Conclusion, Investment Implications, Strategy
RealPage, Inc. (RP) appears to be resuming its March advance following a 15% correction from the June highs. A sustained rise above the $59.62 area would help confirm this and target a 13% rise to $69.79. This is an Asbury Value idea.
Analysis and Rationale
RealPage, Inc. (RP) provides software and data analytics for the real estate industry in the United States. RealPage, Inc. was founded in 1998 and is headquartered in Richardson, Texas.
Chart 1 below plots RP daily since January, highlighting its current retest of major underlying support at its 200-day moving average following a 15% corrective decline from the Jun 23rd high. Not shown is that a number of market internals are starting to improve as RP has been testing this major support, currently at $59.62, over the past two weeks.
A sustained rise above the $59.62 area would target a retest of $69.79.
Chart 1
Table 1 below shows that considering the aforementioned upside target and a protective stop placed below the $59.55 area, a long entry price of $61.98 would provide a 1:3.2 risk/reward ratio (risking $1.00 to make $3.20) with an initial risk of 3.9%.
Table 1
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Please consult the table showing our Asbury 6 key market metrics to help determine if this investment is suitable for you.