Rackspace Technology (NASDAQ:RXT) Trading Up 24.2% – Time to Buy?

Rackspace Technology, Inc. (NASDAQ:RXT) was up 24.2% on Wednesday . The company traded as high as $5.77 and last traded at $5.7870. Approximately 4,283,512 shares traded hands during trading, a decline of 82% from the average daily volume of 23,519,564 shares. The stock had previously closed at $4.66.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on RXT shares. Weiss Ratings restated a “sell (d-)” rating on shares of Rackspace Technology in a research report on Tuesday, June 2nd. Royal Bank Of Canada raised their price target on Rackspace Technology from $1.75 to $2.50 and gave the company a “sector perform” rating in a research report on Friday, February 27th. Two analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of “Reduce” and an average price target of $1.95.

Rackspace Technology Price Performance

The stock has a 50 day moving average price of $3.11 and a 200-day moving average price of $1.84. The stock has a market capitalization of $1.41 billion, a P/E ratio of -9.22 and a beta of 3.03.

Rackspace Technology (NASDAQ:RXT) last announced 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 analysts’ expectations of $660.83 million. Rackspace Technology has set its FY 2026 guidance at -0.200–0.150 EPS. Research analysts predict that Rackspace Technology, Inc. will post -0.18 earnings per share for the current fiscal year.

Insider Transactions at Rackspace Technology

In other news, CFO Mark A. Marino sold 48,099 shares of the firm’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 transaction, the chief financial officer directly owned 3,370,431 shares of the company’s stock, valued at approximately $18,739,596.36. This trade represents a 1.41% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed 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. Also, EVP Dharmendra Kumar Sinha sold 188,123 shares of the firm’s stock in a transaction dated Wednesday, March 18th. The stock was sold at an average price of $1.81, for a total value of $340,502.63. Following the completion of the sale, the executive vice president directly owned 2,276,057 shares in the company, valued at $4,119,663.17. The trade was a 7.63% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 250,280 shares of company stock worth $633,378 over the last ninety days. Insiders own 2.90% of the company’s stock.

Institutional Trading of Rackspace Technology

Several large investors have recently modified their holdings of the business. Vanguard Group Inc. grew its stake in shares of Rackspace Technology by 6.1% in the third quarter. Vanguard Group Inc. now owns 6,288,882 shares of the company’s stock worth $8,867,000 after purchasing an additional 359,087 shares during the last quarter. Janus Henderson Group PLC grew its stake in shares of Rackspace Technology by 179.7% in the first quarter. Janus Henderson Group PLC now owns 2,937,670 shares of the company’s stock worth $2,878,000 after purchasing an additional 1,887,317 shares during the last quarter. Geode Capital Management LLC grew its stake in shares of Rackspace Technology by 4.2% in the fourth quarter. Geode Capital Management LLC now owns 2,408,000 shares of the company’s stock worth $2,338,000 after purchasing an additional 96,760 shares during the last quarter. Renaissance Technologies LLC grew its stake in shares of Rackspace Technology by 14.0% in the first quarter. Renaissance Technologies LLC now owns 2,041,600 shares of the company’s stock worth $2,000,000 after purchasing an additional 250,700 shares during the last quarter. Finally, JPMorgan Chase & Co. grew its stake in shares of Rackspace Technology by 1.8% in the third quarter. JPMorgan Chase & Co. now owns 1,464,389 shares of the company’s stock worth $2,065,000 after purchasing an additional 26,510 shares during the last quarter. 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.