Rackspace Technology (NASDAQ:RXT) Stock Price Up 13.7% on Strong Earnings

Rackspace Technology, Inc. (NASDAQ:RXT)’s share price traded up 13.7% during trading on Monday after the company announced better than expected quarterly earnings. The stock traded as high as $2.81 and last traded at $2.8770. 2,596,826 shares were traded during mid-day trading, a decline of 85% from the average daily volume of 17,205,436 shares. The stock had previously closed at $2.53.

The company reported ($0.06) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.08) by $0.02. The company had revenue of $609.10 million for the quarter, compared to analyst estimates of $573.96 million.

Analyst Ratings Changes

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

Insiders Place Their Bets

In other Rackspace Technology news, Director Anthony Scott sold 48,780 shares of the business’s stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $4.25, for a total transaction of $207,315.00. Following the completion of the transaction, the director owned 180,215 shares of the company’s stock, valued at approximately $765,913.75. The trade was a 21.30% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Dharmendra Sinha sold 107,002 shares of the stock in a transaction dated Wednesday, September 2nd. The stock was sold at an average price of $2.95, for a total transaction of $315,655.90. Following the completion of the transaction, the executive vice president directly owned 3,263,429 shares of the company’s stock, valued at $9,627,115.55. This trade represents a 3.17% 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. Insiders have sold 714,141 shares of company stock valued at $2,299,799 in the last quarter. Corporate insiders own 2.30% of the company’s stock.

Hedge Funds Weigh In On Rackspace Technology

A number of institutional investors have recently added to or reduced their stakes in RXT. Voya Investment Management LLC boosted its position in Rackspace Technology by 27.9% in the third quarter. Voya Investment Management LLC now owns 22,175 shares of the company’s stock valued at $83,000 after buying an additional 4,843 shares in the last quarter. Russell Investments Group Ltd. increased its holdings in shares of Rackspace Technology by 8.7% during the third quarter. Russell Investments Group Ltd. now owns 61,491 shares of the company’s stock worth $229,000 after buying an additional 4,904 shares in the last quarter. ProShare Advisors LLC increased its holdings in shares of Rackspace Technology by 47.9% during the third quarter. ProShare Advisors LLC now owns 17,834 shares of the company’s stock worth $66,000 after buying an additional 5,779 shares in the last quarter. Legal & General Group Plc acquired a new position in shares of Rackspace Technology during the second quarter worth $58,000. Finally, Quantbot Technologies LP bought a new position in shares of Rackspace Technology in the 2nd quarter valued at $63,000. 82.48% of the stock is currently owned by institutional investors and hedge funds.

Rackspace Technology Trading Up 12.4%

The company has a market capitalization of $767.67 million, a P/E ratio of -5.19 and a beta of 3.29. The stock has a 50 day moving average price of $3.30 and a 200 day moving average price of $3.26.

About Rackspace Technology

Rackspace Technology, Inc. (NASDAQ: RXT) provides multicloud technology services to businesses and public-sector organizations. Its offerings include cloud strategy and migration, infrastructure management, application modernization, data services, and cybersecurity. The company helps customers operate workloads across public cloud platforms, including Amazon Web Services, Microsoft Azure, and Google Cloud, as well as private and hybrid cloud environments. Its services include consulting and ongoing support tailored to customers’ technology needs.