Canaccord Genuity Group Issues Pessimistic Forecast for Rapid7 (NASDAQ:RPD) Stock Price

Key Points

• Canaccord Genuity cut its price target on Rapid7 from $10 to $7 and kept a "hold" rating, joining other brokerages that have trimmed targets and contributing to a consensus analyst rating of "Reduce" with a $9.47 consensus price target.
• Rapid7 beat Q1 estimates—$209.7M revenue and $0.36 EPS—and raised FY2026 EPS guidance to $1.520–1.600, but revenue and EPS are down year‑over‑year and the company carries high leverage (debt‑to‑equity 5.77) while shares trade around $6.57.

Rapid7 (NASDAQ:RPD - Get Free Report) had its price objective cut by stock analysts at Canaccord Genuity Group from $10.00 to $7.00 in a research note issued on Wednesday,Benzinga reports. The firm currently has a "hold" rating on the technology company's stock. Canaccord Genuity Group's target price would indicate a potential upside of 6.54% from the stock's previous close.

Several other brokerages also recently issued reports on RPD. Needham & Company LLC restated a "hold" rating on shares of Rapid7 in a research report on Wednesday, February 11th. Truist Financial decreased their price objective on shares of Rapid7 from $8.00 to $6.00 and set a "hold" rating on the stock in a research note on Friday, April 24th. Piper Sandler cut their price objective on Rapid7 from $10.00 to $8.00 and set a "neutral" rating on the stock in a report on Wednesday. Zacks Research downgraded Rapid7 from a "strong-buy" rating to a "hold" rating in a report on Tuesday, January 27th. Finally, DA Davidson decreased their price objective on Rapid7 from $14.00 to $6.50 and set an "underperform" rating for the company in a report on Wednesday, February 11th. Two investment analysts have rated the stock with a Buy rating, eighteen have assigned a Hold rating and three have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Reduce" and a consensus price target of $9.47.

Rapid7 Trading Down 1.6%

Shares of NASDAQ:RPD traded down $0.11 during midday trading on Wednesday, hitting $6.57. The company had a trading volume of 3,492,587 shares, compared to its average volume of 1,966,445. The company has a current ratio of 1.28, a quick ratio of 1.28 and a debt-to-equity ratio of 5.77. Rapid7 has a 12 month low of $4.97 and a 12 month high of $27.10. The firm has a fifty day simple moving average of $6.02 and a 200 day simple moving average of $11.32. The stock has a market cap of $438.68 million, a price-to-earnings ratio of 18.25 and a beta of 0.89.

Rapid7 (NASDAQ:RPD - Get Free Report) last posted its quarterly earnings data on Tuesday, May 5th. The technology company reported $0.36 earnings per share for the quarter, topping the consensus estimate of $0.30 by $0.06. Rapid7 had a return on equity of 47.33% and a net margin of 2.72%.The company had revenue of $209.69 million during the quarter, compared to analysts' expectations of $207.95 million. During the same period in the prior year, the firm earned $0.49 earnings per share. Rapid7's revenue for the quarter was down .3% compared to the same quarter last year. Rapid7 has set its FY 2026 guidance at 1.520-1.600 EPS and its Q2 2026 guidance at 0.330-0.360 EPS. On average, analysts predict that Rapid7 will post 0.55 EPS for the current year.

Institutional Trading of Rapid7

Several hedge funds have recently added to or reduced their stakes in RPD. JANA Partners Management LP raised 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 during the period. LSV Asset Management bought a new stake in shares of Rapid7 during the 3rd quarter valued at $14,719,000. Vanguard Group Inc. grew its stake in Rapid7 by 7.4% during the third quarter. Vanguard Group Inc. now owns 8,620,265 shares of the technology company's stock valued at $161,630,000 after acquiring an additional 595,916 shares in the last quarter. Teacher Retirement System of Texas grew its stake in Rapid7 by 91.1% during the third quarter. Teacher Retirement System of Texas now owns 105,064 shares of the technology company's stock valued at $1,970,000 after acquiring an additional 50,083 shares in the last quarter. Finally, Campbell & CO Investment Adviser LLC grew its stake in Rapid7 by 407.7% during the third quarter. Campbell & CO Investment Adviser LLC now owns 69,883 shares of the technology company's stock valued at $1,310,000 after acquiring an additional 56,119 shares in the last quarter. 95.66% of the stock is owned by institutional investors.

Rapid7 News Roundup

Here are the key news stories impacting Rapid7 this week:

• Positive Sentiment: Q1 results beat estimates: Rapid7 reported $209.7M in revenue (vs. ~$207.9M consensus) and $0.36 EPS (vs. $0.30 consensus), showing a near-term beat that underpins valuation support. Read More.
• Positive Sentiment: Raised forward EPS targets: Management set Q2 FY2026 EPS at $0.330–0.360 (above the prior consensus of $0.320) and FY2026 EPS at $1.520–1.600 (well above prior consensus), which improves near-term earnings visibility. Read More.
• Positive Sentiment: Healthy cash generation and ARR: ARR was $832M; operating cash flow was $40M and free cash flow $33M for the quarter, and non‑GAAP operating income was $24M — signs of improving cash conversion. Read More.
• Neutral Sentiment: Revenue guidance roughly in line with Street: Management’s FY revenue range ($836M–$842M) sits close to consensus (~$838.7M), so revenue guidance is not a clear positive surprise. Read More.
• Neutral Sentiment: Management commentary and details available — read the earnings call transcript for execution color and product/customer trends. Read More. • Read More.
• Negative Sentiment: Underlying growth softness and EPS decline YoY: Revenue was down ~0.3% year-over-year and EPS fell from $0.49 a year ago to $0.36, raising questions about sustained growth momentum. Read More.
• Negative Sentiment: GAAP loss and leverage: The company reported a small GAAP operating loss and carries high reported debt-to-equity (background metrics), which may temper risk appetite among some investors. Read More.

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.

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