Rackspace Technology (NASDAQ:RXT) Stock Price Up 16.7% – Time to Buy?

Shares of Rackspace Technology, Inc. (NASDAQ:RXT) were up 16.7% on Monday . The company traded as high as $2.12 and last traded at $2.0650. Approximately 5,000,675 shares changed hands during trading, a decline of 75% from the average daily volume of 19,699,395 shares. The stock had previously closed at $1.77.

Analysts Set New Price Targets

RXT has been the subject of a number of recent research reports. Weiss Ratings reiterated a “sell (d-)” rating on shares of Rackspace Technology in a report on Thursday, January 22nd. Royal Bank Of Canada lifted their price objective on shares of Rackspace Technology from $1.75 to $2.50 and gave the stock a “sector perform” rating in a research report on Friday, February 27th. Four research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Rackspace Technology has a consensus rating of “Reduce” and an average price target of $1.93.

Rackspace Technology Stock Performance

The stock has a market cap of $496.29 million, a PE ratio of -2.12 and a beta of 2.23. The firm has a fifty day moving average price of $1.54 and a 200 day moving average price of $1.22.

Rackspace Technology (NASDAQ:RXT) last announced its earnings results on Thursday, February 26th. The company reported ($0.01) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.04) by $0.03. The business had revenue of $682.80 million for the quarter, compared to analyst estimates of $672.56 million. Rackspace Technology has set its FY 2026 guidance at -0.200–0.15 EPS. On average, equities research analysts forecast that Rackspace Technology, Inc. will post -0.18 earnings per share for the current year.

Insider Activity

In related news, CFO Mark A. Marino sold 234,683 shares of the stock in a transaction that occurred on Monday, February 23rd. The shares were sold at an average price of $1.63, for a total value of $382,533.29. Following the completion of the transaction, the chief financial officer directly owned 2,193,115 shares of the company’s stock, valued at $3,574,777.45. This trade represents a 9.67% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, EVP Dharmendra Kumar Sinha sold 188,123 shares of the business’s stock in a transaction that occurred on Wednesday, March 18th. The stock was sold at an average price of $1.81, for a total transaction of $340,502.63. Following the sale, the executive vice president directly owned 2,276,057 shares in the company, valued at approximately $4,119,663.17. This represents a 7.63% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 502,440 shares of company stock worth $867,173. Corporate insiders own 2.90% of the company’s stock.

Hedge Funds Weigh In On Rackspace Technology

Several hedge funds have recently made changes to their positions in the company. Savant Capital LLC acquired a new stake in Rackspace Technology during the 3rd quarter worth about $33,000. R Squared Ltd increased its holdings in shares of Rackspace Technology by 74.3% in the third quarter. R Squared Ltd now owns 25,127 shares of the company’s stock valued at $35,000 after purchasing an additional 10,707 shares during the period. Creative Planning raised its stake in shares of Rackspace Technology by 114.2% in the second quarter. Creative Planning now owns 25,715 shares of the company’s stock worth $33,000 after purchasing an additional 13,708 shares during the last quarter. Abel Hall LLC purchased a new position in shares of Rackspace Technology in the first quarter worth about $30,000. Finally, Engineers Gate Manager LP lifted its holdings in shares of Rackspace Technology by 47.1% during the second quarter. Engineers Gate Manager LP now owns 34,777 shares of the company’s stock worth $45,000 after purchasing an additional 11,141 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.