Rackspace Technology (NASDAQ:RXT) Trading Down 14.3% – Here’s Why

Rackspace Technology, Inc. (NASDAQ:RXT) traded down 14.3% during mid-day trading on Monday . The stock traded as low as $4.95 and last traded at $4.9890. 8,052,953 shares were traded during trading, a decline of 67% from the average session volume of 24,196,463 shares. The stock had previously closed at $5.82.

Wall Street Analyst Weigh In

Several research analysts recently weighed in on RXT shares. Weiss Ratings reissued a “sell (d-)” rating on shares of Rackspace Technology in a research report on Thursday, January 22nd. Royal Bank Of Canada boosted their price objective on shares of Rackspace Technology from $1.75 to $2.50 and gave the stock a “sector perform” rating in a research note on Friday, February 27th. Three research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of “Reduce” and an average target price of $1.95.

Rackspace Technology Stock Down 2.1%

The stock has a market capitalization of $1.17 billion, a P/E ratio of -7.70 and a beta of 2.23. The business has a 50-day simple moving average of $2.16 and a two-hundred day simple moving average of $1.47.

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 for 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, sell-side analysts forecast that Rackspace Technology, Inc. will post -0.18 earnings per share for the current year.

Insiders Place Their Bets

In related news, CFO Mark A. Marino sold 14,058 shares of Rackspace Technology stock in a transaction dated Wednesday, March 18th. The stock was sold at an average price of $1.81, for a total value of $25,444.98. Following the completion of the transaction, the chief financial officer directly owned 2,158,874 shares of the company’s stock, valued at $3,907,561.94. The trade was a 0.65% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, EVP Dharmendra Kumar Sinha sold 188,123 shares of the business’s stock in a transaction dated Wednesday, March 18th. The stock was sold at an average price of $1.81, for a total transaction of $340,502.63. Following the completion of the transaction, the executive vice president directly owned 2,276,057 shares of the company’s stock, valued at approximately $4,119,663.17. This represents a 7.63% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 502,440 shares of company stock valued at $867,173. 2.90% of the stock is currently owned by corporate insiders.

Institutional Trading of Rackspace Technology

Institutional investors and hedge funds have recently made changes to their positions in the business. Janus Henderson Group PLC raised its position in shares of Rackspace Technology by 179.7% in the 1st quarter. Janus Henderson Group PLC now owns 2,937,670 shares of the company’s stock valued at $2,878,000 after acquiring an additional 1,887,317 shares during the period. AustralianSuper Pty Ltd bought a new position in shares of Rackspace Technology in the 3rd quarter valued at about $2,276,000. Two Sigma Investments LP increased its position in shares of Rackspace Technology by 368.4% during the 3rd quarter. Two Sigma Investments LP now owns 673,689 shares of the company’s stock worth $950,000 after purchasing an additional 529,862 shares during the last quarter. Vanguard Group Inc. increased its holdings in Rackspace Technology by 6.1% during the third quarter. Vanguard Group Inc. now owns 6,288,882 shares of the company’s stock worth $8,867,000 after buying an additional 359,087 shares during the last quarter. Finally, Geode Capital Management LLC increased its position in Rackspace Technology by 17.9% during the second quarter. Geode Capital Management LLC now owns 2,064,549 shares of the company’s stock worth $2,643,000 after buying an additional 313,636 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.