Mizuho Cuts Rapid7 (NASDAQ:RPD) Price Target to $12.00

Rapid7 (NASDAQ:RPD) had its price target dropped by stock analysts at Mizuho from $16.00 to $12.00 in a research note issued on Wednesday,Benzinga reports. The firm presently has a “neutral” rating on the technology company’s stock. Mizuho’s price target would suggest a potential upside of 15.50% from the company’s current price.

Several other research firms have also commented on RPD. UBS Group decreased their price objective on shares of Rapid7 from $29.00 to $25.00 and set a “buy” rating on the stock in a research report on Tuesday, January 13th. Truist Financial decreased their price target on Rapid7 from $14.00 to $8.00 and set a “hold” rating on the stock in a research note on Wednesday. Citigroup lowered Rapid7 from a “buy” rating to a “neutral” rating and cut their target price for the stock from $25.00 to $15.00 in a research report on Monday, January 12th. Barclays downgraded shares of Rapid7 from an “equal weight” rating to an “underweight” rating and decreased their price objective for the stock from $18.00 to $15.00 in a research note on Monday, January 5th. Finally, Zacks Research lowered 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, three have given a Buy rating, fifteen have given a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus target price of $17.58.

Rapid7 Trading Down 3.4%

Shares of RPD stock opened at $10.39 on Wednesday. The company 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 current ratio of 1.19, a quick ratio of 1.19 and a debt-to-equity ratio of 7.01. The business’s 50 day moving average is $14.00 and its two-hundred day moving average is $16.95. Rapid7 has a twelve month low of $10.20 and a twelve month high of $38.47.

Rapid7 (NASDAQ:RPD) last issued its quarterly 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 firm 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 for the quarter was up .5% on a year-over-year basis. During the same period last year, the company 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 forecast that Rapid7 will post 0.35 EPS for the current year.

Insiders Place Their Bets

In other Rapid7 news, CEO Corey E. Thomas bought 14,500 shares of Rapid7 stock in a transaction that occurred on Monday, November 24th. The stock was purchased at an average cost of $13.82 per share, for a total transaction of $200,390.00. Following the completion of the acquisition, the chief executive officer owned 595,066 shares of the company’s stock, valued at approximately $8,223,812.12. This represents a 2.50% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Thomas E. Schodorf purchased 6,300 shares of the company’s stock in a transaction on Wednesday, November 26th. The stock was bought at an average cost of $15.70 per share, for a total transaction of $98,910.00. Following the acquisition, the director directly owned 34,440 shares of the company’s stock, valued at $540,708. This represents a 22.39% increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last three months, insiders purchased 67,345 shares of company stock worth $1,025,202. Company insiders own 2.40% of the company’s stock.

Hedge Funds Weigh In On Rapid7

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. lifted its holdings in shares of Rapid7 by 7.6% in the fourth quarter. Vanguard Group Inc. now owns 9,273,763 shares of the technology company’s stock valued at $140,961,000 after purchasing an additional 653,498 shares in the last quarter. JANA Partners Management LP lifted its stake in Rapid7 by 13.5% in the 3rd quarter. JANA Partners Management LP now owns 6,502,108 shares of the technology company’s stock worth $121,915,000 after acquiring an additional 772,194 shares in the last quarter. Penserra Capital Management LLC boosted its position in Rapid7 by 45.3% during the 2nd quarter. Penserra Capital Management LLC now owns 2,731,192 shares of the technology company’s stock worth $63,172,000 after acquiring an additional 851,108 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in shares of Rapid7 by 1.6% in the 3rd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 2,170,876 shares of the technology company’s stock valued at $40,716,000 after purchasing an additional 34,438 shares during the period. Finally, First Trust Advisors LP lifted its position in shares of Rapid7 by 1.6% in the third quarter. First Trust Advisors LP now owns 1,568,047 shares of the technology company’s stock worth $29,401,000 after purchasing an additional 24,277 shares in the last quarter. Institutional investors and hedge funds own 95.66% of the company’s stock.

Rapid7 News Roundup

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.