Rackspace Technology (NASDAQ:RXT) Trading Up 24.2% – Time to Buy?

Rackspace Technology, Inc. (NASDAQ:RXT) traded up 24.2% during mid-day trading on Wednesday . The stock traded as high as $5.77 and last traded at $5.7870. 4,283,512 shares traded hands during mid-day trading, a decline of 82% from the average session volume of 23,519,564 shares. The stock had previously closed at $4.66.

Wall Street Analysts Forecast Growth

Several analysts have weighed in on the company. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Rackspace Technology in a research report on Tuesday, June 2nd. Royal Bank Of Canada lifted their price objective on Rackspace Technology from $1.75 to $2.50 and gave the company a “sector perform” rating in a research report on Friday, February 27th. Two investment analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Reduce” and an average target price of $1.95.

Rackspace Technology Stock Performance

The company has a 50-day simple moving average of $3.11 and a two-hundred day simple moving average of $1.84. The firm has a market capitalization of $1.41 billion, a P/E ratio of -9.22 and a beta of 3.03.

Rackspace Technology (NASDAQ:RXT) last posted its quarterly earnings data on Thursday, May 7th. The company reported ($0.06) earnings per share for the quarter, missing the consensus estimate of ($0.03) by ($0.03). The business had revenue of $678.10 million during the quarter, compared to analyst estimates of $660.83 million. Rackspace Technology has set its FY 2026 guidance at -0.200–0.150 EPS. As a group, research analysts forecast that Rackspace Technology, Inc. will post -0.18 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, EVP Dharmendra Kumar Sinha sold 188,123 shares of the business’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 value of $340,502.63. Following the sale, the executive vice president directly owned 2,276,057 shares of the company’s stock, valued at $4,119,663.17. The trade was a 7.63% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CFO Mark A. Marino sold 48,099 shares of the business’s stock in a transaction that occurred on Thursday, June 4th. The stock was sold at an average price of $5.56, for a total value of $267,430.44. Following the completion of the sale, the chief financial officer directly owned 3,370,431 shares in the company, valued at approximately $18,739,596.36. This represents a 1.41% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders sold 250,280 shares of company stock worth $633,378. Insiders own 2.90% of the company’s stock.

Hedge Funds Weigh In On Rackspace Technology

A number of hedge funds have recently added to or reduced their stakes in RXT. Abel Hall LLC purchased a new position in Rackspace Technology in the 1st quarter worth approximately $30,000. Savant Capital LLC purchased a new position in Rackspace Technology in the 3rd quarter worth approximately $33,000. Creative Planning raised its holdings in Rackspace Technology by 114.2% in the 2nd quarter. Creative Planning now owns 25,715 shares of the company’s stock worth $33,000 after acquiring an additional 13,708 shares during the last quarter. SG Americas Securities LLC purchased a new position in Rackspace Technology in the 1st quarter worth approximately $34,000. Finally, Jump Financial LLC purchased a new position in Rackspace Technology in the 4th quarter worth approximately $34,000. 82.48% of the stock is currently owned by hedge funds and other 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.