Rackspace Technology, Inc. (NASDAQ:RXT) Receives Consensus Recommendation of “Hold” from Brokerages

Shares of Rackspace Technology, Inc. (NASDAQ:RXT) have received an average rating of “Hold” from the six brokerages that are currently covering the company, MarketBeat Ratings reports. One investment analyst has rated the stock with a sell rating, four have issued a hold rating and one has given a buy rating to the company. The average 1 year target price among analysts that have issued ratings on the stock in the last year is $2.47.

Separately, Barclays raised their price target on shares of Rackspace Technology from $1.00 to $2.00 and gave the stock an “underweight” rating in a research note on Monday, November 18th.

Rackspace Technology Stock Performance

Shares of NASDAQ RXT opened at $2.90 on Friday. The stock has a market cap of $659.95 million, a price-to-earnings ratio of -0.83 and a beta of 2.04. Rackspace Technology has a 52 week low of $1.45 and a 52 week high of $3.41. The company’s 50-day moving average price is $2.43 and its 200 day moving average price is $2.44.

Rackspace Technology (NASDAQ:RXT) last released its quarterly earnings results on Tuesday, November 12th. The company reported ($0.04) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.07) by $0.03. The firm had revenue of $675.80 million for the quarter, compared to analyst estimates of $675.14 million. During the same period in the prior year, the business earned ($0.04) earnings per share. Rackspace Technology’s revenue for the quarter was down 7.7% on a year-over-year basis. As a group, research analysts expect that Rackspace Technology will post -0.27 earnings per share for the current year.

Insider Buying and Selling at Rackspace Technology

In other news, EVP Dharmendra Kumar Sinha sold 88,548 shares of the firm’s stock in a transaction that occurred on Friday, November 29th. The shares were sold at an average price of $2.67, for a total transaction of $236,423.16. Following the completion of 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 trade represents a 3.65 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Mark A. Marino sold 14,458 shares of the firm’s stock in a transaction that occurred on Monday, January 27th. The stock was sold at an average price of $2.34, for a total transaction of $33,831.72. Following the sale, the chief financial officer now directly owns 1,915,356 shares of the company’s stock, valued at $4,481,933.04. The trade was a 0.75 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 209,322 shares of company stock valued at $542,829 over the last 90 days. 2.00% of the stock is owned by corporate insiders.

Institutional Trading of Rackspace Technology

A number of hedge funds have recently made changes to their positions in RXT. The Manufacturers Life Insurance Company grew its position in shares of Rackspace Technology by 44.7% during the second quarter. The Manufacturers Life Insurance Company now owns 30,019 shares of the company’s stock worth $89,000 after buying an additional 9,275 shares in the last quarter. SG Americas Securities LLC boosted its holdings in Rackspace Technology by 64.7% in the third quarter. SG Americas Securities LLC now owns 34,467 shares of the company’s stock worth $84,000 after purchasing an additional 13,543 shares during the period. Creative Planning acquired a new position in Rackspace Technology in the third quarter worth $29,000. US Bancorp DE boosted its holdings in Rackspace Technology by 10,766.2% in the third quarter. US Bancorp DE now owns 16,408 shares of the company’s stock worth $40,000 after purchasing an additional 16,257 shares during the period. Finally, GSA Capital Partners LLP acquired a new position in Rackspace Technology in the third quarter worth $412,000. Institutional investors and hedge funds own 82.48% of the company’s stock.

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.