Rackspace Technology (NASDAQ:RXT) Trading Up 7.4% – Still a Buy?

Rackspace Technology, Inc. (NASDAQ:RXT)’s stock price was up 7.4% on Monday . The company traded as high as $2.77 and last traded at $2.77. Approximately 55,788 shares were traded during trading, a decline of 95% from the average daily volume of 1,096,131 shares. The stock had previously closed at $2.58.

Wall Street Analyst Weigh In

Several research firms have issued reports on RXT. UBS Group upped their price target on Rackspace Technology from $2.10 to $2.30 and gave the company a “neutral” rating in a report on Friday, August 16th. Barclays boosted their target price on Rackspace Technology from $1.00 to $2.00 and gave the stock an “underweight” rating in a research report on Monday, November 18th. One analyst has rated the stock with a sell rating, four have assigned a hold rating and one has assigned a buy rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $2.47.

Rackspace Technology Price Performance

The company’s 50 day simple moving average is $2.55 and its two-hundred day simple moving average is $2.42.

Rackspace Technology (NASDAQ:RXT) last announced its quarterly 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 firm had revenue of $675.80 million for the quarter, compared to analyst estimates of $675.14 million. During the same quarter in the prior year, the firm earned ($0.04) earnings per share. The firm’s quarterly revenue was down 7.7% compared to the same quarter last year. Equities research analysts expect that Rackspace Technology, Inc. will post -0.27 earnings per share for the current year.

Insider Transactions at Rackspace Technology

In related news, CEO Amar Maletira sold 84,823 shares of the firm’s stock in a transaction that occurred on 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 directly owns 5,158,399 shares of the company’s stock, valued at approximately $12,483,325.58. This trade represents a 1.62 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. 2.00% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Rackspace Technology

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Creative Planning bought a new position in shares of Rackspace Technology in the third quarter worth about $29,000. Allspring Global Investments Holdings LLC acquired a new stake in Rackspace Technology in the 2nd quarter valued at approximately $40,000. US Bancorp DE increased its position in Rackspace Technology by 10,766.2% in 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 third quarter worth approximately $50,000. Finally, The Manufacturers Life Insurance Company boosted its position in shares of Rackspace Technology by 44.7% in the second quarter. The Manufacturers Life Insurance Company now owns 30,019 shares of the company’s stock valued at $89,000 after acquiring an additional 9,275 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.