Truist Financial Cuts Rapid7 (NASDAQ:RPD) Price Target to $8.00

Rapid7 (NASDAQ:RPD) had its price objective reduced by analysts at Truist Financial from $14.00 to $8.00 in a research report issued on Wednesday,Benzinga reports. The firm currently has a “hold” rating on the technology company’s stock. Truist Financial’s price target points to a potential downside of 23.00% from the stock’s previous close.

A number of other equities analysts also recently commented on RPD. Jefferies Financial Group decreased their price target on Rapid7 from $18.00 to $13.00 and set a “hold” rating for the company in a research note on Monday, February 2nd. Mizuho dropped their price objective on Rapid7 from $20.00 to $16.00 and set a “neutral” rating on the stock in a research note on Wednesday, January 21st. Wall Street Zen cut shares of Rapid7 from a “buy” rating to a “hold” rating in a research note on Sunday, January 11th. Zacks Research cut shares of Rapid7 from a “strong-buy” rating to a “hold” rating in a report on Tuesday, January 27th. Finally, Berenberg Bank began coverage on Rapid7 in a report on Tuesday, November 18th. They issued a “hold” rating and a $16.00 target price on the stock. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, fifteen have assigned a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of “Hold” and an average price target of $17.58.

Rapid7 Stock Performance

NASDAQ RPD opened at $10.39 on Wednesday. Rapid7 has a 1-year low of $10.20 and a 1-year high of $38.47. The business’s 50-day simple moving average is $14.00 and its 200-day simple moving average is $16.95. The firm has a market capitalization of $680.34 million, a P/E ratio of 30.56 and a beta of 0.79. The company has a debt-to-equity ratio of 7.01, a current ratio of 1.19 and a quick ratio of 1.19.

Rapid7 (NASDAQ:RPD) last issued 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. The company had revenue of $217.39 million during the quarter, compared to the consensus estimate of $215.17 million. Rapid7 had a return on equity of 67.30% and a net margin of 2.61%.The company’s revenue was up .5% compared to the same quarter last year. During the same quarter in the prior 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. Equities analysts predict that Rapid7 will post 0.35 EPS for the current year.

Insider Activity

In other news, Director Thomas E. Schodorf purchased 6,300 shares of the stock in a transaction that occurred on Wednesday, November 26th. The shares were purchased at an average cost of $15.70 per share, for a total transaction of $98,910.00. Following the completion of the purchase, the director directly owned 34,440 shares of the company’s stock, valued at approximately $540,708. The trade was a 22.39% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Jana Partners Management, Lp acquired 41,545 shares of Rapid7 stock in a transaction on Friday, November 28th. The stock was purchased at an average price of $15.71 per share, with a total value of $652,671.95. Following the transaction, the director directly owned 6,760,149 shares in the company, valued at approximately $106,201,940.79. This trade represents a 0.62% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Over the last quarter, insiders acquired 67,345 shares of company stock worth $1,025,202. Corporate insiders own 2.40% of the company’s stock.

Institutional Investors Weigh In On Rapid7

A number of hedge funds have recently made changes to their positions in RPD. Parallel Advisors LLC raised its position in Rapid7 by 81.6% in the 4th quarter. Parallel Advisors LLC now owns 3,036 shares of the technology company’s stock valued at $46,000 after purchasing an additional 1,364 shares during the last quarter. State of Wyoming boosted its holdings in Rapid7 by 14.1% in the fourth quarter. State of Wyoming now owns 25,805 shares of the technology company’s stock valued at $392,000 after acquiring an additional 3,196 shares during the last quarter. Savant Capital LLC acquired a new stake in shares of Rapid7 during the 4th quarter worth approximately $214,000. Geode Capital Management LLC lifted its stake in shares of Rapid7 by 5.7% in the 4th quarter. Geode Capital Management LLC now owns 1,462,653 shares of the technology company’s stock valued at $22,236,000 after purchasing an additional 78,448 shares during the period. Finally, LSV Asset Management lifted its stake in Rapid7 by 25.1% in the fourth quarter. LSV Asset Management now owns 982,397 shares of the technology company’s stock valued at $14,932,000 after buying an additional 197,397 shares during the period. Institutional investors and hedge funds own 95.66% of the company’s stock.

Key Headlines Impacting Rapid7

Here are the key news stories impacting Rapid7 this week:

• Positive Sentiment: Q4 results beat expectations — GAAP/non‑GAAP beats: EPS $0.44 vs. $0.40 consensus and revenue $217.4M vs. ~$215M expected; shows the business still generating growth and margin leverage. MarketBeat Earnings Snapshot
• Positive Sentiment: Strong cash flow and liquidity — full‑year free cash flow ~$130M and cash & equivalents + gov’t securities ~$659M, providing runway for product investment and M&A flexibility. Press Release
• Positive Sentiment: Product and partner momentum — ARR remains sizable at $840M; notable commercial moves (general availability of MDR for Microsoft, partnership with ARMO) support long‑term growth in AI‑driven security services. Press Release
• Neutral Sentiment: Industry recognition — Rapid7 cited as a Leader in Gartner’s 2025 Magic Quadrant for Exposure Assessment Platforms, which supports competitive positioning but is not an immediate earnings driver. Press Release
• Negative Sentiment: Revenue guidance disappointed — FY2026 revenue guidance $835M–$843M vs. consensus ~ $870M; Q1 revenue guidance $207M–$209M below the ~$213M Street estimate. That top‑line shortfall is the primary driver of the stock decline. Guidance Coverage
• Negative Sentiment: Q1 EPS guide below consensus — company guided $0.29–$0.32 for Q1 vs. ~ $0.34 consensus, signaling near‑term margin compression as Rapid7 continues AI/security investments. (Full‑year non‑GAAP EPS guide was slightly above consensus, but investors focused on near‑term miss.) Earnings Call Highlights
• Negative Sentiment: Flat ARR and modest growth — ARR of $840M was flat year‑over‑year and full‑year revenue rose only ~2%, raising concerns that subscription expansion is slowing and making guidance misses more meaningful. QuiverQuant Summary
• Negative Sentiment: Market reaction: several outlets note the stock dropped despite the beat, reflecting investor focus on the weaker guidance and ARR stagnation. MSN Coverage

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.