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

Shares of Rapid7, Inc. (NASDAQ:RPD) reached a new 52-week low during trading on Wednesday after Barclays lowered their price target on the stock from $15.00 to $8.00. Barclays currently has an underweight rating on the stock. Rapid7 traded as low as $7.81 and last traded at $8.1490, with a volume of 311308 shares trading hands. The stock had previously closed at $10.39.

A number of other research analysts have also recently weighed in on the stock. Citigroup cut their price objective on shares of Rapid7 from $15.00 to $11.50 and set a “neutral” rating for the company in a report on Thursday. Berenberg Bank started coverage on Rapid7 in a research note on Tuesday, November 18th. They issued a “hold” rating and a $16.00 price target for the company. Weiss Ratings reiterated a “sell (d)” rating on shares of Rapid7 in a research report on Monday, December 29th. Piper Sandler dropped their price objective on Rapid7 from $16.00 to $10.00 and set a “neutral” rating on the stock in a report on Wednesday. Finally, Needham & Company LLC reaffirmed a “hold” rating on shares of Rapid7 in a research note on Wednesday. Two equities research analysts have rated the stock with a Buy rating, seventeen have issued a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of “Reduce” and a consensus price target of $12.53.

Insider Transactions at Rapid7

In other news, Director Mike Burns acquired 2,000 shares of the firm’s stock in a transaction on Thursday, November 20th. The shares were bought at an average price of $13.80 per share, for a total transaction of $27,600.00. Following the acquisition, the director owned 5,000 shares of the company’s stock, valued at approximately $69,000. This trade represents a 66.67% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through this hyperlink. Also, Director Thomas E. Schodorf bought 6,300 shares of the stock in a transaction on Wednesday, November 26th. The shares were 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 in the company, valued at $540,708. The trade was a 22.39% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders acquired 67,345 shares of company stock worth $1,025,202 in the last quarter. 2.40% of the stock is owned by insiders.

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

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the business. Sound Income Strategies LLC acquired a new position in shares of Rapid7 during the 4th quarter worth approximately $40,000. CI Investments Inc. increased its stake in shares of Rapid7 by 48.4% in the 3rd quarter. CI Investments Inc. now owns 2,281 shares of the technology company’s stock worth $43,000 after acquiring an additional 744 shares during the last quarter. Abich Financial Wealth Management LLC acquired a new stake in shares of Rapid7 in the 3rd quarter worth $44,000. Headlands Technologies LLC purchased a new position in shares of Rapid7 during the 2nd quarter worth $44,000. Finally, Parallel Advisors LLC boosted its position in shares of Rapid7 by 81.6% during the 4th quarter. Parallel Advisors LLC now owns 3,036 shares of the technology company’s stock valued at $46,000 after acquiring an additional 1,364 shares during the last quarter. 95.66% of the stock is owned by hedge funds and other institutional investors.

Rapid7 Price Performance

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’s fifty day moving average is $13.65 and its 200-day moving average is $16.81. The stock has a market cap 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 EPS for the quarter, topping analysts’ consensus estimates of $0.40 by $0.04. The company had revenue of $217.39 million for the quarter, compared to the consensus estimate of $215.17 million. Rapid7 had a net margin of 2.72% and a return on equity of 55.81%. Rapid7’s quarterly revenue was up .5% compared to the same quarter last year. During the same period in the previous year, the firm 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, equities analysts anticipate that Rapid7, Inc. will post 0.35 EPS for the current year.

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.