Rackspace Technology, Inc. (NASDAQ:RXT) Given Average Recommendation of “Reduce” by Brokerages

Rackspace Technology, Inc. (NASDAQ:RXT) has earned an average rating of “Reduce” from the six brokerages that are currently covering the company, MarketBeat.com reports. Two investment analysts have rated the stock with a sell rating and four have assigned a hold rating to the company. The average twelve-month price target among brokers that have issued ratings on the stock in the last year is $1.5125.

A number of analysts have recently issued reports on RXT shares. Wall Street Zen upgraded Rackspace Technology from a “sell” rating to a “hold” rating in a research report on Saturday, September 20th. Royal Bank Of Canada lowered their price target on shares of Rackspace Technology from $2.00 to $1.75 and set a “sector perform” rating on the stock in a report on Monday, November 10th. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of Rackspace Technology in a research report on Wednesday, October 8th.

Rackspace Technology Stock Performance

NASDAQ RXT opened at $1.03 on Monday. The stock has a market capitalization of $250.90 million, a PE ratio of -0.95 and a beta of 2.13. The stock has a 50-day simple moving average of $1.26 and a 200 day simple moving average of $1.30. Rackspace Technology has a twelve month low of $0.97 and a twelve month high of $3.03.

Rackspace Technology (NASDAQ:RXT) last issued its quarterly earnings results on Thursday, November 6th. The company reported ($0.05) EPS for the quarter, hitting analysts’ consensus estimates of ($0.05). The business had revenue of $671.20 million for the quarter, compared to analyst estimates of $666.83 million. The firm’s quarterly revenue was down .7% compared to the same quarter last year. During the same quarter last year, the firm earned ($0.04) earnings per share. Rackspace Technology has set its Q4 2025 guidance at -0.050–0.030 EPS.

Insider Buying and Selling

In other Rackspace Technology news, EVP Dharmendra Kumar Sinha sold 59,322 shares of the company’s stock in a transaction on Monday, December 1st. The stock was sold at an average price of $1.01, for a total value of $59,915.22. Following the sale, the executive vice president directly owned 2,509,573 shares in the company, valued at $2,534,668.73. This represents a 2.31% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. 2.90% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Rackspace Technology

A number of hedge funds have recently made changes to their positions in the company. R Squared Ltd increased its holdings in shares of Rackspace Technology by 74.3% during the third quarter. R Squared Ltd now owns 25,127 shares of the company’s stock worth $35,000 after buying an additional 10,707 shares in the last quarter. Engineers Gate Manager LP boosted its position in shares of Rackspace Technology by 47.1% in the 2nd quarter. Engineers Gate Manager LP now owns 34,777 shares of the company’s stock worth $45,000 after purchasing an additional 11,141 shares during the last quarter. Alliancebernstein L.P. lifted its stake in Rackspace Technology by 4.0% in the third quarter. Alliancebernstein L.P. now owns 290,750 shares of the company’s stock valued at $410,000 after buying an additional 11,300 shares in the last quarter. Creative Planning boosted its holdings in shares of Rackspace Technology by 114.2% in the second quarter. Creative Planning now owns 25,715 shares of the company’s stock valued at $33,000 after buying an additional 13,708 shares during the period. Finally, Intech Investment Management LLC raised its holdings in shares of Rackspace Technology by 45.4% during the second quarter. Intech Investment Management LLC now owns 51,692 shares of the company’s stock worth $66,000 after acquiring an additional 16,152 shares during the period. Institutional investors and hedge funds own 82.48% of the company’s stock.

Rackspace Technology Company Profile

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.