Shares of Rapid7 Inc. (NASDAQ: RPD) were downgraded by analysts at Zacks Investment Research in a note to itheir nvestors today. For comparison, a number of other analysts have commented on the company recently, and the company currently has a consensus one-year price target of $19.71, higher than the opening price of $19.10, a difference of 0.61 percent.
Share prices sometimes get a bounce to the upside when analysts reiterate coverage.
Downgrades occur when analysts feel that the future prospects for the security have weakened from the original recommendation, usually due to a material and fundamental change in the company’s operations, future outlook or industry.
Meanwhile, all three major indices posted gains on Monday, after taking the weekend to digest statements made by Fed Chairwoman Janet Yellen on Friday concerning monetary policy, namely, interest rate hikes for the remainder of 2016.
The Dow Jones Industrial Average DJIA, +0.58% gained 107.59 points, or 0.6%, to close at 18,502.99.
The S&P 500 index SPX, +0.52% rose 11.34 points, or 0.5%, to settle at 2,180.38.
Meanwhile, the Nasdaq Composite Index COMP, +0.26% added 13.41 points, or 0.3%, to close at 5,232.33.
However not all traders are at peace with Yellen’s comments.
U.S. stocks have searched for direction so far today, with investors playing a waiting game in the run-up to the key jobs report later this week, as they consider the prospects for an interest rate rise.
Shares of Rapid7 Inc. (NASDAQ: RPD) opened at $19.10 and traded in a range between, $19.01 and $19.29 yesterday, and last traded at $19.05, which represents a change of $ 0.03 over the previous closing price.
Rapid7 Inc. (NASDAQ: RPD) currently has a market cap of 774.06M
By tracking the activity of these professional investors—and the moving averages they affect—it allows for traders to make more effective decisions on trades.
With that in mind Rapid7 Inc. (NASDAQ: RPD) now has a 50-day MA is $15.03 and 200-day MA is $13.41, and it has traded in a 52-week range between $9.05 – 25.19 and yesterday’s last price was -24.37 percent off the 52 week high of $25.19.
The stocks average daily volume is 263,889 shares out of a total float 15,789,000 of and some 28,461 shares traded hands yesterday, 48 percent lower than normal. Look for trading volume to pick up in the coming days as investors often use increases in trading volume to identify heavy volume accumulation or distribution by institutional investors.
While increased trading for short periods will not mean much 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 signal to market traders that institutions may be moving in, so institutional sponsorship is very important.
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 substantial teams of analysts that research thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.
Earnings growth is an important factor to consider when buying stocks and investors look for companies that have grown their earnings at least 25% or more for the past 3 years.
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of BNB Daily News. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please see our terms and conditions page.