of Rapid7 from $14.00 to $8.00 and set a “hold” rating for the company in a report on Wednesday, February 11th. Finally, Stephens dropped their target price on shares of Rapid7 from $19.00 to $12.00 and set an “equal weight” rating on the stock in a research note on Wednesday, February 11th. Two equities research analysts have rated the stock with a Buy rating, seventeen have assigned a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat.com, Rapid7 has a consensus rating of “Reduce” and an average price target of $12.53.

Rapid7 Trading Down 7.3%

NASDAQ RPD opened at $6.57 on Monday. The company has a current ratio of 1.28, a quick ratio of 1.28 and a debt-to-equity ratio of 5.77. The business has a fifty day simple moving average of $12.54 and a 200 day simple moving average of $16.15. Rapid7 has a 12 month low of $6.56 and a 12 month high of $33.24. The firm has a market capitalization of $432.90 million, a P/E ratio of 18.25 and a beta of 0.79.

Insider Activity at Rapid7

In other Rapid7 news, Director Thomas E. Schodorf acquired 6,300 shares of Rapid7 stock in a transaction that occurred 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 purchase, the director owned 34,440 shares of the company’s stock, valued at approximately $540,708. This represents a 22.39% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Marc Evan Brown bought 3,000 shares of the company’s stock in a transaction on Tuesday, November 25th. The shares were bought at an average price of $15.21 per share, for a total transaction of $45,630.00. Following the transaction, the director owned 51,882 shares of the company’s stock, valued at approximately $789,125.22. This represents a 6.14% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last ninety days, insiders have acquired 50,845 shares of company stock worth $797,212. 2.40% of the stock is owned by corporate insiders.

Institutional Trading of Rapid7

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

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.