Rackspace Technology (NASDAQ:RXT) Shares Up 16.7% – Should You Buy?

Shares of Rackspace Technology, Inc. (NASDAQ:RXT) traded up 16.7% during mid-day trading on Monday . The company traded as high as $2.12 and last traded at $2.0650. 5,000,675 shares traded hands during trading, a decline of 75% from the average session volume of 19,699,395 shares. The stock had previously closed at $1.77.

Wall Street Analyst Weigh In

A number of analysts have weighed in on the stock. 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 report on Friday, February 27th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Rackspace Technology in a research note on Thursday, January 22nd. Four analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, Rackspace Technology presently has a consensus rating of “Reduce” and an average target price of $1.93.

Rackspace Technology Stock Down 7.3%

The firm has a 50-day moving average of $1.57 and a 200 day moving average of $1.23. The stock has a market capitalization of $565.73 million, a P/E ratio of -2.39 and a beta of 2.23.

Rackspace Technology (NASDAQ:RXT) last announced its quarterly earnings results on Thursday, February 26th. The company reported ($0.01) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.04) by $0.03. The business had revenue of $682.80 million during the quarter, compared to the consensus estimate of $672.56 million. Rackspace Technology has set its FY 2026 guidance at -0.200–0.15 EPS. Analysts predict that Rackspace Technology, Inc. will post -0.18 EPS for the current fiscal year.

Insider Activity at Rackspace Technology

In related news, CFO Mark A. Marino sold 14,058 shares of the firm’s stock in a transaction that occurred on Wednesday, March 18th. The stock was sold at an average price of $1.81, for a total transaction of $25,444.98. Following the completion of the transaction, the chief financial officer owned 2,158,874 shares in the company, valued at $3,907,561.94. This trade represents a 0.65% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Dharmendra Kumar Sinha sold 188,123 shares of the company’s stock in a transaction on Wednesday, March 18th. The shares were sold at an average price of $1.81, for a total value of $340,502.63. Following the completion of the sale, the executive vice president owned 2,276,057 shares in the company, valued at $4,119,663.17. This trade represents a 7.63% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 502,440 shares of company stock worth $867,173. Corporate insiders own 2.90% of the company’s stock.

Institutional Investors Weigh In On Rackspace Technology

A number of large investors have recently bought and sold shares of the business. AustralianSuper Pty Ltd bought a new position in Rackspace Technology in the 3rd quarter valued at $2,276,000. Two Sigma Investments LP raised its holdings in shares of Rackspace Technology by 368.4% in the third quarter. Two Sigma Investments LP now owns 673,689 shares of the company’s stock valued at $950,000 after buying an additional 529,862 shares during the last quarter. Janus Henderson Group PLC lifted its position in Rackspace Technology by 70.7% during the 4th quarter. Janus Henderson Group PLC now owns 1,050,353 shares of the company’s stock worth $1,020,000 after buying an additional 435,113 shares in the last quarter. Vanguard Group Inc. lifted its position in Rackspace Technology by 6.1% during the 3rd quarter. Vanguard Group Inc. now owns 6,288,882 shares of the company’s stock worth $8,867,000 after buying an additional 359,087 shares in the last quarter. Finally, Geode Capital Management LLC grew its holdings in Rackspace Technology by 17.9% during the 2nd quarter. Geode Capital Management LLC now owns 2,064,549 shares of the company’s stock worth $2,643,000 after acquiring an additional 313,636 shares during the last quarter. 82.48% of the stock is currently owned by institutional investors.

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.