Stock Traders Purchase High Volume of Rackspace Technology Put Options (NASDAQ:RXT)

Rackspace Technology, Inc. (NASDAQ:RXT) was the recipient of unusually large options trading on Tuesday. Stock traders purchased 1,891 put options on the company. This is an increase of approximately 2,324% compared to the typical daily volume of 78 put options.

In related news, Director Timothy Campos sold 11,992 shares of the firm’s stock in a transaction dated Friday, July 16th. The shares were sold at an average price of $19.17, for a total value of $229,886.64. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CTO Tolga Tarhan sold 30,705 shares of the firm’s stock in a transaction dated Thursday, May 13th. The shares were sold at an average price of $18.23, for a total transaction of $559,752.15. Following the completion of the sale, the chief technology officer now owns 76,578 shares of the company’s stock, valued at approximately $1,396,016.94. The disclosure for this sale can be found here. In the last three months, insiders have purchased 14,798 shares of company stock worth $274,954 and have sold 71,318 shares worth $1,395,116. Company insiders own 0.76% of the company’s stock.

Several institutional investors and hedge funds have recently modified their holdings of RXT. Bank of New York Mellon Corp increased its stake in shares of Rackspace Technology by 6.3% during the 4th quarter. Bank of New York Mellon Corp now owns 231,785 shares of the company’s stock worth $4,419,000 after purchasing an additional 13,772 shares in the last quarter. Rhumbline Advisers grew its stake in Rackspace Technology by 23.8% in the 4th quarter. Rhumbline Advisers now owns 42,112 shares of the company’s stock worth $803,000 after acquiring an additional 8,098 shares during the period. Steward Partners Investment Advisory LLC purchased a new stake in Rackspace Technology in the 4th quarter worth approximately $38,000. Citigroup Inc. grew its stake in Rackspace Technology by 196.5% in the 4th quarter. Citigroup Inc. now owns 25,022 shares of the company’s stock worth $477,000 after acquiring an additional 16,583 shares during the period. Finally, Northern Trust Corp grew its stake in Rackspace Technology by 1.8% in the 4th quarter. Northern Trust Corp now owns 444,279 shares of the company’s stock worth $8,467,000 after acquiring an additional 7,647 shares during the period. 88.23% of the stock is owned by institutional investors and hedge funds.

Shares of RXT opened at $19.20 on Thursday. The company has a debt-to-equity ratio of 2.76, a quick ratio of 1.12 and a current ratio of 1.12. The stock’s 50 day simple moving average is $19.97. Rackspace Technology has a 1-year low of $15.25 and a 1-year high of $26.43. The stock has a market cap of $3.99 billion and a PE ratio of -14.01.

Rackspace Technology (NASDAQ:RXT) last issued its quarterly earnings data on Monday, May 10th. The company reported $0.23 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.21 by $0.02. Rackspace Technology had a negative net margin of 9.41% and a positive return on equity of 14.18%. The business had revenue of $725.90 million during the quarter, compared to analysts’ expectations of $724.67 million. During the same period last year, the company posted $0.16 EPS. The company’s revenue was up 11.2% on a year-over-year basis. On average, equities analysts expect that Rackspace Technology will post 1 earnings per share for the current year.

RXT has been the subject of a number of recent analyst reports. William Blair initiated coverage on shares of Rackspace Technology in a research report on Wednesday, March 31st. They issued an “outperform” rating for the company. Zacks Investment Research downgraded shares of Rackspace Technology from a “hold” rating to a “sell” rating in a research report on Thursday, July 8th. Raymond James upgraded shares of Rackspace Technology from an “outperform” rating to a “strong-buy” rating in a research report on Tuesday, May 18th. Finally, reiterated a “buy” rating and set a $28.00 price target on shares of Rackspace Technology in a research report on Tuesday, June 29th. One research analyst has rated the stock with a sell rating, twelve have given a buy rating and one has assigned a strong buy rating to the company’s stock. The stock has a consensus rating of “Buy” and a consensus target price of $27.96.

Rackspace Technology Company Profile

Rackspace Technology, Inc operates as a multi cloud technology services company worldwide. It operates through Multicloud Services and Apps & Cross Platform segments. The company's Multicloud Services segment provides public and private cloud managed services, which allow customers to determine, manage, and optimize the right infrastructure, platforms, and services; and professional services related to designing and building multi cloud solutions and cloud-native applications.

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