CenterBook Partners LP Purchases 1,967,867 Shares of Rackspace Technology, Inc. $RXT

CenterBook Partners LP purchased a new position in Rackspace Technology, Inc. (NASDAQ:RXT) during the third quarter, HoldingsChannel.com reports. The fund purchased 1,967,867 shares of the company’s stock, valued at approximately $7,330,000.

A number of other large investors have also added to or reduced their stakes in the company. ProShare Advisors LLC raised its stake in shares of Rackspace Technology by 47.9% during the third quarter. ProShare Advisors LLC now owns 17,834 shares of the company’s stock valued at $66,000 after acquiring an additional 5,779 shares during the last quarter. Legal & General Group Plc purchased a new stake in shares of Rackspace Technology during the second quarter worth about $58,000. Quantbot Technologies LP bought a new stake in shares of Rackspace Technology in the second quarter worth about $63,000. Allworth Financial LP bought a new stake in shares of Rackspace Technology in the second quarter worth about $66,000. Finally, Strategic Investment Solutions Inc. IL bought a new stake in shares of Rackspace Technology in the second quarter worth about $67,000. Institutional investors own 82.48% of the company’s stock.

Insider Activity at Rackspace Technology

In related news, CEO Gajakarnan Kandiah sold 498,728 shares of the business’s stock in a transaction dated Friday, September 4th. The shares were sold at an average price of $3.21, for a total transaction of $1,600,916.88. Following the transaction, the chief executive officer owned 3,684,955 shares in the company, valued at $11,828,705.55. The trade was a 11.92% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, 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. Also, EVP Dharmendra Sinha sold 107,002 shares of the stock in a transaction dated Wednesday, September 2nd. The stock was sold at an average price of $2.95, for a total transaction of $315,655.90. Following the completion of the transaction, the executive vice president directly owned 3,263,429 shares of the company’s stock, valued at approximately $9,627,115.55. The trade was a 3.17% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 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. Insiders have sold 714,141 shares of company stock worth $2,299,799 over the last ninety days. Corporate insiders own 2.30% of the company’s stock.

Analyst Ratings Changes

A number of brokerages recently issued reports on RXT. Weiss Ratings restated a “sell (d-)” rating on shares of Rackspace Technology in a report on Friday, August 28th. Wall Street Zen cut Rackspace Technology from a “hold” rating to a “sell” rating in a report on Saturday, August 15th. One equities research analyst has rated the stock with a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Rackspace Technology currently has a consensus rating of “Reduce” and a consensus target price of $4.00.

Rackspace Technology Price Performance

NASDAQ:RXT traded up $0.15 during trading hours on Friday, hitting $2.53. The company had a trading volume of 3,906,929 shares, compared to its average volume of 4,571,182. The stock has a 50-day moving average price of $3.32 and a 200 day moving average price of $3.24. The company has a market capitalization of $644.82 million, a PE ratio of -3.89 and a beta of 3.29. Rackspace Technology, Inc. has a 52 week low of $0.39 and a 52 week high of $8.60.

Rackspace Technology (NASDAQ:RXT) last issued its quarterly earnings data on Monday, August 10th. The company reported ($0.08) EPS for the quarter, topping the consensus estimate of ($0.09) by $0.01. The company had revenue of $670.10 million during the quarter, compared to the consensus estimate of $646.00 million. Analysts anticipate that Rackspace Technology, Inc. will post -0.28 EPS for the current fiscal year.

Rackspace Technology Profile

Rackspace Technology, Inc is a technology services company that helps businesses design, build, operate and optimize information technology environments across public, private and hybrid clouds. Its offerings are intended to support organizations at various stages of cloud adoption, from migration and modernization to ongoing management and optimization.

The company provides managed cloud services for major cloud platforms, including Amazon Web Services, Microsoft Azure and Google Cloud.