Rapid7 (NASDAQ:RPD) Upgraded to "Buy" at Wall Street Zen

Key Points

• Wall Street Zen upgraded Rapid7 to “Buy” from “Hold,” although broader analyst sentiment remains cautious: 18 analysts rate the stock Hold, four rate it Sell, and the consensus price target is $11.98.
• Rapid7 reported quarterly EPS of $0.44, beating the $0.35 estimate, while revenue of $210.88 million also exceeded expectations. However, revenue declined 1.5% year over year, and the company forecast third-quarter EPS of $0.44–$0.47.
• Institutional investors own 95.66% of Rapid7, with several major funds increasing their positions. The stock opened at $13.00, up from its 50-day average of $9.66 but well below its one-year high of $21.77.

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

A number of other research analysts have also recently commented on RPD. Stifel Nicolaus raised their price target on Rapid7 from $7.00 to $13.00 and gave the stock a "hold" rating in a research report on Tuesday. Robert W. Baird upped their price objective on shares of Rapid7 from $8.00 to $10.00 and gave the stock a "neutral" rating in a research report on Tuesday. UBS Group increased their price objective on shares of Rapid7 from $7.00 to $12.00 and gave the stock a "neutral" rating in a research note on Tuesday. JPMorgan Chase & Co. raised their target price on shares of Rapid7 from $7.00 to $12.00 and gave the company a "neutral" rating in a report on Tuesday. Finally, DA Davidson boosted their target price on shares of Rapid7 from $5.25 to $9.00 and gave the company an "underperform" rating in a research report on Tuesday. One equities research analyst has rated the stock with a Buy rating, eighteen have issued a Hold rating and four have issued a Sell rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Reduce" and a consensus price target of $11.98.

Rapid7 Trading Down 5.7%

RPD stock opened at $13.00 on Friday. The company has a debt-to-equity ratio of 1.50, a current ratio of 0.80 and a quick ratio of 0.78. The company has a fifty day moving average price of $9.66 and a two-hundred day moving average price of $8.00. Rapid7 has a one year low of $4.97 and a one year high of $21.77. The stock has a market cap of $876.20 million, a price-to-earnings ratio of 41.94 and a beta of 0.97.

Rapid7 (NASDAQ:RPD - Get Free Report) last posted its earnings results on Monday, August 10th. The technology company reported $0.44 EPS 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 company had revenue of $210.88 million for the quarter, compared to the consensus estimate of $208.23 million. During the same quarter in the prior year, the business earned $0.58 earnings per share. The firm's revenue for the quarter 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 anticipate that Rapid7 will post 0.69 EPS for the current year.

Hedge Funds Weigh In On Rapid7

Institutional investors and hedge funds have recently modified their holdings of the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in shares of Rapid7 by 114.9% in the 2nd 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 acquiring an additional 1,142,148 shares in the last quarter. 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 worth $35,356,000 after acquiring an additional 758,009 shares in the last quarter. 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 worth $140,961,000 after acquiring an additional 653,498 shares in the last quarter. Bank of New York Mellon Corp acquired a new stake in Rapid7 in the second quarter worth $3,844,000. Finally, Marshall Wace LLP grew its holdings in Rapid7 by 60.9% in the third quarter. Marshall Wace LLP now owns 1,139,273 shares of the technology company's stock worth $21,361,000 after purchasing an additional 431,195 shares during the period. 95.66% of the stock is currently owned by institutional investors.

Trending Headlines about 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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