Rackspace Technology (NASDAQ:RXT) Stock Price Down 6% – What’s Next?

Rackspace Technology, Inc. (NASDAQ:RXT)’s stock price traded down 6% on Monday. The company traded as low as $3.68 and last traded at $3.6650. 648,711 shares traded hands during trading, a decline of 96% from the average daily volume of 18,481,486 shares. The stock had previously closed at $3.90.

Wall Street Analysts Forecast Growth

A number of research analysts recently commented on RXT shares. Royal Bank Of Canada raised their price target on Rackspace Technology from $2.50 to $4.00 and gave the stock a “sector perform” rating in a research report on Wednesday, June 17th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Rackspace Technology in a research note on Friday, August 28th. Finally, Wall Street Zen cut shares of Rackspace Technology from a “hold” rating to a “sell” rating in a research report on Saturday, August 15th. One research 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, the company currently has a consensus rating of “Reduce” and a consensus price target of $4.00.

Rackspace Technology Stock Down 5.0%

The business’s 50 day moving average is $3.79 and its 200-day moving average is $3.92. The firm has a market capitalization of $944.30 million, a P/E ratio of -5.70 and a beta of 3.10.

Rackspace Technology (NASDAQ:RXT) last announced its quarterly earnings data on Monday, August 10th. The company reported ($0.08) EPS for the quarter, beating 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. Research analysts forecast that Rackspace Technology, Inc. will post -0.28 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, Director Anthony Scott sold 48,780 shares of the business’s stock in a transaction on Friday, August 14th. The stock was sold at an average price of $4.25, for a total transaction of $207,315.00. Following the completion of the transaction, the director owned 180,215 shares of the company’s stock, valued at approximately $765,913.75. The trade was a 21.30% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Gajakarnan Kandiah sold 498,728 shares of the company’s stock in a transaction on Friday, September 4th. The stock was sold at an average price of $3.21, for a total value of $1,600,916.88. Following the sale, the chief executive officer owned 3,684,955 shares of the company’s stock, valued at approximately $11,828,705.55. This represents a 11.92% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 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. In the last quarter, insiders have sold 714,141 shares of company stock worth $2,299,799. 2.30% of the stock is currently owned by company insiders.

Institutional Trading of Rackspace Technology

Several large investors have recently bought and sold shares of RXT. ABS Direct Equity Fund LLC bought a new position in Rackspace Technology in the second quarter valued at about $1,306,000. Engineers Gate Manager LP acquired a new position in Rackspace Technology during the second quarter worth about $167,000. NewEdge Advisors LLC raised its stake in Rackspace Technology by 9,566.7% during the second quarter. NewEdge Advisors LLC now owns 29,000 shares of the company’s stock worth $189,000 after acquiring an additional 28,700 shares in the last quarter. Squarepoint Ops LLC bought a new position in shares of Rackspace Technology in the second quarter worth about $1,839,000. Finally, Corient Private Wealth LP bought a new position in shares of Rackspace Technology in the second quarter worth about $297,000. 82.48% of the stock is owned by institutional investors and hedge funds.

Rackspace Technology Company Profile

Rackspace Technology, Inc is a technology services company that helps organizations design, build, operate and modernize cloud-based IT environments. The company supports public, private and hybrid cloud infrastructures, working with major cloud platforms such as Amazon Web Services, Microsoft Azure and Google Cloud.

Its services include managed cloud operations, cloud migration and optimization, application modernization, data and artificial intelligence solutions, cybersecurity, professional services and dedicated hosting.