Rackspace Technology (NASDAQ:RXT) Shares Gap Up – Here’s Why

Rackspace Technology, Inc. (NASDAQ:RXT) shares gapped up prior to trading on Tuesday . The stock had previously closed at $5.91, but opened at $6.77. Rackspace Technology shares last traded at $6.6470, with a volume of 33,383,856 shares.

Wall Street Analysts Forecast Growth

RXT has been the topic of several research analyst reports. Weiss Ratings reissued a “sell (d-)” rating on shares of Rackspace Technology in a research report on Tuesday, June 2nd. Royal Bank Of Canada lifted their price target on shares of 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 equities research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Reduce” and a consensus target price of $1.95.

Rackspace Technology Price Performance

The company has a 50-day moving average price of $3.48 and a two-hundred day moving average price of $1.97. The company has a market cap of $1.68 billion, a PE ratio of -11.14 and a beta of 3.01.

Rackspace Technology (NASDAQ:RXT) last posted its earnings results on Thursday, May 7th. The company reported ($0.06) EPS for the quarter, missing analysts’ consensus estimates 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, equities research analysts anticipate that Rackspace Technology, Inc. will post -0.18 earnings per share for the current year.

Insider Buying and Selling at Rackspace Technology

In related 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 sale, the chief financial officer 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 position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. 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 Rackspace Technology stock in a transaction 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 sale, the executive vice president directly owned 2,276,057 shares in the company, valued at $4,119,663.17. This trade represents a 7.63% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 250,280 shares of company stock worth $633,378 in the last ninety days. 2.30% of the stock is currently owned by insiders.

Institutional Trading of Rackspace Technology

Several institutional investors have recently added to or reduced their stakes in RXT. Abel Hall LLC acquired a new stake in Rackspace Technology in the first quarter valued at $30,000. Savant Capital LLC acquired a new stake in Rackspace Technology in the third quarter valued at $33,000. Creative Planning raised its holdings 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 in the last quarter. SG Americas Securities LLC acquired a new stake in Rackspace Technology in the first quarter valued at $34,000. Finally, Jump Financial LLC acquired a new stake in Rackspace Technology in the fourth quarter valued at $34,000. 82.48% of the stock is owned by institutional investors and hedge funds.

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.