Rapid7 (NASDAQ:RPD) Downgraded by Wall Street Zen to Hold

Key Points

• Rapid7 was downgraded by Wall Street Zen from "buy" to "hold" and multiple firms cut price targets this week; consensus across 22 analysts is tilted to "Reduce" with a $12.53 average price target (2 Buy, 17 Hold, 3 Sell).
• The stock opened at $5.24 and is trading well below its 200‑day moving average ($12.58) with a 12‑month range of $4.97–$27.10, a market cap of about $345 million and a high debt‑to‑equity ratio of 5.77.
• Rapid7 beat quarterly EPS estimates ($0.44 vs. $0.40) and reported $217.4M revenue (+0.5% YoY), while issuing FY2026 guidance of $1.50–$1.60 EPS and Q1 2026 guidance of $0.29–$0.32 EPS.

Rapid7 (NASDAQ:RPD - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a report released on Tuesday.

Several other research firms have also weighed in on RPD. Stifel Nicolaus reduced their target price on Rapid7 from $18.00 to $9.00 and set a "hold" rating for the company in a report on Wednesday, February 11th. Stephens cut their price target on Rapid7 from $19.00 to $12.00 and set an "equal weight" rating for the company in a report on Wednesday, February 11th. Mizuho cut their price target on Rapid7 from $16.00 to $12.00 and set a "neutral" rating for the company in a report on Wednesday, February 11th. Citigroup cut their price target on Rapid7 from $15.00 to $11.50 and set a "neutral" rating for the company in a report on Thursday, February 12th. Finally, Jefferies Financial Group set a $9.00 price target on Rapid7 in a report on Wednesday, February 11th. Two equities research analysts have rated the stock with a Buy rating, seventeen have issued a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat, Rapid7 currently has an average rating of "Reduce" and a consensus price target of $12.53.

Rapid7 Stock Up 3.4%

RPD opened at $5.24 on Tuesday. The business has a 50 day moving average price of $6.78 and a 200 day moving average price of $12.58. Rapid7 has a twelve month low of $4.97 and a twelve month high of $27.10. The company has a debt-to-equity ratio of 5.77, a quick ratio of 1.28 and a current ratio of 1.28. The firm has a market cap of $345.28 million, a P/E ratio of 14.56 and a beta of 0.90.

Rapid7 (NASDAQ:RPD - Get Free Report) last posted its earnings results on Tuesday, February 10th. The technology company reported $0.44 earnings per share for the quarter, topping the consensus estimate of $0.40 by $0.04. Rapid7 had a return on equity of 47.33% and a net margin of 2.72%.The firm had revenue of $217.39 million during the quarter, compared to analyst estimates of $215.17 million. During the same period in the previous year, the company earned $0.48 EPS. The company's revenue for the quarter was up .5% on a year-over-year basis. Rapid7 has set its FY 2026 guidance at 1.500-1.600 EPS and its Q1 2026 guidance at 0.290-0.320 EPS. Research analysts forecast that Rapid7 will post 0.35 EPS for the current year.

Institutional Trading of Rapid7

Institutional investors and hedge funds have recently modified their holdings of the company. JANA Partners Management LP increased its position in shares of 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 purchasing an additional 772,194 shares during the period. LSV Asset Management bought a new stake in shares of Rapid7 during the third quarter valued at approximately $14,719,000. Assenagon Asset Management S.A. increased its position in shares of Rapid7 by 366.2% during the third quarter. Assenagon Asset Management S.A. now owns 144,707 shares of the technology company's stock valued at $2,713,000 after purchasing an additional 113,664 shares during the period. Vanguard Group Inc. increased its position in shares of 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 purchasing an additional 595,916 shares during the period. Finally, Campbell & CO Investment Adviser LLC increased its position in shares of 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 purchasing an additional 56,119 shares during the period. 95.66% of the stock is currently owned by 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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