Rapid7 granted inducement awards to Kenzo employees following its acquisition, including restricted stock units and performance-based stock units.
Quiver AI Summary
On March 26, 2026, Rapid7, Inc. announced the granting of inducement awards to employees and contractors of Kenzo Security, Inc. as part of its acquisition of Kenzo. The awards include a total of 467,945 restricted stock units (RSUs) for Kenzo personnel, with specifics for founders Harish Singh and Partha Naidu who received 525,769 performance-based restricted stock units (PSUs). The RSUs vest over three years, while the PSUs are tied to performance targets relating to annual recurring revenue, vesting over two performance periods starting in 2027. These equity awards aim to incentivize Kenzo's staff to transition and continue working with Rapid7, with the arrangement approved by Rapid7's Compensation Committee under its Equity Incentive Plan.
Potential Positives
- Rapid7's acquisition of Kenzo Security enhances its capabilities in AI-powered managed cybersecurity operations, potentially expanding its market reach and customer base.
- The inducement awards of restricted stock units (RSUs) and performance-based restricted stock units (PSUs) demonstrate Rapid7's commitment to retaining key talent from Kenzo, ensuring a smoother integration process.
- The induction of significant performance-based incentives for the founders of Kenzo aligns their success with Rapid7's future performance, likely driving motivation and commitment towards achieving the company's long-term goals.
- The unanimous approval of the awards by the independent Compensation Committee reflects good governance practices, enhancing investor confidence in Rapid7's decision-making processes.
Potential Negatives
- Granting a significant number of RSUs and PSUs as inducement awards may raise concerns among investors about the company's salary expenditures and overall financial health.
- The need to provide inducement awards for Kenzo employees could indicate potential challenges in integrating the acquired company and retaining talent post-acquisition.
- The contingent nature of the PSUs tied to performance goals adds an element of uncertainty regarding the future performance and profitability of the company.
FAQ
What is Rapid7's recent acquisition?
Rapid7 acquired Kenzo Security, Inc. on March 26, 2026, to enhance its cybersecurity operations.
What inducement awards were granted to Kenzo employees?
Rapid7 granted 467,945 restricted stock units (RSUs) and performance-based restricted stock units (PSUs) to Kenzo employees.
How do the RSUs vest for Kenzo employees?
The RSUs vest 1/3 on each of the first three anniversaries of the vesting commencement date, with continued employment required.
What are the performance criteria for PSUs?
The PSUs are based on Rapid7's achievement of Managed MDR & SIEM Annualized Recurring Revenue goals over two performance periods.
Who approved the inducement awards at Rapid7?
The inducement awards were unanimously approved by Rapid7's independent Compensation Committee under Nasdaq rules.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$RPD Insider Trading Activity
$RPD insiders have traded $RPD stock on the open market 9 times in the past 6 months. Of those trades, 5 have been purchases and 4 have been sales.
Here’s a breakdown of recent trading of $RPD stock by insiders over the last 6 months:
- PARTNERS MANAGEMENT, LP JANA purchased 41,545 shares for an estimated $652,671
- COREY E. THOMAS (CEO) purchased 14,500 shares for an estimated $200,390
- THOMAS E SCHODORF purchased 6,300 shares for an estimated $98,910
- SCOTT M MURPHY (Chief Accounting Officer) has made 0 purchases and 4 sales selling 4,227 shares for an estimated $52,866.
- MARC EVAN BROWN purchased 3,000 shares for an estimated $45,630
- MIKE BURNS purchased 2,000 shares for an estimated $27,600
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$RPD Revenue
$RPD had revenues of $217.4M in Q4 2025. This is an increase of 0.52% from the same period in the prior year.
You can track RPD financials on Quiver Quantitative's RPD stock page.
$RPD Hedge Fund Activity
We have seen 137 institutional investors add shares of $RPD stock to their portfolio, and 153 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- UBS AM, A DISTINCT BUSINESS UNIT OF UBS ASSET MANAGEMENT AMERICAS LLC removed 4,516,032 shares (-76.2%) from their portfolio in Q4 2025, for an estimated $68,643,686
- PENSERRA CAPITAL MANAGEMENT LLC added 1,357,794 shares (+50.6%) to their portfolio in Q4 2025, for an estimated $20,638,468
- MIRAE ASSET GLOBAL ETFS HOLDINGS LTD. removed 863,489 shares (-39.8%) from their portfolio in Q4 2025, for an estimated $13,125,032
- HAWK RIDGE CAPITAL MANAGEMENT LP removed 835,618 shares (-100.0%) from their portfolio in Q4 2025, for an estimated $12,701,393
- FIRST TRUST ADVISORS LP added 758,009 shares (+48.3%) to their portfolio in Q4 2025, for an estimated $11,521,736
- VANGUARD GROUP INC added 653,498 shares (+7.6%) to their portfolio in Q4 2025, for an estimated $9,933,169
- SG AMERICAS SECURITIES, LLC added 573,069 shares (+1788.2%) to their portfolio in Q4 2025, for an estimated $8,710,648
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
$RPD Analyst Ratings
Wall Street analysts have issued reports on $RPD in the last several months. We have seen 1 firms issue buy ratings on the stock, and 0 firms issue sell ratings.
