Rackspace Technology (NASDAQ:RXT) Given New $4.00 Price Target at Royal Bank Of Canada

Rackspace Technology (NASDAQ:RXT) had its price objective boosted by investment analysts at Royal Bank Of Canada from $2.50 to $4.00 in a note issued to investors on Wednesday,Benzinga reports. The brokerage currently has a “sector perform” rating on the stock. Royal Bank Of Canada’s target price points to a potential downside of 41.85% from the company’s previous close.

Separately, Weiss Ratings restated a “sell (d-)” rating on shares of Rackspace Technology in a report on Tuesday, June 2nd. Two analysts have rated the stock with a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Reduce” and a consensus price target of $2.70.

Rackspace Technology Stock Performance

Shares of NASDAQ RXT traded up $0.67 during midday trading on Wednesday, reaching $6.88. 20,765,214 shares of the stock were exchanged, compared to its average volume of 24,055,920. The company has a 50 day simple moving average of $3.58 and a 200 day simple moving average of $2.00. The stock has a market capitalization of $1.71 billion, a P/E ratio of -11.23 and a beta of 3.03. Rackspace Technology has a twelve month low of $0.39 and a twelve month high of $7.65.

Rackspace Technology (NASDAQ:RXT) last announced its quarterly earnings results on Thursday, May 7th. The company reported ($0.06) earnings per share (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, research analysts expect that Rackspace Technology will post -0.18 earnings per share for the current year.

Insiders Place Their Bets

In related news, CFO Mark A. Marino sold 48,099 shares of Rackspace Technology stock in a transaction that occurred 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 completion of the sale, the chief financial officer owned 3,370,431 shares in the company, valued at approximately $18,739,596.36. This trade represents a 1.41% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 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. Company insiders own 2.30% of the company’s stock.

Hedge Funds Weigh In On Rackspace Technology

Several hedge funds and other institutional investors have recently added to or reduced their stakes in RXT. AQR Capital Management LLC boosted its position in Rackspace Technology by 228.6% in the 1st quarter. AQR Capital Management LLC now owns 264,565 shares of the company’s stock valued at $447,000 after buying an additional 184,058 shares during the period. Dynamic Technology Lab Private Ltd purchased a new position in Rackspace Technology in the 1st quarter valued at approximately $113,000. Geode Capital Management LLC boosted its position in Rackspace Technology by 17.9% in the 2nd quarter. Geode Capital Management LLC now owns 2,064,549 shares of the company’s stock valued at $2,643,000 after buying an additional 313,636 shares during the period. Creative Planning boosted its position in Rackspace Technology by 114.2% in the 2nd quarter. Creative Planning now owns 25,715 shares of the company’s stock valued at $33,000 after buying an additional 13,708 shares during the period. Finally, JPMorgan Chase & Co. boosted its position in Rackspace Technology by 25.5% in the 2nd quarter. JPMorgan Chase & Co. now owns 1,437,879 shares of the company’s stock valued at $1,840,000 after buying an additional 292,249 shares during the period. Hedge funds and other institutional investors own 82.48% of the company’s stock.

Rackspace Technology Company Profile

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.