Rackspace Technology (NASDAQ:RXT) Given New $4.00 Price Target at Royal Bank Of Canada

Rackspace Technology (NASDAQ:RXT) had its target price raised by investment analysts at Royal Bank Of Canada from $2.50 to $4.00 in a research note issued to investors on Wednesday,Benzinga reports. The brokerage currently has a “sector perform” rating on the stock. Royal Bank Of Canada’s target price would suggest a potential downside of 41.85% from the stock’s previous close.

Separately, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Rackspace Technology in a research report on Tuesday, June 2nd. Two research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, Rackspace Technology has a consensus rating of “Reduce” and a consensus target price of $2.70.

Rackspace Technology Stock Up 10.8%

RXT stock traded up $0.67 during midday trading on Wednesday, hitting $6.88. The company’s stock had a trading volume of 20,765,214 shares, compared to its average volume of 24,055,920. Rackspace Technology has a 52-week low of $0.39 and a 52-week high of $7.65. The firm has a market capitalization of $1.71 billion, a P/E ratio of -11.23 and a beta of 3.03. The firm has a 50-day simple moving average of $3.58 and a 200-day simple moving average of $2.00.

Rackspace Technology (NASDAQ:RXT) last released its quarterly earnings data 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 firm 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. On average, sell-side analysts expect that Rackspace Technology will post -0.18 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, CFO Mark A. Marino sold 48,099 shares of the business’s stock in a transaction on Thursday, June 4th. The shares were 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 of the company’s stock, valued at $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 is available at this hyperlink. 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 currently owned by company insiders.

Institutional Investors Weigh In On Rackspace Technology

Institutional investors and hedge funds have recently bought and sold shares of the stock. Savant Capital LLC purchased a new stake in Rackspace Technology in the third quarter valued at $33,000. R Squared Ltd lifted its position in Rackspace Technology by 74.3% in the third quarter. R Squared Ltd now owns 25,127 shares of the company’s stock valued at $35,000 after acquiring an additional 10,707 shares during the last quarter. Creative Planning lifted its position in Rackspace Technology by 114.2% in the second 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. Abel Hall LLC purchased a new stake in Rackspace Technology in the first quarter valued at $30,000. Finally, Engineers Gate Manager LP lifted its position in 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 acquiring an additional 11,141 shares during the last quarter. 82.48% of the stock is owned by hedge funds and other institutional investors.

Rackspace Technology Company Profile

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.