Rapid7’s Chief Accounting Officer Continues Steady Insider Sell‑Offs as Stock Slumps 19% YTD

Insider Selling at Rapid7: What It Means for Shareholders

Murphy Scott M, the company’s Chief Accounting Officer, sold 406 shares of Rapid7’s common stock on January 15, 2026, at a price of $13.30 per share—just shy of the closing price the day before. The transaction, while small relative to the company’s market cap of $885 million, is part of a larger pattern of regular selling that has been unfolding over the past 18 months. In total, Scott has offloaded more than 10,000 shares since February 2025, reducing his stake from 37,254 shares in early 2025 to 24,076 after the latest sale.

A Quiet Trend of Divestiture

The timing of Scott’s sale is noteworthy. Rapid7’s stock has slid 19 % year‑to‑date and its 52‑week high has already fallen below the 2025 low. The company is awaiting Q4 2025 results, and the market has priced in a 10 % drop for the week—an indicator of lingering investor skepticism. While the sale itself is not large enough to move the market, it joins a wave of insider activity that includes the CEO, Thomas Corey, who bought 200,000 shares in December 2025 and sold 182,321 shares just 15 days later. The juxtaposition of buying and selling among top executives suggests a short‑term tactical approach rather than a long‑term strategic shift.

Implications for Investors

For investors, Scott’s consistent selling may signal a perception that Rapid7’s valuation has peaked. However, the shares he is selling are likely “restricted” or “vested” units, which can be liquidated only when tax withholding is satisfied, as noted in the footnote for this transaction. This administrative trigger, rather than an intentional market move, is common for insiders who hold large restricted‑stock award pools. Nonetheless, the cumulative effect of insider sell‑offs can reinforce a bearish narrative, especially when combined with the company’s weak quarterly momentum and a P/E of 39.2—well above the IT sector average.

Profile: Murphy Scott M

Scott entered Rapid7’s board in 2023 and has since been a frequent participant in insider filings. His sales began with a 23,280‑share purchase in February 2025, followed by a series of sell orders that peaked in August 2025 (5,461 shares) and have tapered to 406 shares in January 2026. The average price per share in his sell transactions has hovered around $18‑$21, indicating he is selling near market value. His activity is consistent with a typical accounting‑chief profile: periodic divestiture of restricted shares tied to vesting schedules rather than opportunistic trades. His shareholding has remained above 24,000, still a meaningful position but below the thresholds that trigger significant market commentary.

What Comes Next?

Rapid7’s upcoming 2025 Q4 earnings will be a key event for all stakeholders. If the company delivers stronger revenue growth or a better-than‑expected margin, it could dampen insider selling or even prompt new purchases. Conversely, a weak report could accelerate the trend, especially as the stock continues its slide. For investors, monitoring Scott’s and other insiders’ trading patterns provides a useful barometer of confidence, but they should also weigh the broader fundamentals—Rapid7’s cloud‑security partnership, its 2025 revenue guidance, and the cyclical nature of the cybersecurity industry—before making decisions.