Rackspace Technology (NASDAQ:RXT) Shares Gap Up – Here’s What Happened

Rackspace Technology, Inc. (NASDAQ:RXT) shares gapped up prior to trading on Thursday . The stock had previously closed at $1.35, but opened at $1.6950. Rackspace Technology shares last traded at $2.1320, with a volume of 79,805,066 shares.

Analysts Set New Price Targets

A number of research firms have recently weighed in on RXT. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Rackspace Technology in a research report on Thursday, January 22nd. Royal Bank Of Canada decreased their target price on shares of Rackspace Technology from $2.00 to $1.75 and set a “sector perform” rating for the company in a research note on Monday, November 10th. Four equities research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Reduce” and a consensus target price of $1.51.

Rackspace Technology Trading Up 67.0%

The firm has a market capitalization of $549.30 million, a PE ratio of -2.07 and a beta of 2.18. The firm has a 50 day simple moving average of $0.88 and a 200 day simple moving average of $1.16.

Insider Transactions at Rackspace Technology

In related news, EVP Dharmendra Kumar Sinha sold 91,151 shares of Rackspace Technology stock in a transaction on Friday, November 28th. The stock was sold at an average price of $1.04, for a total value of $94,797.04. Following the completion of the sale, the executive vice president owned 2,568,895 shares of the company’s stock, valued at $2,671,650.80. The trade was a 3.43% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CFO Mark A. Marino sold 234,683 shares of the stock in a transaction dated Monday, February 23rd. The shares were sold at an average price of $1.63, for a total value of $382,533.29. Following the completion of the transaction, the chief financial officer directly owned 2,193,115 shares in the company, valued at approximately $3,574,777.45. This represents a 9.67% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 385,156 shares of company stock valued at $537,246. 2.90% of the stock is owned by insiders.

Hedge Funds Weigh In On Rackspace Technology

Several institutional investors have recently made changes to their positions in the business. AustralianSuper Pty Ltd purchased a new position in shares of Rackspace Technology during the 3rd quarter worth $2,276,000. Intech Investment Management LLC increased its stake in shares of Rackspace Technology by 45.4% in the 2nd quarter. Intech Investment Management LLC now owns 51,692 shares of the company’s stock worth $66,000 after purchasing an additional 16,152 shares in the last quarter. Quadrature Capital Ltd bought a new position in Rackspace Technology in the 2nd quarter worth $26,000. Steward Partners Investment Advisory LLC raised its stake in shares of Rackspace Technology by 3,385.4% in the fourth quarter. Steward Partners Investment Advisory LLC now owns 64,828 shares of the company’s stock worth $63,000 after buying an additional 62,968 shares during the period. Finally, AEGON USA Investment Management LLC purchased a new stake in Rackspace Technology in the 4th quarter worth $194,000. Institutional investors own 82.48% of the company’s stock.

About Rackspace Technology

Rackspace Technology (NASDAQ: RXT) is a leading provider of managed multi-cloud solutions and services, specializing in the deployment, management and optimization of public and private cloud environments. The company helps organizations design and operate applications across platforms such as Amazon Web Services (AWS), Microsoft Azure, Google Cloud and its own private cloud infrastructure. Rackspace’s core offerings include cloud migration, application modernization, data protection, security services and 24x7x365 operational support.

Beyond cloud hosting, Rackspace offers a range of professional services designed to accelerate digital transformation initiatives.