Rackspace Technology, Inc. (NASDAQ:RXT) Given Consensus Recommendation of “Reduce” by Brokerages

Rackspace Technology, Inc. (NASDAQ:RXT) has received a consensus rating of “Reduce” from the six brokerages that are presently covering the firm, Marketbeat.com reports. Two research analysts have rated the stock with a sell recommendation and four have issued a hold recommendation on the company. The average 12 month price target among analysts that have issued ratings on the stock in the last year is $1.70.

RXT has been the subject of several research analyst reports. Royal Bank Of Canada boosted their target price on shares of Rackspace Technology from $1.75 to $2.50 and gave the stock a “sector perform” rating in a research report on Friday, February 27th. Weiss Ratings restated a “sell (d-)” rating on shares of Rackspace Technology in a research note on Thursday, January 22nd.

Insiders Place Their Bets

In other Rackspace Technology news, CFO Mark A. Marino sold 234,683 shares of the firm’s stock in a transaction dated Monday, February 23rd. The shares were sold at an average price of $1.63, for a total value of $382,533.29. Following the transaction, the chief financial officer owned 2,193,115 shares of the company’s stock, 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 legal filing with the SEC, which is available at this link. Also, EVP Dharmendra Kumar Sinha sold 188,123 shares of the company’s stock in a transaction that occurred 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 transaction, the executive vice president directly owned 2,276,057 shares of the company’s stock, valued at $4,119,663.17. This trade represents a 7.63% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 502,440 shares of company stock valued at $867,173. 2.90% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in RXT. Quadrature Capital Ltd acquired a new stake in Rackspace Technology in the second quarter worth approximately $26,000. Savant Capital LLC acquired a new position in shares of Rackspace Technology during the 3rd quarter valued at $33,000. R Squared Ltd raised its stake in shares of Rackspace Technology by 74.3% in the 3rd quarter. R Squared Ltd now owns 25,127 shares of the company’s stock worth $35,000 after buying an additional 10,707 shares in the last quarter. Creative Planning raised 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 worth $33,000 after buying an additional 13,708 shares in the last quarter. Finally, Engineers Gate Manager LP lifted its holdings in shares of Rackspace Technology by 47.1% in the second quarter. Engineers Gate Manager LP now owns 34,777 shares of the company’s stock valued at $45,000 after buying an additional 11,141 shares during the period. 82.48% of the stock is currently owned by institutional investors.

Rackspace Technology Stock Down 2.0%

Shares of NASDAQ RXT opened at $0.98 on Wednesday. The business has a 50 day moving average price of $1.25 and a two-hundred day moving average price of $1.24. Rackspace Technology has a fifty-two week low of $0.39 and a fifty-two week high of $2.74. The firm has a market cap of $241.92 million, a PE ratio of -1.03 and a beta of 1.80.

Rackspace Technology (NASDAQ:RXT) last released its quarterly earnings results on Thursday, February 26th. The company reported ($0.01) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.04) by $0.03. The company had revenue of $682.80 million for the quarter, compared to analyst estimates of $672.56 million. Rackspace Technology has set its FY 2026 guidance at -0.200–0.15 EPS.

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.