Rapid7 Inc. (NASDAQ: RPD) shares slid back in value Tuesday Dec 6 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, U.S. stocks looked for direction on Tuesday with the Dow industrials trying for a fresh record a day after closing at an all-time high in the previous session.
The Dow Jones Industrial Average DJIA, -0.08% opened little-changed at 19,221, the S&P 500 index SPX, -0.01% climbed 2 points, or 0.1%, at 2,206, while the Nasdaq Composite Index COMP, +0.20%
Analysts at Zacks Investment Research upgraded shares of Rapid7 Inc. (NASDAQ: RPD) from Sell to Hold today. With a rating of Hold on the stock, the company has a 52-week high of $19.29. As a means of comparison, a number of other analysts have issued reports on the company in recent days, and the company has secured a consensus one-year price target of $18.44, higher than the opening price of $12.35. Stock prices often trend to the upside on recommendations and new price targets of professional brokerage firms.
Shares of Rapid7 Inc. (NASDAQ: RPD) opened at $12.35 on Tuesday trading between $12.06 and $12.35, and last traded at $12.25, a dip of $0.04 per share or -0.33% compared to the previous closing price.
Rapid7 Inc. (NASDAQ: RPD) now has a market cap of 503.79M.
Rapid7 Inc. (NASDAQ: RPD) Average Daily Trading Volume
The stock’s average daily volume is 225,770 shares out of a total float 16,226,000 and some 19,048 shares traded hands yesterday, below normal. Swing traders often use swings in trading volume to determine heavy volume aggregation or dissemination by institutional investors, so trading volume is likely to increase in the next few days.
While an increase in trading for short periods will not mean much, however, a trend of heavy trading volume on the buy side over a period of days or weeks sends a positive cue to market traders that institutions may be moving in, so institutional sponsorship is crucial.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors have teams of analysts that research thousands of stocks, so it is good corroboration to see them taking a postion in a stock you are 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.
Traders are able to make make educated trades when they follow the activity of professional investors.
With that in mind, Rapid7 Inc. (NASDAQ: RPD) now has a 50-day MA of $13.18 and 200-day MA of $14.57. It has traded in a 52-week range between $9.05 – 19.29 and today’s last price is 36.50%% lower than 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 identify companies that have raised their earnings by at least 25% over 3 consecutive years.
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