Rackspace Technology (NASDAQ:RXT) Stock Price Down 11.7% Following Insider Selling

Rackspace Technology, Inc. (NASDAQ:RXT) shares fell 11.7% on Friday after an insider sold shares in the company. The company traded as low as $4.95 and last traded at $4.9350. 3,612,487 shares were traded during mid-day trading, a decline of 85% from the average session volume of 23,874,182 shares. The stock had previously closed at $5.59.

Specifically, CFO Mark A. Marino sold 48,099 shares of the company’s stock in a transaction on Thursday, June 4th. The stock was sold at an average price of $5.56, for a total transaction of $267,430.44. Following the completion of the sale, the chief financial officer directly owned 3,370,431 shares in the company, valued at $18,739,596.36. This represents a 1.41% decrease in their position. The transaction was disclosed in a filing with the SEC, 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.

Wall Street Analyst Weigh In

A number of research firms have recently commented on RXT. Weiss Ratings restated a “sell (d-)” rating on shares of Rackspace Technology in a report on Tuesday. Royal Bank Of Canada upped their price objective on Rackspace Technology from $1.75 to $2.50 and gave the stock a “sector perform” rating in a report on Friday, February 27th. Two research analysts have rated the stock with a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Rackspace Technology presently has an average rating of “Reduce” and an average target price of $1.95.

Rackspace Technology Trading Down 13.0%

The stock’s 50-day moving average is $2.90 and its 200-day moving average is $1.76. The stock has a market cap of $1.21 billion, a price-to-earnings ratio of -7.99 and a beta of 3.03.

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

Institutional Trading of Rackspace Technology

Large investors have recently bought and sold shares of the company. Savant Capital LLC acquired a new stake in shares of Rackspace Technology during the third quarter worth approximately $33,000. R Squared Ltd grew 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 worth $35,000 after buying an additional 10,707 shares in the last quarter. Creative Planning grew 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 worth $33,000 after buying an additional 13,708 shares in the last quarter. Abel Hall LLC acquired a new stake in shares of Rackspace Technology during the first quarter worth approximately $30,000. Finally, Engineers Gate Manager LP grew its position in shares of 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 buying an additional 11,141 shares in the last quarter. Institutional investors and hedge funds 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.