Rapid7 Inc. (NASDAQ: RPD) shares fell back in value Tuesday Nov 22 with slower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, The Dow Jones Industrial Average opened opened higher, trading above 19,000 for the first time ever, while the S&P 500 traded above 2,200 shortly after the opening bell on Tuesday.
The S&P 500 SPX, +0.17% opened 5 points, or 0.2%, higher at 2,202. The Dow Jones Industrial Average DJIA, +0.20% added 45 points, or 0.2%, to 19,002. The Nasdaq Composite COMP, +0.25% began the session up 16 points, or 0.3%, at 5,385.
Analysts at Zacks Investment Research upgraded shares of Rapid7 Inc. (NASDAQ: RPD) from Sell to Hold today. With a rating of Hold on the shares, Rapid7 Inc. has a 52-week high of $19.34. As a means of comparison, a number of other analysts have commented on the company recently, and Rapid7 Inc. has secured a consensus one-year price target of $18.75, higher than the opening price of $11.83, a difference of 16.30 percent. Share prices sometimes get a bounce to the upside when analysts upgrade a stock.
Shares of Rapid7 Inc. (NASDAQ: RPD) opened at $11.83 on Tuesday trading between $11.48 and $11.85, and last traded at $11.50, a dip of $0.36 per share or -3.00% over the previous closing price.
Rapid7 Inc. (NASDAQ: RPD) now has a market cap of 472.74M.
Rapid7 Inc. (NASDAQ: RPD) Average Daily Trading Volume
The stock’s average daily volume is 244,609 shares out of a total float 16,233,000 and some 15,616 shares crossed the trading desk yesterday, lower than the norm. Look for trading volume to pick up in the coming days as momentum traders often use upticks in trading volume to identify substantial volume growth or circulation by institutional investors.
As with all possible breakouts, investors watch for volume to be at least 40%-50% greater than normal on the breakout to show that fund managers and other professional investors are jumping in.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these retain teams of analysts that investigate thousands of stocks, so it is good validation to see them taking a postion in a stock you’re considering.
Rapid7 Inc. (NASDAQ: RPD) Moving Averages
A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.
This is because the average acts like a floor (support), so the price bounces up off of it.
In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.
By spotting trends, moving averages allow investors to make those trends work in their favor and increase the number of successful trades.
Trades for Rapid7 Inc. (NASDAQ: RPD) have ranged from $9.05 – 19.340, and the stock now has a 50-day MA of $14.49 and 200-day MA of $14.52. Today’s last price is 40.56%% below the 52 week high of $19.34.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors seek companies that have raised their earnings by at least 25% for a 3 year period.
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