Rackspace Technology (NASDAQ:RXT) Sees Strong Trading Volume – What’s Next?

Shares of Rackspace Technology, Inc. (NASDAQ:RXT) saw an uptick in trading volume on Monday . 22,290,387 shares changed hands during trading, a decline of 3% from the previous session’s volume of 23,033,402 shares.The stock last traded at $4.8370 and had previously closed at $5.49.

Analysts Set New Price Targets

Several brokerages have weighed in on RXT. Royal Bank Of Canada lifted their price objective on shares of Rackspace Technology from $1.75 to $2.50 and gave the stock a “sector perform” rating in a research note on Friday, February 27th. Weiss Ratings restated a “sell (d-)” rating on shares of Rackspace Technology in a research report on Thursday, January 22nd. Three equities research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Reduce” and an average price target of $1.95.

Rackspace Technology Trading Down 14.5%

The firm’s 50-day moving average price is $1.61 and its 200 day moving average price is $1.24. The company has a market capitalization of $1.17 billion, a price-to-earnings ratio of -7.70 and a beta of 2.23.

Rackspace Technology (NASDAQ:RXT) last issued its earnings results on Thursday, May 7th. The company reported ($0.06) 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 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 research analysts anticipate that Rackspace Technology, Inc. will post -0.18 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CFO Mark A. Marino sold 234,683 shares of the company’s stock in a transaction that occurred on Monday, February 23rd. The shares were sold at an average price of $1.63, for a total transaction of $382,533.29. Following the completion of the transaction, the chief financial officer directly owned 2,193,115 shares in the company, valued at $3,574,777.45. This represents a 9.67% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Dharmendra Kumar Sinha sold 188,123 shares of the company’s stock in a transaction that occurred on Wednesday, March 18th. The stock was sold at an average price of $1.81, for a total transaction of $340,502.63. Following the transaction, the executive vice president owned 2,276,057 shares of the company’s stock, valued at approximately $4,119,663.17. This represents a 7.63% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 502,440 shares of company stock valued at $867,173. 2.90% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Rackspace Technology

A number of institutional investors have recently added to or reduced their stakes in RXT. AQR Capital Management LLC increased its position in Rackspace Technology by 228.6% during the 1st quarter. AQR Capital Management LLC now owns 264,565 shares of the company’s stock worth $447,000 after purchasing an additional 184,058 shares in the last quarter. Dynamic Technology Lab Private Ltd acquired a new position in Rackspace Technology during the 1st quarter worth approximately $113,000. Geode Capital Management LLC increased its position in Rackspace Technology by 17.9% during the 2nd quarter. Geode Capital Management LLC now owns 2,064,549 shares of the company’s stock worth $2,643,000 after purchasing an additional 313,636 shares in the last quarter. Creative Planning increased its position in Rackspace Technology by 114.2% during the 2nd quarter. Creative Planning now owns 25,715 shares of the company’s stock worth $33,000 after purchasing an additional 13,708 shares in the last quarter. Finally, JPMorgan Chase & Co. increased its position in Rackspace Technology by 25.5% during the 2nd quarter. JPMorgan Chase & Co. now owns 1,437,879 shares of the company’s stock worth $1,840,000 after purchasing an additional 292,249 shares in the last quarter. 82.48% of the stock is currently owned by institutional investors and hedge funds.

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.