Rackspace Technology (NASDAQ:RXT) Stock Price Down 6.5% – Here’s Why

Rackspace Technology, Inc. (NASDAQ:RXT) shares fell 6.5% during mid-day trading on Wednesday . The stock traded as low as $2.27 and last traded at $2.30. 19,780,159 shares were traded during mid-day trading, a decline of 37% from the average session volume of 31,247,121 shares. The stock had previously closed at $2.46.

Wall Street Analysts Forecast Growth

RXT has been the subject of several analyst reports. Royal Bank Of Canada increased their price target on shares of Rackspace Technology from $1.75 to $2.50 and gave the company a “sector perform” rating in a research report on Friday, February 27th. Weiss Ratings reissued a “sell (d-)” rating on shares of Rackspace Technology in a research report on Thursday, January 22nd. Four equities research analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, Rackspace Technology presently has a consensus rating of “Reduce” and a consensus price target of $1.70.

Rackspace Technology Stock Performance

The stock’s 50 day simple moving average is $0.97 and its 200-day simple moving average is $1.19. The firm has a market cap of $591.92 million, a price-to-earnings ratio of -2.56 and a beta of 1.80.

Insiders Place Their Bets

In other news, CFO Mark A. Marino sold 234,683 shares of the firm’s stock in a transaction dated Monday, February 23rd. The stock was 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 $3,574,777.45. This trade represents a 9.67% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, EVP Dharmendra Kumar Sinha sold 45,393 shares of Rackspace Technology stock in a transaction dated Monday, March 2nd. The stock was sold at an average price of $1.81, for a total value of $82,161.33. Following the sale, the executive vice president directly owned 2,464,180 shares of the company’s stock, valued at $4,460,165.80. This trade represents a 1.81% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 300,259 shares of company stock valued at $501,226 in the last 90 days. 2.90% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the stock. Quadrature Capital Ltd purchased a new stake in Rackspace Technology in the 2nd quarter worth approximately $26,000. Savant Capital LLC purchased a new stake in Rackspace Technology during the third quarter worth $33,000. Creative Planning grew its position in Rackspace Technology by 114.2% during the second quarter. Creative Planning now owns 25,715 shares of the company’s stock valued at $33,000 after buying an additional 13,708 shares during the period. Jump Financial LLC purchased a new position in Rackspace Technology in the fourth quarter valued at $34,000. Finally, R Squared Ltd increased its holdings in Rackspace Technology by 74.3% in the third quarter. R Squared Ltd now owns 25,127 shares of the company’s stock valued at $35,000 after buying an additional 10,707 shares in the last quarter. 82.48% of the stock is currently owned by hedge funds and other institutional investors.

Rackspace Technology Company Profile

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.