Rackspace Technology (NASDAQ:RXT) Sets New 52-Week High on Earnings Beat

Rackspace Technology, Inc. (NASDAQ:RXT)’s stock price hit a new 52-week high during trading on Wednesday following a better than expected earnings announcement. The company traded as high as $3.39 and last traded at $3.26, with a volume of 532325 shares trading hands. The stock had previously closed at $2.86.

The company reported ($0.04) EPS for the quarter, beating the consensus estimate of ($0.08) by $0.04. The company had revenue of $675.80 million during the quarter, compared to analysts’ expectations of $675.14 million. The business’s revenue for the quarter was down 7.7% on a year-over-year basis. During the same quarter in the prior year, the company earned ($0.04) earnings per share.

Wall Street Analysts Forecast Growth

Separately, UBS Group raised their target price on shares of Rackspace Technology from $2.10 to $2.30 and gave the stock a “neutral” rating in a research report on Friday, August 16th. One equities research analyst has rated the stock with a sell rating, four have given a hold rating and one has issued a buy rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Hold” and a consensus price target of $2.34.

Insider Buying and Selling at Rackspace Technology

In other news, CEO Amar Maletira sold 82,552 shares of Rackspace Technology stock in a transaction on Wednesday, October 2nd. The stock was sold at an average price of $2.37, for a total transaction of $195,648.24. Following the completion of the transaction, the chief executive officer now owns 4,983,984 shares of the company’s stock, valued at $11,812,042.08. The trade was a 0.00 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Over the last quarter, insiders sold 227,321 shares of company stock valued at $542,103. 2.00% of the stock is owned by company insiders.

Institutional Trading of Rackspace Technology

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in RXT. Creative Planning purchased a new stake in Rackspace Technology in the 3rd quarter valued at about $29,000. Susquehanna Fundamental Investments LLC purchased a new stake in Rackspace Technology in the 1st quarter valued at about $35,000. Allspring Global Investments Holdings LLC purchased a new stake in Rackspace Technology in the 2nd quarter valued at about $40,000. US Bancorp DE grew its holdings in Rackspace Technology by 10,766.2% in the 3rd quarter. US Bancorp DE now owns 16,408 shares of the company’s stock valued at $40,000 after buying an additional 16,257 shares during the period. Finally, Intech Investment Management LLC acquired a new position in shares of Rackspace Technology in the 3rd quarter valued at about $50,000. Hedge funds and other institutional investors own 82.48% of the company’s stock.

Rackspace Technology Trading Up 11.5 %

The firm has a market capitalization of $721.04 million, a price-to-earnings ratio of -0.86 and a beta of 1.97. The firm has a 50 day moving average price of $2.52 and a two-hundred day moving average price of $2.38.

Rackspace Technology Company Profile

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.