Scotiabank Lowers Rapid7 (NASDAQ:RPD) Price Target to $9.00

Rapid7 (NASDAQ:RPD) had its price objective dropped by equities research analysts at Scotiabank from $18.00 to $9.00 in a research note issued to investors on Wednesday,Benzinga reports. The firm currently has a “sector perform” rating on the technology company’s stock. Scotiabank’s price target would suggest a potential downside of 13.38% from the company’s current price.

A number of other research analysts have also recently commented on the company. Canaccord Genuity Group set a $10.00 price objective on Rapid7 and gave the company a “hold” rating in a report on Wednesday. Citigroup cut Rapid7 from a “buy” rating to a “neutral” rating and lowered their price target for the stock from $25.00 to $15.00 in a report on Monday, January 12th. Jefferies Financial Group set a $9.00 price objective on Rapid7 in a research report on Wednesday. JPMorgan Chase & Co. decreased their target price on shares of Rapid7 from $22.00 to $20.00 and set a “neutral” rating on the stock in a research report on Wednesday, November 5th. Finally, Zacks Research cut shares of Rapid7 from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, January 27th. One 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 issued a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $16.26.

Rapid7 Stock Down 3.4%

Shares of RPD opened at $10.39 on Wednesday. Rapid7 has a 52-week low of $10.20 and a 52-week high of $38.47. The company has a quick ratio of 1.19, a current ratio of 1.19 and a debt-to-equity ratio of 7.01. The stock has a fifty day simple moving average of $14.00 and a two-hundred day simple moving average of $16.95. The company has a market capitalization of $680.34 million, a PE ratio of 30.56 and a beta of 0.79.

Rapid7 (NASDAQ:RPD) last announced its quarterly earnings results on Tuesday, February 10th. The technology company reported $0.44 earnings per share for the quarter, beating the consensus estimate of $0.40 by $0.04. Rapid7 had a net margin of 2.61% and a return on equity of 67.30%. The firm had revenue of $217.39 million for the quarter, compared to analysts’ expectations of $215.17 million. During the same quarter in the previous year, the company posted $0.48 EPS. The company’s revenue was up .5% compared to the same quarter last year. Rapid7 has set its FY 2026 guidance at 1.500-1.600 EPS and its Q1 2026 guidance at 0.290-0.320 EPS. As a group, equities analysts forecast that Rapid7 will post 0.35 EPS for the current year.

Insider Activity

In other Rapid7 news, Director Jana Partners Management, Lp bought 41,545 shares of Rapid7 stock in a transaction on Friday, November 28th. The shares were bought at an average cost of $15.71 per share, for a total transaction of $652,671.95. Following the acquisition, the director directly owned 6,760,149 shares in the company, valued at $106,201,940.79. This represents a 0.62% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Mike Burns purchased 2,000 shares of the company’s 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 purchase, the director owned 5,000 shares of the company’s stock, valued at approximately $69,000. This represents a 66.67% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders bought 67,345 shares of company stock worth $1,025,202 over the last 90 days. Company insiders own 2.40% of the company’s stock.

Institutional Trading of Rapid7

Institutional investors have recently bought and sold shares of the business. Prudential Financial Inc. raised its position in shares of Rapid7 by 8.8% during the 2nd quarter. Prudential Financial Inc. now owns 8,513 shares of the technology company’s stock worth $197,000 after acquiring an additional 690 shares in the last quarter. Wealth Enhancement Advisory Services LLC lifted its position in shares of Rapid7 by 6.3% during the 3rd quarter. Wealth Enhancement Advisory Services LLC now owns 12,427 shares of the technology company’s stock worth $221,000 after buying an additional 732 shares during the last quarter. CI Investments Inc. boosted its holdings in shares of Rapid7 by 48.4% in the 3rd quarter. CI Investments Inc. now owns 2,281 shares of the technology company’s stock valued at $43,000 after buying an additional 744 shares in the last quarter. Nordea Investment Management AB grew its position in shares of Rapid7 by 1.0% in the 2nd quarter. Nordea Investment Management AB now owns 78,294 shares of the technology company’s stock valued at $1,808,000 after buying an additional 753 shares during the last quarter. Finally, Teacher Retirement System of Texas raised its stake in Rapid7 by 1.6% during the 2nd quarter. Teacher Retirement System of Texas now owns 54,981 shares of the technology company’s stock worth $1,272,000 after acquiring an additional 890 shares in the last quarter. 95.66% of the stock is owned by hedge funds and other institutional investors.

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

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.