Why Are Rapid7 (RPD) Shares Soaring Today

Adam Hejl /
2024/01/29 12:59 pm EST

What Happened:

Shares of cybersecurity software maker Rapid7 (NASDAQ:RPD) jumped 5.4% in the morning session after UBS analyst Roger Boyd upgraded the stock's rating from Neutral to Buy and raised its price target from $53 to $70. The new price target represents a potential 20% upside from where shares traded when the upgrade was announced.

Is now the time to buy Rapid7? Access our full analysis report here, it's free.

What is the market telling us:

Rapid7's shares are quite volatile and over the last year have had 18 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business. 

The biggest move we wrote about over the last year was 10 months ago, when the stock gained 6.9% on the news that the company's board may have picked a preferred bidder amid takeover chatter. In January 2023, Reuters reported that the company was in the early stages of considering a potential sale and had sought Goldman Sachs for guidance.

Rapid7 is up 4.1% since the beginning of the year, and at $57.34 per share it is trading close to its 52-week high of $59.58 from December 2023. Investors who bought $1,000 worth of Rapid7's shares 5 years ago would now be looking at an investment worth $1,530.

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