Rackspace Technology (NASDAQ:RXT) Stock Jumps 5.7% – Still a Buy?

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

Analysts Set New Price Targets

Several equities analysts have recently weighed in on the company. Weiss Ratings restated a “sell (d-)” rating on shares of Rackspace Technology in a research report on Friday, August 28th. Wall Street Zen cut Rackspace Technology from a “hold” rating to a “sell” rating in a research report on Saturday, August 15th. Finally, Royal Bank Of Canada increased their price objective on Rackspace Technology from $2.50 to $4.00 and gave the company a “sector perform” rating in a research note on Wednesday, June 17th. One investment analyst has rated the stock with a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, Rackspace Technology currently has a consensus rating of “Reduce” and an average price target of $4.00.

Rackspace Technology Stock Performance

The business has a 50 day simple moving average of $3.81 and a 200-day simple moving average of $3.79. The firm has a market capitalization of $1.01 billion, a price-to-earnings ratio of -6.10 and a beta of 3.05.

Rackspace Technology (NASDAQ:RXT) last released its quarterly earnings data on Monday, August 10th. The company reported ($0.08) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.09) by $0.01. The firm had revenue of $670.10 million for the quarter, compared to analyst estimates of $646.00 million. Equities analysts predict that Rackspace Technology, Inc. will post -0.28 earnings per share for the current fiscal year.

Insider Activity

In other news, CFO Mark Marino sold 51,373 shares of the firm’s stock in a transaction that occurred on 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 in the company, valued at $8,454,266.35. This trade represents a 1.76% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 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 Rackspace Technology stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $4.25, for a total transaction of $207,315.00. Following the sale, the director directly owned 180,215 shares in the company, valued at approximately $765,913.75. The trade was a 21.30% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 714,141 shares of company stock worth $2,299,799 over the last quarter. 2.30% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Rackspace Technology

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

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.