Here are some recent analyst ratings:
- UBS issued a "Buy" rating on 10/21/2025
To track analyst ratings and price targets for $RPD, check out Quiver Quantitative's $RPD forecast page.
$RPD Price Targets
Multiple analysts have issued price targets for $RPD recently. We have seen 15 analysts offer price targets for $RPD in the last 6 months, with a median target of $11.5.
Here are some recent targets:
- Saket Kalia from Barclays set a target price of $8.0 on 02/12/2026
- Fatima Boolani from Citigroup set a target price of $11.5 on 02/12/2026
- Junaid Siddiqui from Truist Securities set a target price of $8.0 on 02/11/2026
- Gregg Moskowitz from Mizuho set a target price of $12.0 on 02/11/2026
- Patrick Colville from Scotiabank set a target price of $9.0 on 02/11/2026
- Adam Borg from Stifel set a target price of $9.0 on 02/11/2026
- Todd Weller from Stephens & Co. set a target price of $12.0 on 02/11/2026
Full Release
BOSTON, March 26, 2026 (GLOBE NEWSWIRE) -- Rapid7, Inc. (NASDAQ: RPD), a global leader in AI-powered managed cybersecurity operations, announced that the company granted inducement awards, effective as of March 26, 2026, to employees and contractors of Kenzo Security, Inc. (“Kenzo”) in connection with Rapid7’s acquisition of Kenzo on March 26, 2026, as a material inducement for the Kenzo employees and contractors to commence employment with Rapid7 and its subsidiaries following Rapid7’s acquisition of Kenzo.
Rapid7 granted inducement awards comprised of 467,945 restricted stock units (“RSUs”) in respect of Rapid7’s common stock, in the aggregate, to Kenzo employees and contractors. In addition to RSUs, each of Harish Singh and Partha Naidu, Kenzo’s founders, received an inducement award comprised of 525,769 performance-based restricted stock units (“PSUs”) in respect of Rapid7’s common stock (assuming maximum performance is achieved).
The RSUs vest 1/3 on each of the first three anniversaries of the vesting commencement date, subject to continued employment through the applicable vesting date. The PSUs will generally be earned over two annual performance periods beginning January 1, 2027, based on Rapid7’s attainment of Year over Year Managed MDR & SIEM Annualized Recurring Revenue goals. Earned PSUs for performance period 1 will vest 50% at the end of performance period 1 and 50% at the end of performance period 2, subject to the recipient’s continued employment through the payment date. All earned PSUs for performance period 2 will vest at the end of performance period 2, subject to the recipient’s continued employment through the payment date.
The RSUs and PSUs were granted under Rapid7’s 2015 Equity Incentive Plan, as amended (the “Equity Plan”) pursuant to the Equity Plan’s inducement award share pool. The RSUs and PSUs were unanimously approved by Rapid7’s Compensation Committee, which is independent within the meaning of Nasdaq Listing Rule 5605(a)(2), in accordance with Nasdaq Listing Rule 5635(c)(4) as a material inducement for the Kenzo employees and contractors to commence employment with Rapid7 following Rapid7’s acquisition of Kenzo.
About Rapid7
Rapid7, Inc. (NASDAQ: RPD) is a global leader in AI-powered managed cybersecurity operations, trusted to advance organizations’ cyber resilience. Open and extensible, the Rapid7 Command Platform integrates security data, enriching it with AI, threat intelligence, and 25 years of expertise and innovation to reduce risk and disrupt attackers. As a recognized leader in preemptive managed detection and response (MDR), Rapid7 unifies exposure and detection to transform the cybersecurity operations of more than 11,500 customers worldwide. For more information, visit our website , check out our blo g , or follow us on LinkedIn or X .
Rapid7 Media Relations
Alice Randall
Director, Global Communications
[email protected]
(857) 216-7804
Rapid7 Investor Contact
Matt Wells
Vice President, Investor Relations
[email protected]
(617) 865-4277
