Rackspace Technology (NASDAQ:RXT) Stock Price Down 7.6% – Should You Sell?

Rackspace Technology, Inc. (NASDAQ:RXT) traded down 7.6% on Wednesday . The stock traded as low as $6.08 and last traded at $6.2450. Approximately 17,702,426 shares changed hands during trading, a decline of 25% from the average daily volume of 23,505,803 shares. The stock had previously closed at $6.76.

Wall Street Analyst Weigh In

A number of equities analysts have issued reports on the company. Royal Bank Of Canada upped their target price on Rackspace Technology from $2.50 to $4.00 and gave the stock a “sector perform” rating in a report on Wednesday, June 17th. Weiss Ratings restated a “sell (d-)” rating on shares of Rackspace Technology in a report on Tuesday, June 2nd. Two equities research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Reduce” and a consensus target price of $2.70.

Rackspace Technology Stock Down 7.2%

The stock has a 50 day moving average of $5.19 and a 200 day moving average of $2.59. The company has a market capitalization of $1.56 billion, a price-to-earnings ratio of -10.29 and a beta of 2.99.

Rackspace Technology (NASDAQ:RXT) last released its quarterly earnings results 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 business had revenue of $678.10 million for the quarter, compared to analysts’ expectations of $660.83 million. Rackspace Technology has set its FY 2026 guidance at -0.200–0.150 EPS.

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 transaction, the chief financial officer owned 3,370,431 shares in the company, 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 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 owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. AEGON USA Investment Management LLC bought a new stake in Rackspace Technology in the fourth quarter worth approximately $194,000. JPMorgan Chase & Co. grew its position in shares of Rackspace Technology by 1.8% during the 3rd quarter. JPMorgan Chase & Co. now owns 1,464,389 shares of the company’s stock worth $2,065,000 after buying an additional 26,510 shares during the period. Bank of New York Mellon Corp grew its position in shares of Rackspace Technology by 35.4% during the 1st quarter. Bank of New York Mellon Corp now owns 239,954 shares of the company’s stock worth $235,000 after buying an additional 62,768 shares during the period. Renaissance Technologies LLC increased its stake in shares of Rackspace Technology by 14.0% in the 1st quarter. Renaissance Technologies LLC now owns 2,041,600 shares of the company’s stock valued at $2,000,000 after acquiring an additional 250,700 shares in the last quarter. Finally, Janus Henderson Group PLC lifted its position in shares of Rackspace Technology by 179.7% during 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. 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.