Rackspace Technology (NASDAQ:RXT) Shares Up 10.8% – Should You Buy?

Rackspace Technology, Inc. (NASDAQ:RXT) was up 10.8% on Tuesday. The company traded as high as $2.59 and last traded at $2.6150. Approximately 3,733,035 shares traded hands during mid-day trading, a decline of 79% from the average session volume of 17,433,563 shares. The stock had previously closed at $2.36.

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on RXT shares. Wall Street Zen cut Rackspace Technology from a “hold” rating to a “sell” rating in a report on Saturday, August 15th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Rackspace Technology in a research note on Friday, August 28th. One investment analyst has rated the stock with a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Reduce” and an average target price of $4.00.

Rackspace Technology Trading Down 15.3%

The stock’s fifty day moving average is $3.34 and its 200 day moving average is $3.23. The company has a market capitalization of $606.59 million, a P/E ratio of -3.66 and a beta of 3.29.

Rackspace Technology (NASDAQ:RXT) last announced its quarterly earnings results on Monday, August 10th. The company reported ($0.08) earnings per share for the quarter, beating the consensus estimate of ($0.09) by $0.01. The firm had revenue of $670.10 million for the quarter, compared to analysts’ expectations of $646.00 million. On average, analysts expect that Rackspace Technology, Inc. will post -0.28 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, EVP Dharmendra Sinha sold 107,002 shares of the business’s stock in a transaction that occurred on Wednesday, September 2nd. The stock was sold at an average price of $2.95, for a total transaction of $315,655.90. Following the transaction, the executive vice president directly owned 3,263,429 shares of the company’s stock, valued at approximately $9,627,115.55. The trade was a 3.17% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible 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. Also, CEO Gajakarnan Kandiah sold 498,728 shares of the company’s stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $3.21, for a total value of $1,600,916.88. Following the transaction, the chief executive officer owned 3,684,955 shares of the company’s stock, valued at approximately $11,828,705.55. This represents a 11.92% decrease in their position. The SEC filing for this sale provides additional information. 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. In the last quarter, insiders have sold 714,141 shares of company stock worth $2,299,799. Corporate insiders own 2.30% of the company’s stock.

Institutional Trading of Rackspace Technology

Several large investors have recently added to or reduced their stakes in RXT. Legal & General Group Plc bought a new stake in Rackspace Technology during the 2nd quarter valued at approximately $58,000. Quantbot Technologies LP bought a new position in shares of Rackspace Technology in the 2nd quarter worth approximately $63,000. Allworth Financial LP bought a new position in shares of Rackspace Technology in the 2nd quarter worth approximately $66,000. Strategic Investment Solutions Inc. IL bought a new position in shares of Rackspace Technology in the 2nd quarter worth approximately $67,000. Finally, State of Wyoming purchased a new position in shares of Rackspace Technology in the 3rd quarter valued at approximately $39,000. Institutional investors own 82.48% of the company’s stock.

Rackspace Technology Company Profile

Rackspace Technology, Inc is a technology services company that helps businesses design, build, operate and optimize information technology environments across public, private and hybrid clouds. Its offerings are intended to support organizations at various stages of cloud adoption, from migration and modernization to ongoing management and optimization.

The company provides managed cloud services for major cloud platforms, including Amazon Web Services, Microsoft Azure and Google Cloud.