Rackspace Technology (NASDAQ:RXT) Trading Up 5.2% – Here’s What Happened

Rackspace Technology, Inc. (NASDAQ:RXT)’s stock price rose 5.2% during trading on Thursday . The stock traded as high as $2.54 and last traded at $2.55. Approximately 227,271 shares were traded during mid-day trading, a decline of 68% from the average daily volume of 702,383 shares. The stock had previously closed at $2.42.

Analysts Set New Price Targets

Separately, Barclays lifted their price objective on Rackspace Technology from $1.00 to $2.00 and gave the stock an “underweight” rating in a research note on Monday, November 18th. One equities research analyst has rated the stock with a sell rating, four have issued a hold rating and one has assigned a buy rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and an average price target of $2.47.

Rackspace Technology Stock Performance

The business has a 50 day moving average of $2.42 and a 200-day moving average of $2.44. The company has a market capitalization of $585.99 million, a P/E ratio of -0.74 and a beta of 2.02.

Rackspace Technology (NASDAQ:RXT) last announced its earnings results on Tuesday, November 12th. The company reported ($0.04) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.07) by $0.03. The company had revenue of $675.80 million for the quarter, compared to the consensus estimate of $675.14 million. During the same quarter in the previous year, the firm earned ($0.04) earnings per share. The company’s revenue for the quarter was down 7.7% compared to the same quarter last year. As a group, equities analysts forecast that Rackspace Technology, Inc. will post -0.27 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CTO Srini Koushik sold 19,470 shares of the firm’s stock in a transaction that occurred on Friday, November 29th. The stock was sold at an average price of $2.67, for a total transaction of $51,984.90. Following the completion of the transaction, the chief technology officer now owns 1,026,279 shares of the company’s stock, valued at $2,740,164.93. This trade represents a 1.86 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Dharmendra Kumar Sinha sold 88,548 shares of the firm’s stock in a transaction dated Friday, November 29th. The shares were sold at an average price of $2.67, for a total transaction of $236,423.16. Following the sale, the executive vice president now owns 2,334,166 shares of the company’s stock, valued at approximately $6,232,223.22. This represents a 3.65 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 194,864 shares of company stock valued at $508,997 in the last ninety days. Company insiders own 2.00% of the company’s stock.

Institutional Investors Weigh In On Rackspace Technology

A number of large investors have recently added to or reduced their stakes in the stock. SG Americas Securities LLC increased its holdings in Rackspace Technology by 64.7% in the 4th quarter. SG Americas Securities LLC now owns 56,778 shares of the company’s stock worth $125,000 after acquiring an additional 22,311 shares in the last quarter. Franklin Resources Inc. bought a new stake in shares of Rackspace Technology in the third quarter worth about $443,000. Barclays PLC lifted its position in shares of Rackspace Technology by 86.1% in the third quarter. Barclays PLC now owns 109,997 shares of the company’s stock worth $270,000 after buying an additional 50,896 shares in the last quarter. Public Employees Retirement System of Ohio boosted its stake in Rackspace Technology by 32.0% during the third quarter. Public Employees Retirement System of Ohio now owns 127,851 shares of the company’s stock valued at $313,000 after buying an additional 30,983 shares during the last quarter. Finally, Jane Street Group LLC grew its holdings in Rackspace Technology by 27.4% during the 3rd quarter. Jane Street Group LLC now owns 773,454 shares of the company’s stock valued at $1,895,000 after buying an additional 166,528 shares in the last quarter. Institutional investors own 82.48% of the company’s stock.

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.