Rackspace Technology (NASDAQ:RXT) Trading Down 6.2% – Here’s Why

Shares of Rackspace Technology, Inc. (NASDAQ:RXT) fell 6.2% on Wednesday . The company traded as low as $4.61 and last traded at $4.6630. 11,556,970 shares were traded during mid-day trading, a decline of 53% from the average session volume of 24,341,459 shares. The stock had previously closed at $4.97.

Analysts Set New Price Targets

Separately, Royal Bank Of Canada increased their target price on 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 equities research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Reduce” and an average price target of $1.95.

Rackspace Technology Trading Down 7.0%

The business has a 50-day moving average price of $2.41 and a 200-day moving average price of $1.57. The firm has a market cap of $1.15 billion, a P/E ratio of -7.60 and a beta of 2.23.

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

Insider Transactions at Rackspace Technology

In related news, CFO Mark A. Marino sold 14,058 shares of the firm’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 $25,444.98. Following the sale, the chief financial officer owned 2,158,874 shares of the company’s stock, valued at $3,907,561.94. This trade represents a 0.65% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP Dharmendra Kumar Sinha sold 188,123 shares of the firm’s stock in a transaction dated Wednesday, March 18th. The shares were sold at an average price of $1.81, for a total value of $340,502.63. Following the sale, the executive vice president directly owned 2,276,057 shares in the company, valued at approximately $4,119,663.17. The trade was a 7.63% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 267,757 shares of company stock worth $484,640. 2.90% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Rackspace Technology

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. raised its stake in Rackspace Technology by 6.1% in the third quarter. Vanguard Group Inc. now owns 6,288,882 shares of the company’s stock valued at $8,867,000 after buying an additional 359,087 shares during the last quarter. Janus Henderson Group PLC raised its stake in Rackspace Technology by 179.7% in the first quarter. Janus Henderson Group PLC now owns 2,937,670 shares of the company’s stock valued at $2,878,000 after buying an additional 1,887,317 shares during the last quarter. Geode Capital Management LLC raised its stake in Rackspace Technology by 4.2% in the fourth quarter. Geode Capital Management LLC now owns 2,408,000 shares of the company’s stock valued at $2,338,000 after buying an additional 96,760 shares during the last quarter. Renaissance Technologies LLC raised its stake in Rackspace Technology by 14.0% in the first quarter. Renaissance Technologies LLC now owns 2,041,600 shares of the company’s stock valued at $2,000,000 after buying an additional 250,700 shares during the last quarter. Finally, AustralianSuper Pty Ltd purchased a new stake in Rackspace Technology in the third quarter valued at about $2,276,000. 82.48% of the stock is currently owned by hedge funds and other institutional investors.

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.