Rapid7 stock hits 52-week low at $27.93 amid market challenges

In a turbulent market environment, Rapid7 Inc (NASDAQ: NASDAQ:RPD) stock has touched a 52-week low, dipping to $27.93. The cybersecurity solutions provider, with a market capitalization of $1.81 billion, has demonstrated solid revenue growth of 8.53% over the last twelve months, despite recent market pressures. According to InvestingPro analysis, the stock’s RSI indicates oversold territory. This price level reflects a significant downturn for the cybersecurity solutions provider, which has seen its stock price struggle amidst broader industry and economic pressures. Over the past year, Rapid7’s shares have experienced a steep decline, with the 1-year change data revealing a substantial drop of nearly 48%. Investors are closely monitoring the company’s performance as it navigates through these challenging times, looking for signs of recovery or further indicators of market headwinds that could impact the stock’s trajectory. For deeper insights into Rapid7’s valuation and growth prospects, InvestingPro subscribers can access 15+ additional exclusive ProTips and a comprehensive Pro Research Report, part of the platform’s coverage of 1,400+ US stocks.

In other recent news, Rapid7 reported fourth-quarter revenue of $216.26 million, exceeding analyst estimates of $212.17 million, with a 5% year-over-year growth. However, the company’s guidance for the first quarter and full year 2025 fell short of Wall Street expectations, with projected revenues of $207-209 million and $860-870 million, respectively, compared to estimates of $214.35 million and $886.25 million. Rapid7’s annual recurring revenue (ARR) increased by 4% year-over-year to $839.8 million, although this was slightly below consensus estimates. Analysts from DA Davidson, Mizuho (NYSE:MFG), Citi, and Jefferies have adjusted their price targets for Rapid7, citing mixed financial results and strategic investments that may impact short-term profitability. DA Davidson and Mizuho both maintained a Neutral rating while lowering their price targets to $35 and $39, respectively. Meanwhile, Citi and Jefferies maintained a Buy rating, with Citi reducing its target to $44 and Jefferies to $45, noting potential growth opportunities despite current challenges. The company continues to focus on its Detection and Response segment, which is expanding at a mid-teens rate and is now a primary growth area. Rapid7’s management has acknowledged the need for additional investments in Managed Detection and Response capabilities, which is expected to affect operating margins and earnings per share.

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