Rackspace Technology (NASDAQ:RXT) Trading Up 9.9% – Time to Buy?

Rackspace Technology, Inc. (NASDAQ:RXT) was up 9.9% during mid-day trading on Tuesday . The stock traded as high as $7.32 and last traded at $7.5160. 3,349,951 shares changed hands during mid-day trading, a decline of 86% from the average session volume of 24,234,350 shares. The stock had previously closed at $6.84.

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on the company. Royal Bank Of Canada raised their price objective on Rackspace Technology from $2.50 to $4.00 and gave the stock a “sector perform” rating in a research note on Wednesday, June 17th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Rackspace Technology in a research report on Tuesday, June 2nd. Two research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Reduce” and a consensus price target of $2.70.

Rackspace Technology Trading Up 3.3%

The company’s 50-day moving average is $4.08 and its 200 day moving average is $2.18. The firm has a market cap of $1.76 billion, a PE ratio of -11.53 and a beta of 3.01.

Rackspace Technology (NASDAQ:RXT) last posted its quarterly earnings data on Thursday, May 7th. The company reported ($0.06) earnings per share for the quarter, missing the consensus estimate of ($0.03) by ($0.03). The business had revenue of $678.10 million for the quarter, compared to analysts’ expectations of $660.83 million. Rackspace Technology has set its FY 2026 guidance at -0.200–0.150 EPS. On average, research analysts predict that Rackspace Technology, Inc. will post -0.18 EPS for the current fiscal year.

Insider Activity at Rackspace Technology

In other news, CFO Mark A. Marino sold 48,099 shares of the firm’s stock in a transaction on Thursday, June 4th. The stock was 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 of the company’s stock, valued at $18,739,596.36. This trade represents a 1.41% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at 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 company insiders.

Institutional Investors Weigh In On Rackspace Technology

Hedge funds have recently bought and sold shares of the business. Vanguard Group Inc. boosted its position in Rackspace Technology by 6.1% during the 3rd quarter. Vanguard Group Inc. now owns 6,288,882 shares of the company’s stock worth $8,867,000 after acquiring an additional 359,087 shares during the period. Janus Henderson Group PLC increased its holdings in shares of Rackspace Technology by 179.7% in the 1st quarter. Janus Henderson Group PLC now owns 2,937,670 shares of the company’s stock valued at $2,878,000 after purchasing an additional 1,887,317 shares during the period. Geode Capital Management LLC increased its holdings in shares of Rackspace Technology by 4.2% in the 4th quarter. Geode Capital Management LLC now owns 2,408,000 shares of the company’s stock valued at $2,338,000 after purchasing an additional 96,760 shares during the period. Renaissance Technologies LLC increased its holdings in shares of Rackspace Technology by 14.0% in the 1st quarter. Renaissance Technologies LLC now owns 2,041,600 shares of the company’s stock valued at $2,000,000 after purchasing an additional 250,700 shares during the period. Finally, JPMorgan Chase & Co. lifted its position in shares of Rackspace Technology by 1.8% in the third quarter. JPMorgan Chase & Co. now owns 1,464,389 shares of the company’s stock worth $2,065,000 after purchasing an additional 26,510 shares in the last quarter. 82.48% of the stock is owned by hedge funds and other institutional investors.

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.