UBS Group Reaffirms “Neutral” Rating for Rapid7 (NASDAQ:RPD)

Rapid7 (NASDAQ:RPD)‘s stock had its “neutral” rating restated by equities research analysts at UBS Group in a report released on Wednesday. They currently have a $9.00 price objective on the technology company’s stock. UBS Group’s target price indicates a potential downside of 13.38% from the stock’s previous close.

A number of other research firms have also recently commented on RPD. Needham & Company LLC reissued a “hold” rating on shares of Rapid7 in a report on Wednesday. Royal Bank Of Canada dropped their price objective on shares of Rapid7 from $19.00 to $16.00 and set a “sector perform” rating for the company in a research note on Monday, January 5th. Citigroup downgraded Rapid7 from a “buy” rating to a “neutral” rating and cut their price objective for the company from $25.00 to $15.00 in a report on Monday, January 12th. Weiss Ratings reiterated a “sell (d)” rating on shares of Rapid7 in a research report on Monday, December 29th. Finally, Zacks Research downgraded shares of Rapid7 from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, January 27th. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, sixteen have given a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $16.26.

Rapid7 Trading Down 3.4%

Shares of RPD stock opened at $10.39 on Wednesday. Rapid7 has a fifty-two week low of $10.20 and a fifty-two week high of $38.47. The stock’s fifty day moving average price is $14.00 and its two-hundred day moving average price is $16.95. The company has a debt-to-equity ratio of 7.01, a quick ratio of 1.19 and a current ratio of 1.19. The company has a market cap of $680.34 million, a PE ratio of 30.56 and a beta of 0.79.

Rapid7 (NASDAQ:RPD) last posted its quarterly earnings results on Tuesday, February 10th. The technology company reported $0.44 EPS for the quarter, topping analysts’ consensus estimates 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 67.30% and a net margin of 2.61%.Rapid7’s revenue was up .5% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.48 EPS. 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 fiscal year.

Insider Buying and Selling at Rapid7

In other Rapid7 news, Director Jana Partners Management, Lp bought 41,545 shares of the firm’s stock in a transaction that occurred on Friday, November 28th. The stock was acquired at an average price of $15.71 per share, with a total value of $652,671.95. Following the completion of the purchase, the director directly owned 6,760,149 shares of the company’s stock, valued at approximately $106,201,940.79. This trade represents a 0.62% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Mike Burns bought 2,000 shares of the stock in a transaction on Thursday, November 20th. The stock was acquired at an average price of $13.80 per share, with a total value of $27,600.00. Following the completion of the acquisition, the director owned 5,000 shares of the company’s stock, valued at $69,000. This represents a 66.67% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders have purchased 67,345 shares of company stock valued at $1,025,202 over the last three months. 2.40% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Royal Bank of Canada increased its stake in Rapid7 by 26.8% during the 1st quarter. Royal Bank of Canada now owns 326,910 shares of the technology company’s stock valued at $8,667,000 after purchasing an additional 69,122 shares in the last quarter. AQR Capital Management LLC bought a new stake in Rapid7 during the first quarter worth $424,000. Woodline Partners LP boosted its position in Rapid7 by 48.0% in 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. Bayforest Capital Ltd grew its position in Rapid7 by 12.3% during the second quarter. Bayforest Capital Ltd now owns 12,576 shares of the technology company’s stock valued at $291,000 after buying an additional 1,382 shares during the period. Finally, Nordea Investment Management AB raised its position in Rapid7 by 1.0% in the second quarter. Nordea Investment Management AB now owns 78,294 shares of the technology company’s stock worth $1,808,000 after acquiring an additional 753 shares during the period. 95.66% of the stock is owned by institutional investors.

More Rapid7 News

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

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.