Rackspace Technology (NASDAQ:RXT) Releases Earnings Results

Rackspace Technology (NASDAQ:RXT) announced its earnings results on Monday. The company reported ($0.06) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.08) by $0.02, FiscalAI reports. The company had revenue of $609.10 million for the quarter, compared to analyst estimates of $573.96 million.

Rackspace Technology Trading Up 7.5%

Rackspace Technology stock traded up $0.19 during mid-day trading on Monday, hitting $2.72. The stock had a trading volume of 7,959,594 shares, compared to its average volume of 17,229,689. The stock has a 50-day simple moving average of $3.32 and a two-hundred day simple moving average of $3.24. The stock has a market capitalization of $693.25 million, a PE ratio of -4.18 and a beta of 3.29. Rackspace Technology has a 12 month low of $0.39 and a 12 month high of $8.60.

Analyst Ratings Changes

RXT has been the subject of a number of research reports. Weiss Ratings reissued a “sell (d-)” rating on shares of Rackspace Technology in a report on Friday, August 28th. Wall Street Zen downgraded Rackspace Technology from a “hold” rating to a “sell” rating in a report on Saturday, August 15th. One investment analyst has rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Reduce” and a consensus target price of $4.00.

Insider Transactions at Rackspace Technology

In other Rackspace Technology news, EVP Dharmendra Sinha sold 107,002 shares of the company’s stock in a transaction dated Wednesday, September 2nd. The shares were sold at an average price of $2.95, for a total transaction of $315,655.90. Following the transaction, the executive vice president directly owned 3,263,429 shares in the company, valued at approximately $9,627,115.55. This represents a 3.17% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible 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, CFO Mark A. Marino sold 51,373 shares of the firm’s stock in a transaction dated Wednesday, September 2nd. The shares were sold at an average price of $2.95, for a total transaction of $151,550.35. Following the completion of the transaction, the chief financial officer directly owned 2,865,853 shares in the company, valued at $8,454,266.35. This trade represents a 1.76% decrease in their position. The disclosure for this sale is available in the SEC filing. 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 valued at $2,299,799 in the last three months. Company insiders own 2.30% of the company’s stock.

Rackspace Technology Company 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.