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

Key Points

• Analysts have a consensus recommendation of "Reduce" on Rapid7 from 22 analysts (3 sell, 17 hold, 2 buy) with an average 12‑month target of $12.53 while the stock opened at $5.24.
• Rapid7 slightly beat quarterly estimates (EPS $0.44 vs $0.40; revenue $217.39M vs $215.17M), issued FY2026 EPS guidance of $1.50–$1.60, and shows heavy institutional ownership at 95.66% alongside a market cap of $345.28M and a debt-to-equity ratio of 5.77.

Rapid7, Inc. (NASDAQ:RPD - Get Free Report) has received a consensus recommendation of "Reduce" from the twenty-two analysts that are covering the stock, Marketbeat reports. Three investment analysts have rated the stock with a sell recommendation, seventeen have given a hold recommendation and two have assigned a buy recommendation to the company. The average 12 month target price among analysts that have updated their coverage on the stock in the last year is $12.5263.

Several equities analysts have recently weighed in on the company. Citigroup reduced their price target on Rapid7 from $15.00 to $11.50 and set a "neutral" rating for the company in a research report on Thursday, February 12th. Weiss Ratings reiterated a "sell (d)" rating on shares of Rapid7 in a research report on Friday, March 27th. Jefferies Financial Group set a $9.00 price target on Rapid7 in a research report on Wednesday, February 11th. Royal Bank Of Canada reduced their price target on Rapid7 from $16.00 to $12.00 and set a "sector perform" rating for the company in a research report on Wednesday, February 11th. Finally, Morgan Stanley set a $10.00 price target on Rapid7 in a research report on Thursday, February 12th.

Rapid7 Stock Performance

NASDAQ:RPD opened at $5.24 on Tuesday. The company has a debt-to-equity ratio of 5.77, a current ratio of 1.28 and a quick ratio of 1.28. The business has a fifty day simple moving average of $6.78 and a two-hundred day simple moving average of $12.58. Rapid7 has a 1 year low of $4.97 and a 1 year high of $27.10. The company has a market capitalization of $345.28 million, a P/E ratio of 14.56 and a beta of 0.90.

Rapid7 (NASDAQ:RPD - Get Free Report) last announced its quarterly earnings results on Tuesday, February 10th. The technology company reported $0.44 earnings per share for the quarter, beating the consensus estimate of $0.40 by $0.04. The company 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 quarterly revenue was up .5% compared to the same quarter last year. During the same period in the previous year, the business 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. On average, analysts expect that Rapid7 will post 0.35 earnings per share for the current year.

Hedge Funds Weigh In On Rapid7

Hedge funds have recently made changes to their positions in the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in Rapid7 by 114.9% during the second quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 2,136,438 shares of the technology company's stock valued at $49,409,000 after buying an additional 1,142,148 shares during the period. LSV Asset Management bought a new stake in Rapid7 during the third quarter valued at $14,719,000. JANA Partners Management LP boosted its stake in Rapid7 by 13.5% during the third quarter. JANA Partners Management LP now owns 6,502,108 shares of the technology company's stock valued at $121,915,000 after buying an additional 772,194 shares during the period. First Trust Advisors LP boosted its stake in Rapid7 by 48.3% during the fourth quarter. First Trust Advisors LP now owns 2,326,056 shares of the technology company's stock valued at $35,356,000 after buying an additional 758,009 shares during the period. Finally, Vanguard Group Inc. boosted its stake in 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 buying an additional 653,498 shares during the period. 95.66% of the stock is currently owned by hedge funds and other institutional investors.

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.

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