Rackspace Technology (NASDAQ:RXT) Stock Price Down 4.6% – What’s Next?

Rackspace Technology, Inc. (NASDAQ:RXT)’s share price fell 4.6% during mid-day trading on Wednesday . The stock traded as low as $2.24 and last traded at $2.26. Approximately 178,207 shares were traded during mid-day trading, a decline of 84% from the average session volume of 1,102,356 shares. The stock had previously closed at $2.37.

Analyst Ratings Changes

A number of brokerages have issued reports on RXT. Barclays increased their price objective on shares of Rackspace Technology from $1.00 to $2.00 and gave the company an “underweight” rating in a report on Monday. UBS Group raised their target price on shares of Rackspace Technology from $2.10 to $2.30 and gave the company a “neutral” rating in a report on Friday, August 16th. Two analysts have rated the stock with a sell rating, four have assigned a hold rating and one has given a buy rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Hold” and an average target price of $2.29.

Rackspace Technology Price Performance

The firm has a market capitalization of $516.58 million, a P/E ratio of -0.64 and a beta of 1.97. The firm has a 50-day moving average price of $2.55 and a two-hundred day moving average price of $2.41.

Rackspace Technology (NASDAQ:RXT) last released its earnings results on Tuesday, November 12th. The company reported ($0.04) earnings per share for the quarter, topping the consensus estimate of ($0.07) by $0.03. The business had revenue of $675.80 million for the quarter, compared to the consensus estimate of $675.14 million. The firm’s revenue for the quarter was down 7.7% compared to the same quarter last year. During the same quarter last year, the business posted ($0.04) earnings per share. Sell-side analysts predict that Rackspace Technology, Inc. will post -0.27 earnings per share for the current fiscal year.

Insider Activity

In other Rackspace Technology news, CEO Amar Maletira sold 84,823 shares of Rackspace Technology stock in a transaction dated Monday, September 30th. The stock was sold at an average price of $2.42, for a total value of $205,271.66. Following the transaction, the chief executive officer now owns 5,158,399 shares in the company, valued at $12,483,325.58. The trade was a 1.62 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Insiders own 2.00% of the company’s stock.

Institutional Investors Weigh In On Rackspace Technology

Institutional investors and hedge funds have recently modified their holdings of the company. Creative Planning acquired a new stake in shares of Rackspace Technology during the third quarter worth about $29,000. Allspring Global Investments Holdings LLC acquired a new position in shares of Rackspace Technology during the 2nd quarter worth approximately $40,000. US Bancorp DE raised its stake in shares of Rackspace Technology by 10,766.2% during the 3rd quarter. US Bancorp DE now owns 16,408 shares of the company’s stock worth $40,000 after buying an additional 16,257 shares during the period. Intech Investment Management LLC acquired a new position in shares of Rackspace Technology during the 3rd quarter worth approximately $50,000. Finally, Mitsubishi UFJ Trust & Banking Corp raised its stake in shares of Rackspace Technology by 98.2% during the 1st quarter. Mitsubishi UFJ Trust & Banking Corp now owns 33,263 shares of the company’s stock worth $51,000 after buying an additional 16,484 shares during the period. 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.