Rapid7 Inc. (NASDAQ: RPD) shares rose in value Tuesday Nov 29 with lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
U.S. stocks on Tuesday morning traded near break-even levels, with the main benchmarks switching in and out of negative territory
The Dow Jones Industrial Average DJIA, -0.09% was flat at 19,102. Meanwhile, the Nasdaq Composite COMP, +0.00% traded 18 points, or 0.1%, at 5,362.
The S&P 500 index SPX, -0.04% was off by 0.1%, or 2 points, at 2,199, with five of the 11 main sectors trading lower.
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, the company has a 52-week high of $19.29. The one-year price target of $18.75 is above the opening price of $11.77, causing a number of other analysts to comment on the company in recent days. Usually, after analysts publish an upgrade report on a stock, they will later issue periodic revisions, such as a price target change.
Shares of Rapid7 Inc. (NASDAQ: RPD) opened at $11.77 on Tuesday and has traded in a range between, $11.77 and $12.12, and last traded at $12.01, which is a spike of $0.03 or 0.25% over the previous closing price.
Rapid7 Inc. (NASDAQ: RPD) now has a market cap of 493.92M.
Rapid7 Inc. (NASDAQ: RPD) Average Daily Trading Volume
The stock’s average daily volume is 231,458 shares out of a total float 16,226,000 and some 10,409 shares crossed the trading desk yesterday, lower than the average. Trading volume is likely to increase in the next few days as investors often use increases in trading volume to identify large volume accumulation or distribution by institutional investors.
As with all possible breakouts, investors look for volume to be at least 40%-50% above normal on the breakout to indicate that fund managers and other professional investors are jumping in.
Institutional sponsorship just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors retain substantial teams of analysts researching thousands of stocks, so it is good corroboration to see them buying a stock you’re researching.
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 identifying trends, moving averages allow traders to make those trends work in their favor and increase the number of winning trades.
Trades for Rapid7 Inc. (NASDAQ: RPD) have ranged from $9.05 – 19.29, and the stock now has a 50-day MA of $13.77 and 200-day MA of $14.55. Today’s last price is 37.74%% below the 52 week high of $19.29.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors watch for companies that have grown their earnings at least 25% or more over 3 consecutive years.
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