Rapid7, Inc. (RPD): Wait Before Wading In

Some analysts have a lowest price target on Rapid7, Inc. (NASDAQ:RPD) of $40, which would mean a -12.84% gain in value. The closing share price quoted for February 11, 2019 was $45.89. The 3.15% rally might have been tempting for an investor to buy at this point and in fact that would prove a good idea, as sell-side analysts think there is almost 13.31% more gain yet to come for shareholders. Analysts seemed to set $52 as highest price target on its way to greater gains. The stock enjoyed an overall uptrend of 47.27% from the beginning of 2019. The average 12-month price target they expect from the stock is $46.07. This mean price target represents 0.39% upside over its previous closing price. The median price target they presented was $48 for the next 12-months, which suggests a 4.6% upside from current levels.

A fresh roundup today notes that RPD stock has added around 98.14% of its value in the past 12 months, suggesting more investors have expressed joy over about in that time period. The stock registered its 52-week high of $45.17 on February 11 and its 52-week low of $21.33 on February 12. Currently, the shares are trading $8.88 above its YTD moving average of $37.01.

To help you decide whether it’s worth the wait (and the money), Rapid7, Inc. (NASDAQ:RPD) is currently trading at 0X the company’s trailing-12-month earnings per share. The most popular method for valuing a stock is to study the historic Price-to-Earnings (P/E) ratio using reported earnings for the past 12 months. The EPS number for this stock in the most recent four quarters of earnings stood at $-1.23. P/E ratio is so popular because it’s simple, it’s effective, and, tautologically, because everyone uses it.

The 14-day Absolute ATR (Average True Range) on Monday, February 11 of 2019 shows that the price on average moves $1.75. The average daily volatility is 4.44% over the past week. Low volatility is good for the stock and it means we have calm and confident investors. If you check recent Rapid7, Inc. (RPD) volume, you will see that it has changed to 1.08 million shares versus the average daily volume of 590.24 thousand shares.

When you look at the daily chart for RPD, you will observe the stock held 39.53% gains in the 6-month period and maintains 115.14% distance from its most recent low. The past 5-day performance for the share stays positive at 12.81% but up 21.01% from its three-week moving average. Comparing to 50-day SMA, Rapid7, Inc. shares price is now up 34.3%. It also closed 38.71% higher from its 200-day SMA. This is often seen as the last line of defense for long term trends to find support at, else be considered broken and/or in a bear market. The daily chart of the stock more clearly reveals the slide in prices as it closed Monday with a 1-month performance at 28.94%.