Rackspace Technology (NASDAQ:RXT) Shares Gap Down – Should You Sell?

Rackspace Technology, Inc. (NASDAQ:RXT) gapped down prior to trading on Thursday. The stock had previously closed at $3.13, but opened at $2.90. Rackspace Technology shares last traded at $2.9650, with a volume of 2,184,987 shares trading hands.

Analyst Upgrades and Downgrades

RXT has been the topic of several recent analyst reports. Wall Street Zen cut Rackspace Technology from a “hold” rating to a “sell” rating in a research note on Saturday, August 15th. Weiss Ratings restated a “sell (d-)” rating on shares of Rackspace Technology in a research note on Friday, August 28th. One research analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, Rackspace Technology presently has an average rating of “Reduce” and a consensus price target of $4.00.

Rackspace Technology Stock Up 1.1%

The firm’s 50-day moving average is $3.31 and its 200-day moving average is $3.27. The company has a market cap of $806.67 million, a PE ratio of -5.44 and a beta of 3.29.

Rackspace Technology (NASDAQ:RXT) last issued its quarterly earnings data on Monday, November 9th. The company reported ($0.06) EPS for the quarter, topping the consensus estimate of ($0.08) by $0.02. The company had revenue of $609.10 million during the quarter, compared to analysts’ expectations of $573.96 million. As a group, equities research analysts anticipate that Rackspace Technology, Inc. will post -0.28 EPS for the current fiscal year.

Insider Transactions at Rackspace Technology

In related news, CEO Gajakarnan Kandiah sold 498,728 shares of Rackspace Technology stock in a transaction that occurred on Friday, September 4th. The stock was sold at an average price of $3.21, for a total transaction of $1,600,916.88. Following the sale, the chief executive officer directly owned 3,684,955 shares in the company, valued at $11,828,705.55. The trade was a 11.92% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available 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, Director Anthony Scott sold 48,780 shares of the company’s stock in a transaction on Friday, August 14th. The stock was sold at an average price of $4.25, for a total value of $207,315.00. Following the completion of the sale, the director directly owned 180,215 shares in the company, valued at approximately $765,913.75. The trade was a 21.30% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 714,141 shares of company stock worth $2,299,799 over the last 90 days. 2.30% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Rackspace Technology

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Independent Advisor Alliance purchased a new stake in shares of Rackspace Technology in the 3rd quarter worth about $189,000. Voya Investment Management LLC lifted its position in Rackspace Technology by 27.9% during the 3rd quarter. Voya Investment Management LLC now owns 22,175 shares of the company’s stock valued at $83,000 after acquiring an additional 4,843 shares during the period. Rock Creek Group LLC lifted its position in Rackspace Technology by 50.0% during the 3rd quarter. Rock Creek Group LLC now owns 225,000 shares of the company’s stock valued at $838,000 after acquiring an additional 75,000 shares during the period. Russell Investments Group Ltd. boosted its stake in 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 acquiring an additional 4,904 shares in the last quarter. Finally, StoneX Group Inc. purchased a new stake in Rackspace Technology in the third quarter worth about $105,000. Hedge funds and other institutional investors own 82.48% of the company’s stock.

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.