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Why Is Rapid7 (RPD) Stock Soaring Today


Adam Hejl /
2023/04/04 3:46 pm EDT

What Happened:

Shares of cybersecurity software maker Rapid7 (NASDAQ:RPD) jumped 6.87% in the morning session after the company's board may have picked a preferred bidder amid takeover chatter. In January, Reuters reported that the company was in the early stages of considering a potential sale and had sought Goldman Sachs for guidance.

What is the market telling us:

Rapid7's shares are quite volatile and over the last year have had 44 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. 

Rapid7 is up 35.9% since the beginning of the year, but at $47.4778 per share it is still trading 59.2% below its 52-week high of $116.47 from April 2022. Investors who bought $1,000 worth of Rapid7's shares 5 years ago would now be looking at an investment worth $1,837.2.

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