Rapid7 shares face pressure as billionaire investors reduce holdings amid leadership changes and weak growth outlook.
Billionaire investors slashed their stake in Rapid7 (NASDAQ:RPD) from $195.91 million in Q4 2025 to $83.70 million in Q1 2026, a $112.22 million decline. The reduction coincides with leadership changes and persistent analyst concerns over the company’s growth trajectory.
DA Davidson analyst Rudy Kessinger raised his price target to $6.50 from $5.25 but maintained an “Underperform” rating after Rapid7 announced CEO Corey Thomas’s transition to Executive Chairman. Barclays previously cut its price target to $6.50 from $8, citing weaker-than-expected Q2 net new annual recurring revenue guidance.
Rapid7, which provides AI-powered cybersecurity solutions, has faced skepticism over its virtual machine business and negative annual run-rate growth projections. The stock remains under pressure despite the leadership shift.