Rackspace Technology (NASDAQ:RXT) Shares Down 12.3% – Should You Sell?

Rackspace Technology, Inc. (NASDAQ:RXT) fell 12.3% during mid-day trading on Thursday . The company traded as low as $5.75 and last traded at $5.6940. 7,703,295 shares traded hands during mid-day trading, a decline of 67% from the average daily volume of 23,649,773 shares. The stock had previously closed at $6.49.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently commented on RXT shares. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Rackspace Technology in a report on Tuesday, June 2nd. Royal Bank Of Canada boosted their price objective on Rackspace Technology from $2.50 to $4.00 and gave the stock a “sector perform” rating in a report on Wednesday, June 17th. Two equities research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Reduce” and a consensus price target of $2.70.

Rackspace Technology Price Performance

The company has a market cap of $1.43 billion, a PE ratio of -9.38 and a beta of 2.99. The stock has a fifty day moving average price of $4.99 and a 200-day moving average price of $2.50.

Rackspace Technology (NASDAQ:RXT) last posted its quarterly earnings results 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 company had revenue of $678.10 million during the quarter, compared to analysts’ expectations of $660.83 million. Rackspace Technology has set its FY 2026 guidance at -0.200–0.150 EPS.

Insider Activity

In related news, CFO Mark A. Marino sold 48,099 shares of the firm’s stock in a transaction that occurred on Thursday, June 4th. The shares were sold at an average price of $5.56, for a total transaction 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 trade represents a 1.41% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 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. 2.30% of the stock is owned by company insiders.

Institutional Investors Weigh In On Rackspace Technology

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Essential Partners LLC grew its holdings in shares of Rackspace Technology by 25,906.1% during the 1st quarter. Essential Partners LLC now owns 72,037 shares of the company’s stock valued at $71,000 after acquiring an additional 71,760 shares in the last quarter. Arete Wealth Advisors LLC purchased a new position in Rackspace Technology in the first quarter valued at about $219,000. Janus Henderson Group PLC increased its position in Rackspace Technology by 179.7% in the 1st quarter. Janus Henderson Group PLC now owns 2,937,670 shares of the company’s stock worth $2,878,000 after purchasing an additional 1,887,317 shares during the last quarter. Renaissance Technologies LLC raised its stake in shares of Rackspace Technology by 14.0% during the 1st quarter. Renaissance Technologies LLC now owns 2,041,600 shares of the company’s stock worth $2,000,000 after purchasing an additional 250,700 shares in the last quarter. Finally, State of Wyoming purchased a new stake in shares of Rackspace Technology during the 1st quarter worth about $35,000. Hedge funds and other 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.