IPO Check-In: The Cybersecurity Stock on Fire and the Disappointing Telecom Debut

Rapid7 Inc (RPD) is leading the IPO freshmen class today

Jul 17, 2015 at 2:47 PM
facebook twitter linkedin


It's been a busy couple of days for initial public offerings (IPOs). Yesterday, Ollie's Bargain Outlet Holdings Inc (NASDAQ:OLLI) and ProNAi Therapeutics Inc (NASDAQ:DNAI) joined the Nasdaq party, and today Wall Street was introduced to cybersecurity firm Rapid7 Inc (NASDAQ:RPD), boat maker MCBC Holdings Inc (NASDAQ:MCFT), and Internet-based telecom concern Ooma Inc (NYSE:OOMA). Let's check in on the babes. 

RPD priced its IPO at $16 per share, above the $13-to-$15 expected range, and skyrocketed out of the gate. The stock, which opened at $26.75, was last seen 55% higher at $24.78, and touched an intraday peak of $27.45 -- a 72% mark-up to its IPO price, valuing Rapid7 Inc at roughly $1 billion. The equity's surge is drawing comparisons to fellow cybersecurity name Cyberark Software Ltd (NASDAQ:CYBR), which has tripled since going public in September. 

MCFT priced its IPO at $15 per share, near the top end of its expected range. The stock opened at $15.50, and peaked at $16.14. MCBC Holdings Inc -- which will ring the Nasdaq closing bell today -- was last seen 5.3% higher at $15.79. 

Finally, OOMA is lagging its fellow freshmen. The stock priced its IPO at $13 per share, falling well short of the expected $16-to-$18 range. The equity opened at $12.10, and touched an intraday low of $10.75, valuing the firm at less than $200 million. At last check, OOMA was down 15% at $11.07.
 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

 
Schaeffer's Daily Bulletin Offer
 


 


 
Special Offers from Schaeffer's Trading Partners