Rackspace Technology (NASDAQ:RXT) Stock Price Down 3.2% – Time to Sell?

Rackspace Technology, Inc. (NASDAQ:RXT) shares dropped 3.2% on Friday . The stock traded as low as $0.6115 and last traded at $0.6116. Approximately 1,509,375 shares were traded during mid-day trading, an increase of 18% from the average daily volume of 1,277,883 shares. The stock had previously closed at $0.6318.

Analyst Upgrades and Downgrades

Several brokerages have commented on RXT. Weiss Ratings reiterated a “sell (d-)” rating on shares of Rackspace Technology in a report on Thursday, January 22nd. Royal Bank Of Canada decreased their price objective on shares of Rackspace Technology from $2.00 to $1.75 and set a “sector perform” rating for the company in a report on Monday, November 10th. Four analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Reduce” and a consensus price target of $1.51.

Rackspace Technology Stock Down 3.2%

The firm has a market cap of $148.98 million, a P/E ratio of -0.57 and a beta of 2.13. The stock’s 50-day moving average is $0.98 and its 200-day moving average is $1.23.

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

Insiders Place Their Bets

In related news, EVP Dharmendra Kumar Sinha sold 59,322 shares of the business’s stock in a transaction dated Monday, December 1st. The stock was sold at an average price of $1.01, for a total transaction of $59,915.22. Following the transaction, the executive vice president directly owned 2,509,573 shares in the company, valued at $2,534,668.73. The trade was a 2.31% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. 2.90% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Rackspace Technology

Institutional investors have recently bought and sold shares of the business. Quadrature Capital Ltd bought a new stake in Rackspace Technology in the 2nd quarter valued at $26,000. Savant Capital LLC bought a new position in Rackspace Technology during the third quarter worth about $33,000. Creative Planning grew its stake in shares of Rackspace Technology by 114.2% in the 2nd quarter. Creative Planning now owns 25,715 shares of the company’s stock valued at $33,000 after purchasing an additional 13,708 shares during the period. R Squared Ltd raised its holdings in shares of Rackspace Technology by 74.3% in the 3rd quarter. R Squared Ltd now owns 25,127 shares of the company’s stock worth $35,000 after buying an additional 10,707 shares in the last quarter. Finally, Engineers Gate Manager LP lifted its position in shares of Rackspace Technology by 47.1% during the 2nd quarter. Engineers Gate Manager LP now owns 34,777 shares of the company’s stock worth $45,000 after buying an additional 11,141 shares during the period. Institutional investors and hedge funds own 82.48% of the company’s stock.

About Rackspace Technology

Rackspace Technology (NASDAQ: RXT) is a leading provider of managed multi-cloud solutions and services, specializing in the deployment, management and optimization of public and private cloud environments. The company helps organizations design and operate applications across platforms such as Amazon Web Services (AWS), Microsoft Azure, Google Cloud and its own private cloud infrastructure. Rackspace’s core offerings include cloud migration, application modernization, data protection, security services and 24x7x365 operational support.

Beyond cloud hosting, Rackspace offers a range of professional services designed to accelerate digital transformation initiatives.