Rackspace Technology (NASDAQ:RXT) Stock Price Down 8.1% – Here’s What Happened

Rackspace Technology, Inc. (NASDAQ:RXT)’s share price dropped 8.1% during mid-day trading on Friday. The company traded as low as $2.77 and last traded at $2.7650. Approximately 688,863 shares changed hands during trading, a decline of 96% from the average session volume of 17,062,660 shares. The stock had previously closed at $3.01.

Wall Street Analyst Weigh In

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

Rackspace Technology Stock Down 5.1%

The stock’s fifty day simple moving average is $3.31 and its 200-day simple moving average is $3.28. The company has a market capitalization of $751.01 million, a PE ratio of -4.92 and a beta of 3.29.

Rackspace Technology (NASDAQ:RXT) last posted its earnings results on Monday, November 9th. The company reported ($0.06) EPS for the quarter, topping analysts’ consensus estimates of ($0.08) by $0.02. The firm had revenue of $609.10 million for the quarter, compared to analysts’ expectations of $573.96 million. Analysts expect that Rackspace Technology, Inc. will post -0.28 EPS for the current year.

Insider Transactions at Rackspace Technology

In related news, CEO Gajakarnan Kandiah sold 498,728 shares of the stock in a transaction dated Friday, September 4th. The shares were sold at an average price of $3.21, for a total value of $1,600,916.88. Following the sale, the chief executive officer directly owned 3,684,955 shares of the company’s stock, valued at approximately $11,828,705.55. This represents a 11.92% decrease in their position. The sale was disclosed in a legal 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. Also, EVP Dharmendra Sinha sold 107,002 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 $315,655.90. Following the transaction, the executive vice president owned 3,263,429 shares of the company’s stock, valued at $9,627,115.55. This trade represents 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 sold 665,361 shares of company stock valued at $2,092,484 in the last 90 days. 2.30% of the stock is currently owned by insiders.

Institutional Trading of Rackspace Technology

Several institutional investors and hedge funds have recently modified their holdings of the business. Legal & General Group Plc acquired a new stake in shares of Rackspace Technology in the second quarter valued at approximately $58,000. Quantbot Technologies LP purchased a new position in shares of Rackspace Technology during the 2nd quarter worth approximately $63,000. Allworth Financial LP acquired a new position in shares of Rackspace Technology during the 2nd quarter worth approximately $66,000. Strategic Investment Solutions Inc. IL acquired a new position in shares of Rackspace Technology during the 2nd quarter worth approximately $67,000. Finally, State of Wyoming acquired a new position in shares of Rackspace Technology during the 3rd quarter worth approximately $39,000. Hedge funds and other institutional investors own 82.48% of the company’s stock.

Rackspace Technology Company Profile

Rackspace Technology, Inc. (NASDAQ: RXT) provides multicloud technology services to businesses and public-sector organizations. Its offerings include cloud strategy and migration, infrastructure management, application modernization, data services, and cybersecurity. The company helps customers operate workloads across public cloud platforms, including Amazon Web Services, Microsoft Azure, and Google Cloud, as well as private and hybrid cloud environments. Its services include consulting and ongoing support tailored to customers’ technology needs.