Rackspace Technology (NASDAQ:RXT) Trading Up 10.9% – Still a Buy?

Rackspace Technology, Inc. (NASDAQ:RXT)’s stock price was up 10.9% during trading on Monday . The company traded as high as $6.24 and last traded at $6.3430. 2,599,255 shares changed hands during trading, a decline of 89% from the average session volume of 23,518,809 shares. The stock had previously closed at $5.72.

Analyst Upgrades and Downgrades

RXT has been the subject of a number of recent research reports. Royal Bank Of Canada boosted their price objective on shares of Rackspace Technology from $2.50 to $4.00 and gave the company a “sector perform” rating in a report on Wednesday, June 17th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Rackspace Technology in a research note on Tuesday, June 2nd. Two research analysts have rated the stock with a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Rackspace Technology presently has an average rating of “Reduce” and an average price target of $2.70.

Rackspace Technology Stock Up 5.1%

The stock has a market capitalization of $1.68 billion, a price-to-earnings ratio of -11.08 and a beta of 2.99. The business’s 50 day simple moving average is $5.19 and its 200-day simple moving average is $2.59.

Rackspace Technology (NASDAQ:RXT) last posted its quarterly earnings results on Thursday, May 7th. The company reported ($0.06) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.03) by ($0.03). The company had revenue of $678.10 million for the quarter, compared to analyst estimates of $660.83 million. Rackspace Technology has set its FY 2026 guidance at -0.200–0.150 EPS.

Insiders Place Their Bets

In other Rackspace Technology news, CFO Mark A. Marino sold 48,099 shares of the business’s stock in a transaction dated Thursday, June 4th. The stock was sold at an average price of $5.56, for a total transaction of $267,430.44. Following the completion of the transaction, the chief financial officer owned 3,370,431 shares of the company’s stock, valued at approximately $18,739,596.36. The trade was a 1.41% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, 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

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Abel Hall LLC bought a new position in Rackspace Technology in the 1st quarter valued at approximately $30,000. Creative Planning lifted its stake in shares of Rackspace Technology by 114.2% in the 2nd quarter. Creative Planning now owns 25,715 shares of the company’s stock valued at $33,000 after acquiring an additional 13,708 shares during the last quarter. SG Americas Securities LLC acquired a new stake in shares of Rackspace Technology during the 1st quarter valued at $34,000. Jump Financial LLC bought a new stake in Rackspace Technology during the 4th quarter worth $34,000. Finally, State of Wyoming acquired a new position in Rackspace Technology in the 1st quarter worth about $35,000. 82.48% of the stock is 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.