Rackspace Technology Sees Unusually Large Options Volume (NASDAQ:RXT)

Rackspace Technology, Inc. (NASDAQ:RXT) was the target of some unusual options trading activity on Wednesday. Stock investors purchased 20,449 call options on the company. This represents an increase of approximately 4,656% compared to the typical volume of 430 call options.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on RXT. Royal Bank Of Canada lowered their price objective on Rackspace Technology from $2.00 to $1.75 and set a “sector perform” rating for the company in a research report on Monday, November 10th. Weiss Ratings reissued a “sell (d-)” rating on shares of Rackspace Technology in a research note on Thursday, January 22nd. Four research analysts have rated the stock with a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Reduce” and an average price target of $1.51.

Rackspace Technology Stock Up 211.5%

RXT stock traded up $0.89 during midday trading on Wednesday, reaching $1.31. 275,279,873 shares of the company’s stock traded hands, compared to its average volume of 9,550,363. The company has a market cap of $317.88 million, a price-to-earnings ratio of -1.22 and a beta of 2.18. The firm’s fifty day moving average price is $0.84 and its 200-day moving average price is $1.15. Rackspace Technology has a 52 week low of $0.39 and a 52 week high of $3.03.

Insiders Place Their Bets

In other news, EVP Dharmendra Kumar Sinha sold 59,322 shares of the firm’s stock in a transaction on Monday, December 1st. The shares were sold at an average price of $1.01, for a total transaction of $59,915.22. Following the completion of the transaction, the executive vice president owned 2,509,573 shares of the company’s stock, valued at approximately $2,534,668.73. This trade represents a 2.31% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 2.90% of the stock is owned by insiders.

Institutional Investors Weigh In On Rackspace Technology

Several institutional investors have recently bought and sold shares of RXT. Quadrature Capital Ltd purchased a new position in Rackspace Technology during the 2nd quarter worth $26,000. Savant Capital LLC purchased a new stake in shares of Rackspace Technology in the third quarter valued at about $33,000. R Squared Ltd lifted its position 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 valued at $35,000 after purchasing an additional 10,707 shares in the last quarter. Creative Planning lifted its position in shares of Rackspace Technology by 114.2% during the second quarter. Creative Planning now owns 25,715 shares of the company’s stock valued at $33,000 after purchasing an additional 13,708 shares in the last quarter. Finally, Engineers Gate Manager LP boosted its holdings in Rackspace Technology by 47.1% during the second 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. 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.