Rapid7, Inc. (NASDAQ:RPD) Given Average Recommendation of "Reduce" by Analysts

Key Points

• Analysts collectively rate Rapid7 “Reduce”: Of 23 analysts, four recommend selling, 18 recommend holding and one recommends buying. The average 12-month price target is approximately $11.98, below the reported $13.00 opening price.
• Rapid7 exceeded quarterly earnings expectations: The company reported $0.44 in EPS versus the $0.35 consensus estimate and revenue of $210.88 million, slightly above forecasts. However, revenue declined 1.5% year over year, tempering the positive results.
• Institutional ownership remains high, but risks persist: Institutional investors and hedge funds own 95.66% of the stock, with several major holders increasing their positions. Rapid7’s restructuring and execution costs may pressure near-term performance as it refocuses on its core platform.

Rapid7, Inc. (NASDAQ:RPD - Get Free Report) has received a consensus recommendation of "Reduce" from the twenty-three research firms that are currently covering the stock, MarketBeat reports. Four equities research analysts have rated the stock with a sell rating, eighteen have given a hold rating and one has issued a buy rating on the company. The average 1-year price target among analysts that have covered the stock in the last year is $11.9816.

A number of brokerages have weighed in on RPD. Jefferies Financial Group reissued a "hold" rating and issued a $12.00 price target on shares of Rapid7 in a report on Tuesday, August 11th. Raymond James Financial reiterated an "outperform" rating and issued a $15.00 target price on shares of Rapid7 in a report on Tuesday, August 11th. JPMorgan Chase & Co. increased their target price on shares of Rapid7 from $7.00 to $12.00 and gave the company a "neutral" rating in a research note on Tuesday, August 11th. Weiss Ratings restated a "sell (d)" rating on shares of Rapid7 in a report on Wednesday, June 24th. Finally, Morgan Stanley lowered shares of Rapid7 from an "equal weight" rating to an "underweight" rating and set a $9.00 price target on the stock. in a research report on Tuesday, July 21st.

Hedge Funds Weigh In On Rapid7

Hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. lifted its holdings in shares of Rapid7 by 7.6% during the fourth quarter. Vanguard Group Inc. now owns 9,273,763 shares of the technology company's stock valued at $140,961,000 after purchasing an additional 653,498 shares during the last quarter. First Trust Advisors LP increased its stake in Rapid7 by 48.3% in the 4th quarter. First Trust Advisors LP now owns 2,326,056 shares of the technology company's stock worth $35,356,000 after purchasing an additional 758,009 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in Rapid7 by 1.6% in the 3rd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 2,170,876 shares of the technology company's stock worth $40,716,000 after purchasing an additional 34,438 shares in the last quarter. Geode Capital Management LLC raised its holdings in Rapid7 by 5.7% during the 4th quarter. Geode Capital Management LLC now owns 1,462,653 shares of the technology company's stock worth $22,236,000 after buying an additional 78,448 shares during the period. Finally, Marshall Wace LLP raised its holdings in Rapid7 by 23.3% during the 4th quarter. Marshall Wace LLP now owns 1,404,686 shares of the technology company's stock worth $21,351,000 after buying an additional 265,413 shares during the period. 95.66% of the stock is currently owned by institutional investors and hedge funds.

Rapid7 Price Performance

Shares of RPD stock opened at $13.00 on Monday. Rapid7 has a 1 year low of $4.97 and a 1 year high of $21.77. The company has a debt-to-equity ratio of 1.50, a quick ratio of 0.80 and a current ratio of 0.80. The business's fifty day moving average is $9.66 and its 200-day moving average is $7.96. The stock has a market cap of $876.20 million, a PE ratio of 41.94 and a beta of 0.97.

Rapid7 (NASDAQ:RPD - Get Free Report) last announced its quarterly earnings data on Monday, August 10th. The technology company reported $0.44 earnings per share for the quarter, beating the consensus estimate of $0.35 by $0.09. Rapid7 had a return on equity of 27.89% and a net margin of 2.35%.The business had revenue of $210.88 million during the quarter, compared to analyst estimates of $208.23 million. During the same quarter in the prior year, the firm posted $0.58 earnings per share. The company's revenue was down 1.5% on a year-over-year basis. Rapid7 has set its Q3 2026 guidance at 0.440-0.470 EPS. Equities analysts expect that Rapid7 will post 0.69 earnings per share for the current fiscal year.

Key Headlines Impacting Rapid7

Here are the key news stories impacting Rapid7 this week:

• Positive Sentiment: Rapid7 reported quarterly earnings of $0.44 per share, exceeding the $0.35 consensus estimate, while revenue of $210.88 million also topped expectations. The results and subsequent guidance of $0.44–$0.47 in quarterly EPS provide support for the stock. Rapid7 Shares Gap Up Following Earnings Beat
• Positive Sentiment: Rapid7’s research with Omdia identified a significant gap in corporate AI governance, with executive security leaders reporting greater concern and engagement. The findings could reinforce demand for Rapid7’s security and risk-management products as businesses expand AI adoption. Rapid7-Omdia AI Governance Research
• Positive Sentiment: Stephens raised its price target to $12, while reports from Robert W. Baird and JPMorgan described potential for meaningful price appreciation. These targets suggest some analysts view the recent weakness as an opportunity. Stephens Raises Rapid7 Price Target
• Neutral Sentiment: Stifel Nicolaus maintained a Hold rating, indicating that the earnings improvement has not yet changed its overall risk-reward assessment. Stifel Maintains Hold Rating
• Neutral Sentiment: Zacks’ value-focused review highlights valuation, growth and estimate-revision trends but does not provide a clear new catalyst. Zacks Rapid7 Value Review
• Negative Sentiment: Rapid7’s 2026 restructuring is intended to refocus the company on its core platform, but restructuring costs and execution risks may pressure near-term results. Revenue also declined 1.5% year over year, tempering the earnings beat. Rapid7 Announces 2026 Restructuring

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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