Rackspace Technology’s (RXT) “Sell (D-)” Rating Reaffirmed at Weiss Ratings

Rackspace Technology (NASDAQ:RXT)‘s stock had its “sell (d-)” rating restated by equities research analysts at Weiss Ratings in a research note issued on Wednesday,Weiss Ratings reports.

Several other equities research analysts have also issued reports on the stock. BMO Capital Markets decreased their price target on shares of Rackspace Technology from $1.75 to $1.40 and set a “market perform” rating for the company in a research note on Tuesday, August 12th. Wall Street Zen upgraded shares of Rackspace Technology from a “sell” rating to a “hold” rating in a research note on Saturday, September 20th. Four analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Reduce” and a consensus target price of $1.58.

Rackspace Technology Stock Up 6.4%

Shares of RXT stock opened at $1.50 on Wednesday. The company has a 50 day moving average of $1.33 and a 200-day moving average of $1.34. Rackspace Technology has a 12-month low of $1.00 and a 12-month high of $3.41. The firm has a market cap of $359.04 million, a P/E ratio of -0.93 and a beta of 2.09.

Rackspace Technology (NASDAQ:RXT) last issued its quarterly earnings results on Thursday, August 7th. The company reported ($0.06) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.05) by ($0.01). The firm had revenue of $666.30 million for the quarter, compared to the consensus estimate of $658.86 million. During the same period in the prior year, the firm posted ($0.08) EPS. The firm’s revenue was down 2.7% compared to the same quarter last year. Rackspace Technology has set its Q3 2025 guidance at -0.060–0.040 EPS.

Insider Activity at Rackspace Technology

In related news, CEO Amar Maletira sold 1,780,619 shares of the firm’s stock in a transaction that occurred on Monday, September 15th. The shares were sold at an average price of $1.35, for a total value of $2,403,835.65. Following the completion of the transaction, the chief executive officer directly owned 4,608,619 shares of the company’s stock, valued at approximately $6,221,635.65. This trade represents a 27.87% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Anthony Scott sold 40,000 shares of the firm’s stock in a transaction that occurred on Monday, September 8th. The stock was sold at an average price of $1.43, for a total transaction of $57,200.00. Following the completion of the transaction, the director directly owned 191,045 shares of the company’s stock, valued at approximately $273,194.35. This trade represents a 17.31% decrease in their ownership of the stock. The disclosure for this sale can be found here. 2.90% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of RXT. Cerity Partners LLC bought a new position in Rackspace Technology in the 1st quarter valued at $26,000. Quadrature Capital Ltd bought a new position in Rackspace Technology in the 2nd quarter valued at $26,000. Creative Planning boosted its holdings 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 purchasing an additional 13,708 shares during the period. Jump Financial LLC bought a new position in Rackspace Technology in the 1st quarter valued at $40,000. Finally, Engineers Gate Manager LP boosted its holdings in Rackspace Technology by 47.1% in the 2nd quarter. Engineers Gate Manager LP now owns 34,777 shares of the company’s stock valued at $45,000 after purchasing an additional 11,141 shares during the period. 82.48% of the stock is owned by institutional investors.

About Rackspace Technology

Rackspace Technology, Inc operates as a multi cloud technology services company in the Americas, Europe, the Middle East, Africa, and The Asia-Pacific region. It operates through three segments: Multicloud Services, Apps & Cross Platform, and OpenStack Public Cloud. The company provides public and private cloud managed services, which allow customers to determine, manage, and optimize the right infrastructure, platforms, and services; professional services related to designing and building multi cloud solutions and cloud-native applications; and managed hosting and colocation services.