Rapid7 (NASDAQ: RPD) saw its shares plummet 13.37% in intraday trading on Wednesday, continuing a downward trend that began after the company's third-quarter earnings release. Despite reporting better-than-expected Q3 results, investors appear to be focusing on other factors affecting the cybersecurity firm's outlook.

The sharp decline comes in the wake of several analyst actions. JPMorgan, Morgan Stanley, Truist, Mizuho, Stifel, and Citigroup all cut their price targets for Rapid7. Notably, Jefferies downgraded the stock from Buy to Hold, adjusting its price target to $19 from $22. These moves signal reduced confidence in the company's near-term prospects, despite its recent performance.

Adding to investor concerns, Rapid7 announced a leadership change, with Rafe Brown set to take over as Chief Financial Officer on December 1, 2025, replacing current CFO Tim Adams. This transition may be creating uncertainty about the company's financial strategy going forward. Furthermore, while Rapid7 beat Q3 expectations with an adjusted net income of $41.91 million and basic earnings per share (EPS) of $0.15, concerns about future guidance and competitive pressures in the cybersecurity sector seem to be weighing heavily on investor minds. The sharp decline in stock price underscores the importance of forward-looking guidance and market expectations in determining a company's stock performance, even in the face of strong quarterly results.