Rapid7's perfect earnings beat streak and strong cash conversion are increasingly offset by falling analyst estimates, a confirmed price downtrend, and a negative risk-adjusted asymmetry ratio, consistent with a call to consider reducing the position.
Thesis pillars
- Excellent Cash Conversion Despite Quality Gaps→Stable
- Perfect Earnings Beat Streak↓Deteriorating
- Falling Analyst Estimates↓Deteriorating
- +1 more pillar — see the Why tab for full reasoning
Rapid7, Inc. (RPD) Stock Analysis
Breakout setup
Technology · Software - Infrastructure
Sell if holding. Analyst target reached at $11.62 — A.R:R is negative (-0.6) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: V7 low-quality RISK_OFF penalty: -0.5 (Q=4.3).
Rapid7 is a global cybersecurity operations software provider whose Command Platform unifies exposure management, threat detection, and managed detection and response (MDR) services for security operations teams. The company generated $859.8 million in revenue in 2025, up from... Read more
Sell if holding. Analyst target reached at $11.62 — A.R:R is negative (-0.6) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: V7 low-quality RISK_OFF penalty: -0.5 (Q=4.3). Chart setup: Golden cross, above all MAs, RSI 55, MACD bullish. Score 4.5/10, high confidence.
Passes 5/9 gates (positive momentum, clean insider activity, earnings proximity 38d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio and news legal. Suitability: speculative.
Recent developments
updated 2026-09-26Recent Developments — Rapid7, Inc.
Latest news
- NEWS RPD|Rapid7 Inc|Price:10.385|Chg%:-0.475 - TradingKey — TradingKey neutral
- NEWS RPD|Rapid7 Inc|Price:10.385|Chg%:-0.475 - tradingkey.com — tradingkey.com negative
- NEWS Rapid7, Inc. 2026 Q2 - Results - Earnings Call Presentation (NASDAQ:RPD) 2026-08-10 - Seeking Alpha — Seeking Alpha neutral
- NEWS Rapid7 Inc (RPD) Stock Price & News - Google Finance - Google — Google neutral
- NEWS Bandwidth, Rapid7, Atlassian, RingCentral, and CrowdStrike Shares Skyrocket, What You Need To Know - StockStory — StockStory positive
Generated 2026-09-26T16:02:03Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Material Events(8-K, last 90d)
- 2026-06-01Item 5.02MEDIUMBoard appointed Wael Mohamed as CEO effective June 1, 2026, succeeding Corey Thomas, who becomes Executive Chairman; both continue serving as directors. Clean handoff with a named successor.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
2 floor-breakers
Revenue shrinking — -1.5% YoY. Growth thesis broken unless recovery story develops.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Analyst target reached at $11.62 — A.R:R is negative (-0.6) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: V7 low-quality RISK_OFF penalty: -0.5 (Q=4.3). Chart setup: Golden cross, above all MAs, RSI 55, MACD bullish. Prior stop was $10.81. Score 4.5/10, high confidence.
Take-profit target: $13.34 (-9.3% upside). Prior stop was $10.81. Stop-loss: $10.81.
Analyst target reached - limited upside remaining; V7 low-quality RISK_OFF penalty: -0.5 (Q=4.3); Sector modifier (Technology): -0.8.
Rapid7, Inc. trades at a P/E of 37.5 (forward 5.7). TrendMatrix value score: 6.5/10. Verdict: Sell.
31 analysts cover RPD with a consensus score of 2.8/5. Average price target: $12.
What does Rapid7, Inc. do?Rapid7 is a global cybersecurity operations software provider whose Command Platform unifies exposure management,...
Rapid7 is a global cybersecurity operations software provider whose Command Platform unifies exposure management, threat detection, and managed detection and response (MDR) services for security operations teams. The company generated $859.8 million in revenue in 2025, up from $535.4 million in 2021 (a 13% CAGR), with recurring revenue at 96% of total revenue, serving more than 11,500 customers in 150 countries including 36% of the Fortune 100.