Rackspace Technology (NASDAQ:RXT) Shares Down 6.5% – Here’s Why

Rackspace Technology, Inc. (NASDAQ:RXT) shares were down 6.5% during mid-day trading on Wednesday . The stock traded as low as $2.27 and last traded at $2.30. Approximately 19,780,159 shares traded hands during trading, a decline of 37% from the average daily volume of 31,247,121 shares. The stock had previously closed at $2.46.

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on RXT shares. Royal Bank Of Canada increased their price objective on Rackspace Technology from $1.75 to $2.50 and gave the company a “sector perform” rating in a research note on Friday, February 27th. Weiss Ratings reissued a “sell (d-)” rating on shares of Rackspace Technology in a research report on Thursday, January 22nd. Four equities research analysts have rated the stock with a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, Rackspace Technology has a consensus rating of “Reduce” and an average target price of $1.70.

Rackspace Technology Price Performance

The company has a market cap of $509.10 million, a PE ratio of -2.20 and a beta of 1.80. The business has a 50 day moving average of $1.03 and a 200 day moving average of $1.20.

Insider Transactions at Rackspace Technology

In related news, CFO Mark A. Marino sold 20,183 shares of the business’s stock in a transaction dated Monday, March 2nd. The shares were sold at an average price of $1.81, for a total transaction of $36,531.23. Following the transaction, the chief financial officer owned 2,172,932 shares in the company, valued at $3,933,006.92. The trade was a 0.92% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Dharmendra Kumar Sinha sold 45,393 shares of Rackspace Technology stock in a transaction that occurred on Monday, March 2nd. The shares were sold at an average price of $1.81, for a total value of $82,161.33. Following the sale, the executive vice president directly owned 2,464,180 shares in the company, valued at approximately $4,460,165.80. The trade was a 1.81% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 300,259 shares of company stock worth $501,226 in the last ninety days. Insiders own 2.90% of the company’s stock.

Institutional Investors Weigh In On Rackspace Technology

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Quadrature Capital Ltd purchased a new position in Rackspace Technology during the second quarter valued at $26,000. Savant Capital LLC bought a new position in shares of Rackspace Technology in the 3rd quarter worth about $33,000. R Squared Ltd increased its stake in shares of Rackspace Technology by 74.3% in the 3rd quarter. R Squared Ltd now owns 25,127 shares of the company’s stock worth $35,000 after acquiring an additional 10,707 shares in the last quarter. Creative Planning lifted its position in Rackspace Technology by 114.2% during the 2nd quarter. Creative Planning now owns 25,715 shares of the company’s stock valued at $33,000 after acquiring an additional 13,708 shares during the period. Finally, Engineers Gate Manager LP boosted its stake 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 acquiring an additional 11,141 shares in the last quarter. 82.48% of the stock is owned by hedge funds and other institutional investors.

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.