Rackspace Technology (NASDAQ:RXT) Trading Down 7.6% – Should You Sell?

Rackspace Technology, Inc. (NASDAQ:RXT)’s share price fell 7.6% during trading on Monday . The company traded as low as $6.51 and last traded at $6.6690. Approximately 4,029,750 shares were traded during mid-day trading, a decline of 83% from the average daily volume of 24,335,793 shares. The stock had previously closed at $7.22.

Analyst Ratings Changes

A number of research firms have recently weighed in on RXT. 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. Weiss Ratings reiterated a “sell (d-)” rating on shares of Rackspace Technology in a report on Tuesday, June 2nd. Two 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 has an average rating of “Reduce” and a consensus price target of $2.70.

Rackspace Technology Stock Down 8.1%

The business has a fifty day moving average of $3.96 and a 200 day moving average of $2.14. The company has a market cap of $1.65 billion, a P/E ratio of -10.92 and a beta of 3.01.

Rackspace Technology (NASDAQ:RXT) last released its quarterly earnings results on Thursday, May 7th. The company reported ($0.06) earnings per share 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 analyst estimates of $660.83 million. Rackspace Technology has set its FY 2026 guidance at -0.200–0.150 EPS. On average, sell-side analysts anticipate that Rackspace Technology, Inc. will post -0.18 EPS for the current fiscal year.

Insider Activity

In related news, CFO Mark A. Marino sold 48,099 shares of the stock in a transaction dated Thursday, June 4th. The shares were sold at an average price of $5.56, for a total value of $267,430.44. Following the completion of the transaction, the chief financial officer directly owned 3,370,431 shares of the company’s stock, valued at $18,739,596.36. This represents a 1.41% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, 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. 2.30% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in RXT. Abel Hall LLC bought a new position in shares of Rackspace Technology in the 1st quarter worth approximately $30,000. Creative Planning boosted 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 valued at $33,000 after purchasing an additional 13,708 shares in the last quarter. SG Americas Securities LLC purchased a new stake in Rackspace Technology in the first quarter worth $34,000. Jump Financial LLC purchased a new stake in Rackspace Technology in the fourth quarter worth $34,000. Finally, State of Wyoming bought a new position in Rackspace Technology in the first quarter worth $35,000. Hedge funds and other 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.