Rackspace Technology (NASDAQ:RXT) Stock Price Up 6.7% – Should You Buy?

Rackspace Technology, Inc. (NASDAQ:RXT)’s share price shot up 6.7% during trading on Monday . The company traded as high as $3.47 and last traded at $3.4350. 3,221,432 shares traded hands during mid-day trading, a decline of 84% from the average daily volume of 19,902,154 shares. The stock had previously closed at $3.22.

Analyst Ratings Changes

Several research firms recently weighed in on RXT. Weiss Ratings restated a “sell (d-)” rating on shares of Rackspace Technology in a report on Friday, August 28th. Royal Bank Of Canada lifted their price objective on shares of Rackspace Technology from $2.50 to $4.00 and gave the stock a “sector perform” rating in a research note on Wednesday, June 17th. 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 equities research analyst has rated the stock with a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Rackspace Technology has a consensus rating of “Reduce” and a consensus price target of $4.00.

Rackspace Technology Trading Up 11.7%

The company has a 50-day simple moving average of $4.08 and a 200 day simple moving average of $3.65. The company has a market cap of $916.51 million, a P/E ratio of -5.63 and a beta of 3.05.

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

Insider Activity at Rackspace Technology

In other Rackspace Technology news, CFO Mark A. Marino sold 51,373 shares of the company’s stock in a transaction dated Wednesday, September 2nd. The shares were sold at an average price of $2.95, for a total value of $151,550.35. Following the transaction, the chief financial officer directly owned 2,865,853 shares in the company, valued at $8,454,266.35. This represents a 1.76% decrease in their position. The sale was disclosed in a legal 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, CEO Gajakarnan Kandiah sold 498,728 shares of the firm’s stock in a transaction that occurred on Friday, September 4th. The stock was sold at an average price of $3.21, for a total transaction of $1,600,916.88. Following the transaction, the chief executive officer directly owned 3,684,955 shares in the company, valued at approximately $11,828,705.55. This trade 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. Over the last 90 days, insiders have sold 714,141 shares of company stock worth $2,299,799. Corporate insiders own 2.30% of the company’s stock.

Institutional Investors Weigh In On Rackspace Technology

A number of institutional investors and hedge funds have recently bought and sold shares of the company. California State Teachers Retirement System purchased a new stake in shares of Rackspace Technology in the 2nd quarter worth $51,000. Legal & General Group Plc bought a new position in Rackspace Technology during the 2nd quarter worth about $58,000. Quantbot Technologies LP purchased a new position in Rackspace Technology during the second quarter valued at approximately $63,000. Allworth Financial LP purchased a new position in shares of Rackspace Technology in the 2nd quarter valued at $66,000. Finally, Strategic Investment Solutions Inc. IL bought a new position in shares of Rackspace Technology in the 2nd quarter worth $67,000. 82.48% of the stock is owned by institutional investors.

Rackspace Technology Company Profile

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.