Rackspace Technology (NASDAQ:RXT) Shares Up 9.9% – Time to Buy?

Rackspace Technology, Inc. (NASDAQ:RXT)’s share price shot up 9.9% during trading on Thursday . The company traded as high as $4.36 and last traded at $4.3940. 16,611,255 shares were traded during mid-day trading, a decline of 32% from the average session volume of 24,436,400 shares. The stock had previously closed at $4.00.

Analyst Upgrades and Downgrades

A number of research firms have commented on RXT. Weiss Ratings reissued a “sell (d-)” rating on shares of Rackspace Technology in a report on Thursday, January 22nd. Royal Bank Of Canada raised their target price on Rackspace Technology from $1.75 to $2.50 and gave the company a “sector perform” rating in a report on Friday, February 27th. Three research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Rackspace Technology currently has an average rating of “Reduce” and an average price target of $1.95.

Rackspace Technology Price Performance

The firm has a market cap of $1.08 billion, a PE ratio of -7.10 and a beta of 2.23. The business has a 50-day moving average price of $2.20 and a two-hundred day moving average price of $1.49.

Rackspace Technology (NASDAQ:RXT) last announced its quarterly earnings results on Thursday, May 7th. The company reported ($0.06) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.03) by ($0.03). The firm had revenue of $678.10 million during the quarter, compared to analyst estimates of $660.83 million. Rackspace Technology has set its FY 2026 guidance at -0.200–0.150 EPS. Equities analysts expect that Rackspace Technology, Inc. will post -0.18 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CFO Mark A. Marino sold 234,683 shares of the firm’s stock in a transaction on Monday, February 23rd. The stock was sold at an average price of $1.63, for a total value of $382,533.29. Following the completion of the transaction, the chief financial officer owned 2,193,115 shares in the company, valued at $3,574,777.45. This trade represents a 9.67% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, EVP Dharmendra Kumar Sinha sold 188,123 shares of the firm’s stock in a transaction on Wednesday, March 18th. The shares were sold at an average price of $1.81, for a total value of $340,502.63. Following the completion of the transaction, the executive vice president owned 2,276,057 shares of the company’s stock, valued at approximately $4,119,663.17. This represents a 7.63% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 502,440 shares of company stock valued at $867,173. Company insiders own 2.90% of the company’s stock.

Institutional Trading of Rackspace Technology

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in RXT. AQR Capital Management LLC increased its position in Rackspace Technology by 228.6% during the 1st quarter. AQR Capital Management LLC now owns 264,565 shares of the company’s stock worth $447,000 after purchasing an additional 184,058 shares in the last quarter. Dynamic Technology Lab Private Ltd purchased a new stake in Rackspace Technology during the 1st quarter worth about $113,000. Geode Capital Management LLC increased its position in Rackspace Technology by 17.9% during the 2nd quarter. Geode Capital Management LLC now owns 2,064,549 shares of the company’s stock worth $2,643,000 after purchasing an additional 313,636 shares in the last quarter. Creative Planning increased its position in Rackspace Technology by 114.2% during the 2nd 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. Finally, JPMorgan Chase & Co. increased its position in Rackspace Technology by 25.5% during the 2nd quarter. JPMorgan Chase & Co. now owns 1,437,879 shares of the company’s stock worth $1,840,000 after purchasing an additional 292,249 shares in the last quarter. Hedge funds and other 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.