Rapid7 (NASDAQ:RPD) Stock Rating Lowered by Wall Street Zen

Key Points

• Wall Street Zen downgraded Rapid7 from a "buy" to a "hold," and the wider analyst picture shows 2 buys, 17 holds and 3 sells with a consensus rating of “Reduce” and a $12.53 consensus price target.
• Shares fell about 7.5% and opened at $5.27, trading near their one-year low ($5.24) with a market cap of roughly $347 million and a high debt-to-equity ratio of 5.77.
• Rapid7 beat estimates for the latest quarter with $0.44 EPS (vs. $0.40) and $217.39M revenue, and issued FY2026 guidance of $1.50–$1.60 EPS and Q1 2026 guidance of $0.29–$0.32.

Rapid7 (NASDAQ:RPD - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a note issued to investors on Sunday.

A number of other research analysts have also issued reports on the company. Jefferies Financial Group set a $9.00 target price on Rapid7 in a report on Wednesday, February 11th. UBS Group restated a "neutral" rating and set a $9.00 price target on shares of Rapid7 in a report on Wednesday, February 11th. Barclays reduced their price target on Rapid7 from $15.00 to $8.00 and set an "underweight" rating on the stock in a research report on Thursday, February 12th. Citigroup decreased their price objective on Rapid7 from $15.00 to $11.50 and set a "neutral" rating for the company in a research note on Thursday, February 12th. Finally, Needham & Company LLC restated a "hold" rating on shares of Rapid7 in a research note on Wednesday, February 11th. Two equities research analysts have rated the stock with a Buy rating, seventeen have assigned a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat, Rapid7 presently has a consensus rating of "Reduce" and a consensus target price of $12.53.

Rapid7 Trading Down 7.5%

NASDAQ RPD opened at $5.27 on Friday. 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 $347.24 million, a price-to-earnings ratio of 14.64 and a beta of 0.88. The firm has a 50 day simple moving average of $8.33 and a 200-day simple moving average of $13.73. Rapid7 has a one year low of $5.24 and a one year high of $28.69.

Rapid7 (NASDAQ:RPD - Get Free Report) last announced 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 net margin of 2.72% and a return on equity of 47.33%. The firm had revenue of $217.39 million for the quarter, compared to the consensus estimate of $215.17 million. During the same period in the prior year, the firm earned $0.48 EPS. The firm'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. Equities research analysts anticipate that Rapid7 will post 0.35 EPS for the current fiscal year.

Institutional Trading of Rapid7

A number of institutional investors have recently bought and sold shares of RPD. Royal Bank of Canada increased its holdings in shares of Rapid7 by 26.8% in the 1st quarter. Royal Bank of Canada now owns 326,910 shares of the technology company's stock valued at $8,667,000 after acquiring an additional 69,122 shares during the last quarter. AQR Capital Management LLC purchased a new stake in Rapid7 during the first quarter worth approximately $424,000. Woodline Partners LP lifted its stake in Rapid7 by 48.0% during the first quarter. Woodline Partners LP now owns 86,712 shares of the technology company's stock worth $2,299,000 after purchasing an additional 28,115 shares during the last quarter. Franklin Resources Inc. boosted its holdings in Rapid7 by 167.3% in the second quarter. Franklin Resources Inc. now owns 80,659 shares of the technology company's stock valued at $1,866,000 after purchasing an additional 50,484 shares in the last quarter. Finally, Rhumbline Advisers boosted its holdings in Rapid7 by 17.4% in the second quarter. Rhumbline Advisers now owns 107,082 shares of the technology company's stock valued at $2,477,000 after purchasing an additional 15,891 shares in the last quarter. 95.66% of the stock is owned by hedge funds and other institutional investors.

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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