Rackspace Technology (NASDAQ:RXT) Shares Gap Down – Here’s What Happened

Rackspace Technology, Inc. (NASDAQ:RXT)’s share price gapped down before the market opened on Friday . The stock had previously closed at $7.29, but opened at $6.74. Rackspace Technology shares last traded at $7.2240, with a volume of 7,711,203 shares trading hands.

Wall Street Analyst Weigh In

Several analysts recently weighed in on RXT shares. Weiss Ratings restated a “sell (d-)” rating on shares of Rackspace Technology in a report on Thursday, January 22nd. Royal Bank Of Canada increased their target price on shares of Rackspace Technology from $1.75 to $2.50 and gave the stock a “sector perform” rating in a report on Friday, February 27th. Three research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, Rackspace Technology has an average rating of “Reduce” and an average price target of $1.95.

Rackspace Technology Price Performance

The business has a 50-day moving average of $2.00 and a two-hundred day moving average of $1.40. The company has a market cap of $1.56 billion, a P/E ratio of -10.39 and a beta of 2.23.

Rackspace Technology (NASDAQ:RXT) last released its quarterly earnings results on Thursday, May 7th. The company reported ($0.06) EPS for the quarter, missing the consensus estimate of ($0.03) by ($0.03). The business had revenue of $678.10 million for the quarter, compared to analyst estimates of $660.83 million. Rackspace Technology has set its FY 2026 guidance at -0.200–0.150 EPS. Equities analysts anticipate that Rackspace Technology, Inc. will post -0.18 EPS for the current fiscal year.

Insider Buying and Selling

In other Rackspace Technology news, CFO Mark A. Marino sold 14,058 shares of the firm’s stock in a transaction that occurred on Wednesday, March 18th. The shares were sold at an average price of $1.81, for a total value of $25,444.98. Following the completion of the sale, the chief financial officer directly owned 2,158,874 shares in the company, valued at $3,907,561.94. This trade represents a 0.65% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Dharmendra Kumar Sinha sold 188,123 shares of Rackspace Technology stock in a transaction on Wednesday, March 18th. The stock was sold at an average price of $1.81, for a total transaction of $340,502.63. Following the completion of the transaction, the executive vice president directly owned 2,276,057 shares in the company, valued at $4,119,663.17. This represents a 7.63% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 502,440 shares of company stock valued at $867,173 in the last three months. 2.90% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Rackspace Technology

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Abel Hall LLC acquired a new stake in Rackspace Technology in the first quarter worth about $30,000. Creative Planning increased its holdings in shares of Rackspace Technology by 114.2% during the second quarter. Creative Planning now owns 25,715 shares of the company’s stock valued at $33,000 after acquiring an additional 13,708 shares in the last quarter. Savant Capital LLC purchased a new position in shares of Rackspace Technology in the 3rd quarter valued at approximately $33,000. SG Americas Securities LLC purchased a new position in shares of Rackspace Technology in the 1st quarter valued at approximately $34,000. Finally, Jump Financial LLC acquired a new stake in Rackspace Technology in the 4th quarter worth approximately $34,000. 82.48% of the stock is currently owned by hedge funds and other institutional investors.

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.