Rackspace Technology (NASDAQ:RXT) Trading Down 7.7% – Here’s What Happened

Rackspace Technology, Inc. (NASDAQ:RXT)’s share price dropped 7.7% during trading on Wednesday . The stock traded as low as $4.41 and last traded at $4.2920. 7,025,570 shares changed hands during trading, a decline of 70% from the average daily volume of 23,767,885 shares. The stock had previously closed at $4.65.

Analysts Set New Price Targets

RXT has been the subject of a number of analyst reports. Royal Bank Of Canada boosted their price target on Rackspace Technology from $2.50 to $4.00 and gave the stock a “sector perform” rating in a research report on Wednesday, June 17th. Weiss Ratings reissued a “sell (d-)” rating on shares of Rackspace Technology in a research note on Tuesday, June 2nd. Two research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Reduce” and a consensus price target of $2.70.

Rackspace Technology Trading Down 4.4%

The stock has a fifty day simple moving average of $5.53 and a 200-day simple moving average of $2.73. The stock has a market cap of $1.13 billion, a price-to-earnings ratio of -7.29 and a beta of 2.99.

Rackspace Technology (NASDAQ:RXT) last issued its quarterly earnings results on Thursday, May 7th. The company reported ($0.06) EPS for the quarter, missing analysts’ consensus estimates of ($0.03) by ($0.03). The firm had revenue of $678.10 million during the quarter, compared to the consensus estimate of $660.83 million. Rackspace Technology has set its FY 2026 guidance at -0.200–0.150 EPS.

Insider Buying and Selling

In related news, CFO Mark A. Marino sold 48,099 shares of the company’s stock in a transaction on Thursday, June 4th. The shares were sold at an average price of $5.56, for a total transaction of $267,430.44. Following the completion of the transaction, the chief financial officer directly owned 3,370,431 shares in the company, valued at $18,739,596.36. This represents a 1.41% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available 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. 2.30% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in RXT. Strategic Investment Solutions Inc. IL bought a new stake in shares of Rackspace Technology in the second quarter valued at about $67,000. Wealthcare Advisory Partners LLC acquired a new stake in Rackspace Technology during the second quarter worth about $72,000. GK Wealth Management LLC bought a new position in Rackspace Technology during the second quarter valued at about $140,000. Creative Planning increased its stake in Rackspace Technology by 114.2% during the second quarter. Creative Planning now owns 25,715 shares of the company’s stock valued at $33,000 after acquiring an additional 13,708 shares during the period. Finally, Abel Hall LLC acquired a new position in Rackspace Technology in the 1st quarter valued at approximately $30,000. 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.