Rackspace Technology (NASDAQ:RXT) Trading 10.9% Higher – What’s Next?

Rackspace Technology, Inc. (NASDAQ:RXT) shares traded up 10.9% during mid-day trading on Monday . The company traded as high as $6.24 and last traded at $6.3430. 2,599,255 shares changed hands during trading, a decline of 89% from the average daily volume of 23,518,809 shares. The stock had previously closed at $5.72.

Wall Street Analyst Weigh In

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

Rackspace Technology Price Performance

The company has a market cap of $1.62 billion, a PE ratio of -10.73 and a beta of 2.99. The business has a fifty day simple moving average of $4.99 and a two-hundred day simple moving average of $2.51.

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 firm 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.

Insider Activity at Rackspace Technology

In other Rackspace Technology news, CFO Mark A. Marino sold 48,099 shares of the stock in a transaction dated Thursday, June 4th. The shares were sold at an average price of $5.56, for a total transaction of $267,430.44. Following the completion of the sale, 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 transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. 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 Inflows and Outflows

Several large investors have recently modified their holdings of the company. Abel Hall LLC acquired a new stake in Rackspace Technology in the first quarter valued at approximately $30,000. Creative Planning increased its position in shares of Rackspace Technology by 114.2% during the second quarter. Creative Planning now owns 25,715 shares of the company’s stock worth $33,000 after purchasing an additional 13,708 shares in the last quarter. SG Americas Securities LLC purchased a new stake in shares of Rackspace Technology during the 1st quarter valued at $34,000. Jump Financial LLC purchased a new stake in shares of Rackspace Technology during the 4th quarter valued at $34,000. Finally, State of Wyoming acquired a new stake in shares of Rackspace Technology in the 1st quarter worth $35,000. Institutional investors 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.