Royal Bank of Canada Cuts Rackspace Technology (NASDAQ:RXT) Price Target to $2.00

Rackspace Technology (NASDAQ:RXT) had its price target cut by Royal Bank of Canada from $3.00 to $2.00 in a research report released on Monday,Benzinga reports. They currently have a sector perform rating on the stock.

RXT has been the subject of several other research reports. Barclays cut their price target on Rackspace Technology from $2.00 to $1.00 and set an “underweight” rating for the company in a research note on Friday, April 25th. UBS Group cut their price target on Rackspace Technology from $2.95 to $1.90 and set a “neutral” rating for the company in a research note on Friday, May 9th.

Rackspace Technology Price Performance

Rackspace Technology stock opened at $1.28 on Monday. Rackspace Technology has a 12 month low of $1.22 and a 12 month high of $3.41. The business has a 50 day simple moving average of $1.55 and a 200-day simple moving average of $2.19. The stock has a market capitalization of $303.86 million, a PE ratio of -0.33 and a beta of 2.14.

Rackspace Technology (NASDAQ:RXT) last released its quarterly earnings results on Thursday, May 8th. The company reported ($0.06) EPS for the quarter, topping the consensus estimate of ($0.08) by $0.02. The company had revenue of $665.40 million for the quarter, compared to analysts’ expectations of $657.98 million. During the same quarter last year, the company earned ($0.11) EPS. Rackspace Technology’s revenue for the quarter was down 3.7% compared to the same quarter last year.

Insiders Place Their Bets

In other Rackspace Technology news, insider Srini Koushik sold 73,972 shares of the company’s stock in a transaction on Monday, March 17th. The stock was sold at an average price of $1.87, for a total value of $138,327.64. Following the sale, the insider now owns 935,114 shares of the company’s stock, valued at approximately $1,748,663.18. This represents a 7.33% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Mark A. Marino sold 202,230 shares of the company’s stock in a transaction on Monday, February 24th. The shares were sold at an average price of $2.61, for a total value of $527,820.30. Following the completion of the sale, the chief financial officer now directly owns 1,713,126 shares in the company, valued at $4,471,258.86. This trade represents a 10.56% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 1,154,204 shares of company stock worth $2,384,960. 2.90% of the stock is owned by corporate insiders.

Institutional Trading of Rackspace Technology

Several large investors have recently bought and sold shares of the company. Renaissance Technologies LLC grew its holdings in Rackspace Technology by 24.0% in the fourth quarter. Renaissance Technologies LLC now owns 1,929,127 shares of the company’s stock valued at $4,263,000 after purchasing an additional 373,627 shares during the last quarter. Geode Capital Management LLC grew its holdings in Rackspace Technology by 3.9% in the fourth quarter. Geode Capital Management LLC now owns 1,737,981 shares of the company’s stock valued at $3,842,000 after purchasing an additional 64,923 shares during the last quarter. D. E. Shaw & Co. Inc. grew its holdings in Rackspace Technology by 2.5% in the fourth quarter. D. E. Shaw & Co. Inc. now owns 1,203,806 shares of the company’s stock valued at $2,660,000 after purchasing an additional 29,047 shares during the last quarter. Jacobs Levy Equity Management Inc. grew its holdings in Rackspace Technology by 8.2% in the fourth quarter. Jacobs Levy Equity Management Inc. now owns 881,148 shares of the company’s stock valued at $1,947,000 after purchasing an additional 66,524 shares during the last quarter. Finally, Russell Investments Group Ltd. grew its holdings in Rackspace Technology by 4,053.5% in the first quarter. Russell Investments Group Ltd. now owns 846,112 shares of the company’s stock valued at $1,430,000 after purchasing an additional 825,741 shares during the last quarter. 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.