Rackspace Technology (NASDAQ:RXT) Stock Price Down 14.1% – What’s Next?

Rackspace Technology, Inc. (NASDAQ:RXT) shares fell 14.1% during trading on Friday. The stock traded as low as $2.57 and last traded at $2.5670. Approximately 2,344,051 shares traded hands during trading, a decline of 87% from the average daily volume of 17,552,451 shares. The stock had previously closed at $2.99.

Analyst Upgrades and Downgrades

A number of research analysts recently commented on the company. Wall Street Zen cut Rackspace Technology from a “hold” rating to a “sell” rating in a research report on Saturday, August 15th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Rackspace Technology in a research report on Friday, August 28th. One investment analyst has rated the stock with a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Reduce” and a consensus price target of $4.00.

Rackspace Technology Trading Down 12.7%

The firm has a 50 day moving average of $3.41 and a two-hundred day moving average of $3.19. The company has a market cap of $665.47 million, a PE ratio of -4.01 and a beta of 3.10.

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

Insider Buying and Selling

In related news, CFO Mark Marino sold 51,373 shares of Rackspace Technology stock in a transaction dated Wednesday, September 2nd. The stock was sold at an average price of $2.95, for a total value of $151,550.35. Following the completion of the transaction, the chief financial officer owned 2,865,853 shares in the company, valued at $8,454,266.35. The trade was a 1.76% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 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 Rackspace Technology stock in a transaction dated Friday, September 4th. The shares were sold at an average price of $3.21, for a total transaction of $1,600,916.88. Following the completion of the sale, the chief executive officer owned 3,684,955 shares in the company, valued at approximately $11,828,705.55. This trade represents a 11.92% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 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 hedge funds have recently added to or reduced their stakes in the company. ProShare Advisors LLC boosted its holdings in Rackspace Technology by 47.9% during the third quarter. ProShare Advisors LLC now owns 17,834 shares of the company’s stock worth $66,000 after buying an additional 5,779 shares in the last quarter. State of Wyoming acquired a new stake in Rackspace Technology in the third quarter valued at $39,000. Mills Wealth Advisors LLC purchased a new position in Rackspace Technology during the 3rd quarter valued at about $293,000. ABS Direct Equity Fund LLC acquired a new position in shares of Rackspace Technology in the second quarter worth $1,306,000. Finally, Engineers Gate Manager LP acquired a new stake in shares of Rackspace Technology during the 2nd quarter worth about $167,000. Institutional investors and hedge funds own 82.48% of the company’s stock.

Rackspace Technology Company Profile

Rackspace Technology, Inc is a technology services company that helps businesses design, build, operate and optimize information technology environments across public, private and hybrid clouds. Its offerings are intended to support organizations at various stages of cloud adoption, from migration and modernization to ongoing management and optimization.

The company provides managed cloud services for major cloud platforms, including Amazon Web Services, Microsoft Azure and Google Cloud.