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↑Improving
- Falling Analyst Estimates↑Improving
- +1 more pillar — see the Why tab for full reasoning
Rapid7, Inc. (RPD) Stock Analysis
Range Bound setup · Catalyst-Driven edge
Technology · Software - Infrastructure
Sell if holding. Engine safety override at $9.96: Risk below floor (2.9 < 3.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.3/10. Specifically: High short interest: 13%; Elevated put/call ratio: 2.50; Below-average business quality.
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. Engine safety override at $9.96: Risk below floor (2.9 < 3.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.3/10. Specifically: High short interest: 13%; Elevated put/call ratio: 2.50; Below-average business quality. Chart setup: RSI 40 mid-range, Bollinger mid-band. Score 4.3/10, moderate confidence.
Passes 4/9 gates (clean insider activity, news events none recent, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio and death cross (50MA < 200MA). Suitability: speculative.
Recent developments
updated 2026-07-27Recent Developments — Rapid7, Inc.
Latest news
- NEWS These 7 Small Caps Are on Fire as the Second Half Begins: Here’s Why — benzinga Jul 21, 2026 positive
- NEWS Truist Securities Maintains Hold on Rapid7, Raises Price Target to $10 — benzinga Jul 21, 2026 positive
- NEWS 12 Information Technology Stocks Moving In Tuesday's Pre-Market Session — benzinga Jul 21, 2026 neutral
- NEWS Morgan Stanley Downgrades Rapid7 to Underweight, Maintains Price Target to $9 — benzinga Jul 21, 2026 negative
- NEWS Ryanair Posts Weak Q1 Results, Joins HDFC Bank And Other Big Stocks Moving Lower In Monday’s Pre-Market Session — benzinga Jul 20, 2026 negative
Generated 2026-07-27T16:47:53Z.
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
4 floor-breakers
Revenue shrinking — -0.3% YoY. Growth thesis broken unless recovery story develops.static
Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static
Volatile — 9.8% daily ATR makes tight stops impractical. Position-size conservatively.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. Engine safety override at $9.96: Risk below floor (2.9 < 3.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.3/10. Specifically: High short interest: 13%; Elevated put/call ratio: 2.50; Below-average business quality. Chart setup: RSI 40 mid-range, Bollinger mid-band. Prior stop was $9.25. Score 4.3/10, moderate confidence.
Take-profit target: $13.47 (-25.8% upside). Prior stop was $9.25. Stop-loss: $9.25.
Target reached (-25.8% upside); Risk below floor (2.9 < 3.0).
Rapid7, Inc. trades at a P/E of 27.1 (forward 6.1). TrendMatrix value score: 6.8/10. Verdict: Sell.
31 analysts cover RPD with a consensus score of 2.8/5. Average price target: $8.
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.