Royal Bank Of Canada Cuts Rackspace Technology (NASDAQ:RXT) Price Target to $1.75

Rackspace Technology (NASDAQ:RXT) had its price target cut by Royal Bank Of Canada from $2.00 to $1.75 in a research report issued to clients and investors on Monday,Benzinga reports. The brokerage presently has a “sector perform” rating on the stock. Royal Bank Of Canada’s target price points to a potential upside of 40.00% from the stock’s previous close.

RXT has been the topic of a number of other reports. BMO Capital Markets lowered their target price on shares of Rackspace Technology from $1.75 to $1.40 and set a “market perform” rating on the stock in a research report on Tuesday, August 12th. Wall Street Zen raised Rackspace Technology from a “sell” rating to a “hold” rating in a research note on Saturday, September 20th. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of Rackspace Technology in a research note on Wednesday, October 8th. Four equities research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Reduce” and a consensus target price of $1.51.

Rackspace Technology Price Performance

RXT traded up $0.01 during trading hours on Monday, reaching $1.25. The company’s stock had a trading volume of 266,389 shares, compared to its average volume of 978,427. Rackspace Technology has a fifty-two week low of $1.00 and a fifty-two week high of $3.41. The stock has a market cap of $299.20 million, a PE ratio of -1.16 and a beta of 2.07. The business’s 50-day moving average is $1.47 and its 200-day moving average is $1.35.

Rackspace Technology (NASDAQ:RXT) last released its earnings results on Thursday, November 6th. The company reported ($0.05) earnings per share for the quarter, meeting the consensus estimate of ($0.05). The firm had revenue of $671.20 million during the quarter, compared to analyst estimates of $666.83 million. During the same period in the prior year, the firm earned ($0.04) earnings per share. The business’s revenue was down .7% compared to the same quarter last year. Rackspace Technology has set its Q4 2025 guidance at -0.050–0.030 EPS.

Insider Activity at Rackspace Technology

In other Rackspace Technology news, Director Anthony Scott sold 40,000 shares of the company’s stock in a transaction dated Monday, September 8th. The shares were sold at an average price of $1.43, for a total value of $57,200.00. Following the sale, the director owned 191,045 shares of the company’s stock, valued at $273,194.35. This represents a 17.31% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Amar Maletira sold 1,780,619 shares of Rackspace Technology stock in a transaction that occurred on Monday, September 15th. The stock was sold at an average price of $1.35, for a total value of $2,403,835.65. Following the transaction, the chief executive officer owned 4,608,619 shares of the company’s stock, valued at $6,221,635.65. This represents a 27.87% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 2.90% of the stock is owned by insiders.

Institutional Investors Weigh In On Rackspace Technology

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Vanguard Group Inc. lifted its stake in shares of Rackspace Technology by 6.1% during the third quarter. Vanguard Group Inc. now owns 6,288,882 shares of the company’s stock valued at $8,867,000 after buying an additional 359,087 shares during the period. JPMorgan Chase & Co. raised its holdings in Rackspace Technology by 1.8% in the 3rd quarter. JPMorgan Chase & Co. now owns 1,464,389 shares of the company’s stock valued at $2,065,000 after acquiring an additional 26,510 shares during the last quarter. Savant Capital LLC acquired a new position in Rackspace Technology in the 3rd quarter valued at $33,000. State of Wyoming purchased a new position in shares of Rackspace Technology during the 3rd quarter worth $248,000. Finally, AustralianSuper Pty Ltd purchased a new stake in shares of Rackspace Technology in the third quarter valued at $2,276,000. 82.48% of the stock is currently owned by hedge funds and other institutional investors.

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.