Rackspace Technology, Inc. (NASDAQ:RXT) Receives $2.31 Consensus Price Target from Brokerages

Rackspace Technology, Inc. (NASDAQ:RXT) has been assigned an average recommendation of “Hold” from the eight research firms that are presently covering the firm, MarketBeat Ratings reports. Two research analysts have rated the stock with a sell recommendation, four have assigned a hold recommendation and two have given a buy recommendation to the company. The average twelve-month price objective among brokers that have issued ratings on the stock in the last year is $2.31.

A number of brokerages have commented on RXT. Royal Bank of Canada reaffirmed a “sector perform” rating and issued a $3.00 price objective on shares of Rackspace Technology in a report on Wednesday, March 13th. Evercore ISI decreased their price objective on Rackspace Technology from $3.00 to $2.00 and set an “in-line” rating on the stock in a report on Wednesday, March 13th. BMO Capital Markets upped their price objective on Rackspace Technology from $1.50 to $2.50 and gave the company a “market perform” rating in a report on Wednesday, March 13th. Finally, Raymond James decreased their price objective on Rackspace Technology from $3.50 to $3.00 and set an “outperform” rating on the stock in a report on Wednesday, March 13th.

Insider Activity

In other news, CEO Amar Maletira sold 37,446 shares of the company’s stock in a transaction on Tuesday, February 20th. The stock was sold at an average price of $1.92, for a total transaction of $71,896.32. Following the completion of the sale, the chief executive officer now directly owns 4,638,423 shares in the company, valued at approximately $8,905,772.16. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. In related news, CEO Amar Maletira sold 37,446 shares of the company’s stock in a transaction on Tuesday, February 20th. The stock was sold at an average price of $1.92, for a total transaction of $71,896.32. Following the completion of the sale, the chief executive officer now directly owns 4,638,423 shares in the company, valued at approximately $8,905,772.16. The sale was disclosed in a filing with the SEC, which is available through this link. Also, EVP Brian Lillie sold 139,701 shares of the stock in a transaction dated Thursday, January 25th. The shares were sold at an average price of $1.62, for a total value of $226,315.62. Following the completion of the sale, the executive vice president now directly owns 1,608,258 shares of the company’s stock, valued at approximately $2,605,377.96. The disclosure for this sale can be found here. In the last three months, insiders sold 189,463 shares of company stock worth $318,164. 1.00% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Rackspace Technology

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Goldman Sachs Group Inc. increased its stake in shares of Rackspace Technology by 52.2% in the fourth quarter. Goldman Sachs Group Inc. now owns 713,327 shares of the company’s stock valued at $1,427,000 after buying an additional 244,748 shares during the period. Virtu Financial LLC acquired a new stake in Rackspace Technology during the fourth quarter worth approximately $26,000. Public Employees Retirement System of Ohio grew its stake in Rackspace Technology by 1,704.8% during the fourth quarter. Public Employees Retirement System of Ohio now owns 102,568 shares of the company’s stock worth $205,000 after purchasing an additional 96,885 shares during the period. Barclays PLC grew its stake in Rackspace Technology by 132.2% during the fourth quarter. Barclays PLC now owns 117,063 shares of the company’s stock worth $235,000 after purchasing an additional 66,642 shares during the period. Finally, CastleKnight Management LP acquired a new stake in Rackspace Technology during the fourth quarter worth approximately $1,201,000. Institutional investors and hedge funds own 82.48% of the company’s stock.

Rackspace Technology Trading Up 3.3 %

RXT stock opened at $1.57 on Friday. The firm has a market capitalization of $345.02 million, a PE ratio of -0.40 and a beta of 1.94. Rackspace Technology has a 1-year low of $1.05 and a 1-year high of $3.10. The business’s 50 day simple moving average is $1.79 and its 200 day simple moving average is $1.66.

Rackspace Technology (NASDAQ:RXT) last issued its quarterly earnings data on Tuesday, March 12th. The company reported ($0.03) EPS for the quarter, beating analysts’ consensus estimates of ($0.04) by $0.01. Rackspace Technology had a negative return on equity of 10.18% and a negative net margin of 28.33%. The firm had revenue of $720.00 million for the quarter, compared to analyst estimates of $714.74 million. During the same period in the prior year, the firm posted $0.06 EPS. The company’s revenue for the quarter was down 8.5% on a year-over-year basis. As a group, sell-side analysts predict that Rackspace Technology will post -0.38 EPS for the current fiscal year.

About Rackspace Technology

Rackspace Technology, Inc operates as a multi cloud technology services company in the Americas, Europe, the Middle East, Africa, and The Asia-Pacific region. It operates through three segments: Multicloud Services, Apps & Cross Platform, and OpenStack Public Cloud. The company provides public and private cloud managed services, which allow customers to determine, manage, and optimize the right infrastructure, platforms, and services; professional services related to designing and building multi cloud solutions and cloud-native applications; and managed hosting and colocation services.