Barclays Issues Pessimistic Forecast for Rapid7 (NASDAQ:RPD) Stock Price

Rapid7 (NASDAQ:RPD) had its price target reduced by analysts at Barclays from $15.00 to $8.00 in a report released on Thursday,Benzinga reports. The firm presently has an “underweight” rating on the technology company’s stock. Barclays‘s target price points to a potential upside of 8.92% from the company’s previous close.

Other equities analysts also recently issued reports about the company. Needham & Company LLC reiterated a “hold” rating on shares of Rapid7 in a research report on Wednesday. Susquehanna set a $15.00 target price on shares of Rapid7 in a report on Thursday, November 6th. UBS Group reaffirmed a “neutral” rating and set a $9.00 price target on shares of Rapid7 in a research note on Wednesday. Weiss Ratings reiterated a “sell (d)” rating on shares of Rapid7 in a report on Monday, December 29th. Finally, Canaccord Genuity Group set a $10.00 price target on shares of Rapid7 and gave the company a “hold” rating in a research report on Wednesday. Two investment analysts have rated the stock with a Buy rating, seventeen have given a Hold rating and three have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Reduce” and a consensus target price of $13.50.

Rapid7 Stock Performance

Shares of NASDAQ RPD traded down $0.04 during midday trading on Thursday, reaching $7.35. 384,917 shares of the company were exchanged, compared to its average volume of 1,389,048. The stock has a fifty day simple moving average of $13.83 and a 200 day simple moving average of $16.88. 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 stock has a market cap of $480.95 million, a P/E ratio of 20.50 and a beta of 0.79. Rapid7 has a 1 year low of $7.16 and a 1 year high of $36.45.

Rapid7 (NASDAQ:RPD) last announced its quarterly earnings data on Tuesday, February 10th. The technology company reported $0.44 earnings per share for the quarter, beating analysts’ consensus estimates of $0.40 by $0.04. The company had revenue of $217.39 million for the quarter, compared to analyst estimates of $215.17 million. Rapid7 had a return on equity of 55.81% and a net margin of 2.72%.The firm’s revenue for the quarter was up .5% compared to the same quarter last year. During the same quarter in the previous year, the company 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. On average, research analysts forecast that Rapid7 will post 0.35 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, Director Thomas E. Schodorf purchased 6,300 shares of the stock in a transaction dated Wednesday, November 26th. The shares were purchased at an average cost of $15.70 per share, with a total value of $98,910.00. Following the completion of the acquisition, the director owned 34,440 shares in the company, valued at $540,708. This represents a 22.39% increase in their position. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, CEO Corey E. Thomas acquired 14,500 shares of Rapid7 stock in a transaction that occurred on Monday, November 24th. The shares were purchased at an average cost of $13.82 per share, with a total value of $200,390.00. Following the purchase, the chief executive officer owned 595,066 shares of the company’s stock, valued at $8,223,812.12. This represents a 2.50% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders acquired 67,345 shares of company stock valued at $1,025,202 over the last ninety days. Insiders own 2.40% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the company. Sound Income Strategies LLC bought a new stake in Rapid7 during the fourth quarter valued at $40,000. CI Investments Inc. raised its stake in shares of Rapid7 by 48.4% during the third quarter. CI Investments Inc. now owns 2,281 shares of the technology company’s stock valued at $43,000 after acquiring an additional 744 shares during the last quarter. Abich Financial Wealth Management LLC bought a new position in Rapid7 in the 3rd quarter worth about $44,000. Headlands Technologies LLC purchased a new stake in shares of Rapid7 during the 2nd quarter valued at about $44,000. Finally, Parallel Advisors LLC raised its holdings in shares of Rapid7 by 81.6% during the fourth 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. 95.66% of the stock is currently owned by hedge funds and other institutional investors.

Key Rapid7 News

Here are the key news stories impacting Rapid7 this week:

• Positive Sentiment: Q4 results beat consensus on the headline metrics: $0.44 EPS vs. $0.40 expected and $217.4M revenue vs. ~$215M expected — showing the business can still deliver beats on the quarter. Rapid7 Q4 / FY2025 Results
• Positive Sentiment: Solid cash and cash-equivalents and free cash flow: FY‑2025 free cash flow ~$130M and total cash & short‑term investments remain a meaningful liquidity cushion. Quiver Quant Summary
• Neutral Sentiment: Business momentum and product progress: continued ARR (annualized recurring revenue) of $840M, new MDR integration with Microsoft, ARMO partnership and partner awards — these validate the AI/MDR strategy but haven’t yet driven faster ARR growth. Partner of the Year Awards
• Negative Sentiment: Weak forward guidance was the main catalyst: Q1‑2026 revenue guidance ($207M–$209M) and EPS ($0.29–$0.32) were below Street revenue/eps expectations, and FY‑2026 revenue guidance ($835M–$843M) came in well below consensus — investors reacted to the decelerating top‑line outlook. RPD Q4 Deep Dive: Flat Sales, AI Investments, and Weak Guidance Shape Outlook
• Negative Sentiment: Growth concerns: ARR was flat year‑over‑year and full‑year revenue rose only ~2% — investors worried this points to stagnation in subscription growth despite product/partnership momentum. Rapid7 Results & Metrics
• Negative Sentiment: Analyst reactions amplified the sell‑off: multiple firms trimmed targets or reaffirmed neutral/hold (RBC, Mizuho, Scotiabank, Truist, UBS) citing the weak guide and growth outlook — these cuts increased selling pressure on the stock. Benzinga: analyst updates The Fly: UBS on RPD

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.