Rackspace Technology (NASDAQ:RXT) Shares Up 5.7% – Here’s Why

Rackspace Technology, Inc. (NASDAQ:RXT) shot up 5.7% during trading on Tuesday. The stock traded as high as $3.89 and last traded at $4.0050. Approximately 630,149 shares changed hands during trading, a decline of 97% from the average session volume of 19,146,838 shares. The stock had previously closed at $3.79.

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on RXT shares. Weiss Ratings reiterated a “sell (d-)” rating on shares of Rackspace Technology in a research note on Friday, August 28th. Wall Street Zen downgraded Rackspace Technology from a “hold” rating to a “sell” rating in a research report on Saturday, August 15th. Finally, Royal Bank Of Canada upped their target price on Rackspace Technology from $2.50 to $4.00 and gave the stock a “sector perform” rating in a research note on Wednesday, June 17th. One research analyst has rated the stock with a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Reduce” and a consensus target price of $4.00.

Rackspace Technology Trading Down 5.6%

The stock has a 50-day moving average price of $3.80 and a 200 day moving average price of $3.81. The stock has a market capitalization of $948.12 million, a price-to-earnings ratio of -5.72 and a beta of 3.05.

Rackspace Technology (NASDAQ:RXT) last issued its quarterly earnings results on Monday, August 10th. The company reported ($0.08) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.09) by $0.01. The business had revenue of $670.10 million for the quarter, compared to analysts’ expectations of $646.00 million. Equities research analysts anticipate that Rackspace Technology, Inc. will post -0.28 earnings per share for the current year.

Insider Activity at Rackspace Technology

In other news, CFO Mark Marino sold 51,373 shares of the business’s stock in a transaction dated Wednesday, September 2nd. The shares were sold at an average price of $2.95, for a total transaction of $151,550.35. Following the completion of the sale, the chief financial officer owned 2,865,853 shares of the company’s stock, valued at $8,454,266.35. The trade was a 1.76% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 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 firm’s stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $4.25, for a total transaction of $207,315.00. Following the completion of the transaction, the director directly owned 180,215 shares in the company, valued at $765,913.75. This represents a 21.30% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 714,141 shares of company stock worth $2,299,799 in the last ninety days. 2.30% of the stock is owned by company insiders.

Institutional Investors Weigh In On Rackspace Technology

A number of large investors have recently modified their holdings of RXT. Legal & General Group Plc acquired a new position in Rackspace Technology during the second quarter worth about $58,000. Quantbot Technologies LP purchased a new position in Rackspace Technology during the second quarter worth approximately $63,000. Allworth Financial LP acquired a new position in Rackspace Technology during the second quarter worth $66,000. Strategic Investment Solutions Inc. IL purchased a new stake in Rackspace Technology in the 2nd quarter valued at $67,000. Finally, Wealthcare Advisory Partners LLC acquired a new stake in shares of Rackspace Technology in the 2nd quarter worth $72,000. Hedge funds and other institutional investors own 82.48% of the company’s stock.

About Rackspace Technology

Rackspace Technology, Inc is a technology services company that helps businesses design, build, operate and optimize information technology environments. Its offerings span public, private and hybrid cloud infrastructure, managed hosting, application services, data services, cybersecurity and professional consulting.

The company supports major cloud platforms, including Amazon Web Services, Microsoft Azure and Google Cloud, and provides services such as cloud migration, modernization, managed operations, application development and infrastructure management.