Rackspace Technology (NASDAQ:RXT) Upgraded to “Buy” by Zacks Investment Research

Zacks Investment Research upgraded shares of Rackspace Technology (NASDAQ:RXT) from a strong sell rating to a buy rating in a research note issued to investors on Wednesday, Zacks.com reports. The firm currently has $17.00 price target on the stock.

According to Zacks, “Rackspace Technology Inc. provides technology services which design, build and operate cloud environments. Rackspace Technology Inc. is based in SAN ANTONIO. “

RXT has been the subject of a number of other reports. Credit Suisse Group reduced their price objective on shares of Rackspace Technology from $27.00 to $21.00 and set an outperform rating for the company in a research report on Thursday, August 12th. Deutsche Bank Aktiengesellschaft reduced their target price on shares of Rackspace Technology from $26.00 to $21.00 and set a buy rating for the company in a research report on Thursday, August 12th. JPMorgan Chase & Co. downgraded shares of Rackspace Technology from an overweight rating to a neutral rating and reduced their target price for the company from $19.00 to $18.00 in a research report on Tuesday, August 17th. Royal Bank of Canada reduced their target price on shares of Rackspace Technology from $27.00 to $24.00 and set an outperform rating for the company in a research report on Thursday, August 12th. They noted that the move was a valuation call. Finally, reissued a buy rating and set a $28.00 target price on shares of Rackspace Technology in a research report on Tuesday, June 29th. Three analysts have rated the stock with a hold rating and eight have assigned a buy rating to the company. According to MarketBeat.com, Rackspace Technology presently has a consensus rating of Buy and an average target price of $21.75.

RXT opened at $15.06 on Wednesday. The company has a debt-to-equity ratio of 2.72, a current ratio of 1.12 and a quick ratio of 1.12. Rackspace Technology has a fifty-two week low of $13.07 and a fifty-two week high of $26.43. The firm has a market capitalization of $3.15 billion and a PE ratio of -11.16. The company’s 50-day moving average is $14.48 and its 200 day moving average is $18.92.

Rackspace Technology (NASDAQ:RXT) last issued its quarterly earnings data on Wednesday, August 11th. The company reported $0.24 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.23 by $0.01. Rackspace Technology had a negative net margin of 9.26% and a positive return on equity of 13.74%. The business had revenue of $743.80 million during the quarter, compared to the consensus estimate of $741.93 million. As a group, analysts expect that Rackspace Technology will post 0.95 EPS for the current year.

In related news, Director Timothy Campos sold 11,992 shares of the firm’s stock in a transaction that occurred on Friday, July 16th. The shares were sold at an average price of $19.17, for a total value of $229,886.64. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.76% of the stock is currently owned by company insiders.

Hedge funds and other institutional investors have recently bought and sold shares of the business. Ameritas Investment Partners Inc. lifted its stake in Rackspace Technology by 46.3% in the 2nd quarter. Ameritas Investment Partners Inc. now owns 4,217 shares of the company’s stock worth $83,000 after purchasing an additional 1,335 shares in the last quarter. Ocean Capital Management LLC lifted its stake in Rackspace Technology by 23.9% in the 2nd quarter. Ocean Capital Management LLC now owns 10,786 shares of the company’s stock worth $212,000 after purchasing an additional 2,084 shares in the last quarter. Eaton Vance Management purchased a new stake in Rackspace Technology in the 1st quarter worth approximately $218,000. Jump Financial LLC purchased a new stake in Rackspace Technology in the 2nd quarter worth approximately $237,000. Finally, DAVENPORT & Co LLC purchased a new stake in Rackspace Technology in the 2nd quarter worth approximately $243,000. Institutional investors and hedge funds own 86.71% of the company’s stock.

Rackspace Technology Company Profile

Rackspace Technology, Inc operates as a multi cloud technology services company worldwide. It operates through Multicloud Services and Apps & Cross Platform segments. The company's Multicloud Services segment provides public and private cloud managed services, which allow customers to determine, manage, and optimize the right infrastructure, platforms, and services; and professional services related to designing and building multi cloud solutions and cloud-native applications.

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