Rackspace Technology (NASDAQ:RXT) Stock Price Down 12.3% – Should You Sell?

Rackspace Technology, Inc. (NASDAQ:RXT)’s share price fell 12.3% during trading on Thursday . The company traded as low as $5.75 and last traded at $5.6940. 7,703,295 shares were traded during mid-day trading, a decline of 67% from the average daily volume of 23,649,773 shares. The stock had previously closed at $6.49.

Wall Street Analysts Forecast Growth

Several brokerages have weighed in on RXT. Royal Bank Of Canada raised their price target on Rackspace Technology from $2.50 to $4.00 and gave the stock a “sector perform” rating in a report on Wednesday, June 17th. Weiss Ratings restated a “sell (d-)” rating on shares of Rackspace Technology in a report on Tuesday, June 2nd. Two investment analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Reduce” and an average target price of $2.70.

Rackspace Technology Stock Down 12.7%

The firm has a market capitalization of $1.41 billion, a price-to-earnings ratio of -9.30 and a beta of 2.99. The company’s 50 day moving average price is $4.82 and its 200 day moving average price is $2.45.

Rackspace Technology (NASDAQ:RXT) last released its earnings results on Thursday, May 7th. The company reported ($0.06) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.03) by ($0.03). The company had revenue of $678.10 million during the quarter, compared to analysts’ expectations of $660.83 million. Rackspace Technology has set its FY 2026 guidance at -0.200–0.150 EPS.

Insiders Place Their Bets

In other news, CFO Mark A. Marino sold 48,099 shares of the stock in a transaction dated Thursday, June 4th. The stock was sold at an average price of $5.56, for a total value of $267,430.44. Following the transaction, the chief financial officer directly owned 3,370,431 shares of the company’s stock, valued at approximately $18,739,596.36. This represents a 1.41% 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. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders own 2.30% of the company’s stock.

Institutional Investors Weigh In On Rackspace Technology

A number of institutional investors and hedge funds have recently modified their holdings of the company. Abel Hall LLC acquired a new position in Rackspace Technology in the 1st quarter worth approximately $30,000. Creative Planning lifted its stake in Rackspace Technology by 114.2% during the 2nd quarter. Creative Planning now owns 25,715 shares of the company’s stock valued at $33,000 after acquiring an additional 13,708 shares during the period. SG Americas Securities LLC acquired a new stake in Rackspace Technology during the 1st quarter valued at approximately $34,000. Jump Financial LLC purchased a new stake in shares of Rackspace Technology in the 4th quarter valued at $34,000. Finally, State of Wyoming acquired a new stake in shares of Rackspace Technology in the first quarter worth $35,000. 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.