Rackspace Technology (NASDAQ:RXT) Trading Down 7.6% – What’s Next?

Rackspace Technology, Inc. (NASDAQ:RXT) was down 7.6% during trading on Monday . The stock traded as low as $6.51 and last traded at $6.6690. 4,029,750 shares were traded during mid-day trading, a decline of 83% from the average session volume of 24,335,793 shares. The stock had previously closed at $7.22.

Analysts Set New Price Targets

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

Rackspace Technology Price Performance

The business has a 50-day simple moving average of $4.20 and a two-hundred day simple moving average of $2.22. The stock has a market cap of $1.81 billion, a price-to-earnings ratio of -11.92 and a beta of 3.03.

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 analysts’ consensus estimates of ($0.03) by ($0.03). The firm had revenue of $678.10 million during the quarter, compared to the consensus estimate of $660.83 million. Rackspace Technology has set its FY 2026 guidance at -0.200–0.150 EPS. As a group, equities analysts anticipate that Rackspace Technology, Inc. will post -0.18 earnings per share for the current fiscal year.

Insider Transactions at Rackspace Technology

In other Rackspace Technology news, CFO Mark A. Marino sold 48,099 shares of Rackspace Technology stock in a transaction 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 transaction, 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 transaction was disclosed in a document filed with the SEC, which is available through 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 owned by corporate insiders.

Hedge Funds Weigh In On Rackspace Technology

Several large investors have recently modified their holdings of the stock. Essential Partners LLC boosted 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 worth $71,000 after buying an additional 71,760 shares during the period. Arete Wealth Advisors LLC bought a new position in Rackspace Technology in the 1st quarter valued at about $219,000. Janus Henderson Group PLC raised its holdings 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 valued at $2,878,000 after acquiring an additional 1,887,317 shares during the period. Renaissance Technologies LLC lifted its position in Rackspace Technology by 14.0% during the first quarter. Renaissance Technologies LLC now owns 2,041,600 shares of the company’s stock worth $2,000,000 after acquiring an additional 250,700 shares during the last quarter. Finally, State of Wyoming bought a new stake in shares of Rackspace Technology during the first quarter worth approximately $35,000. 82.48% of the stock is owned by 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.