Rackspace Technology (NASDAQ:RXT) Stock Price Up 6.8% – Still a Buy?

Shares of Rackspace Technology, Inc. (NASDAQ:RXT) shot up 6.8% during trading on Wednesday . The stock traded as high as $2.82 and last traded at $2.81. 276,878 shares were traded during trading, a decline of 76% from the average session volume of 1,141,568 shares. The stock had previously closed at $2.63.

Analysts Set New Price Targets

Separately, UBS Group raised their price target on shares of Rackspace Technology from $2.10 to $2.30 and gave the company a “neutral” rating in a report on Friday, August 16th. Two equities research analysts have rated the stock with a sell rating, four have assigned a hold rating and one has issued a buy rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $2.15.

Rackspace Technology Price Performance

The firm’s 50 day simple moving average is $2.36 and its 200 day simple moving average is $2.21. The company has a market capitalization of $610.28 million, a PE ratio of -0.75 and a beta of 1.98.

Rackspace Technology (NASDAQ:RXT) last issued its earnings results on Thursday, August 8th. The company reported ($0.08) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.11) by $0.03. The company had revenue of $684.90 million for the quarter, compared to analysts’ expectations of $669.10 million. As a group, sell-side analysts predict that Rackspace Technology, Inc. will post -0.32 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CEO Amar Maletira sold 52,206 shares of the company’s stock in a transaction that occurred on Wednesday, August 21st. The stock was sold at an average price of $2.35, for a total value of $122,684.10. Following the sale, the chief executive officer now owns 5,347,434 shares in the company, valued at $12,566,469.90. This represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. In related news, EVP Dharmendra Kumar Sinha sold 149,249 shares of the stock in a transaction on Thursday, July 25th. The stock was sold at an average price of $2.36, for a total value of $352,227.64. Following the completion of the transaction, the executive vice president now directly owns 2,466,593 shares of the company’s stock, valued at approximately $5,821,159.48. This represents a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Amar Maletira sold 52,206 shares of the firm’s stock in a transaction on Wednesday, August 21st. The stock was sold at an average price of $2.35, for a total value of $122,684.10. Following the completion of the sale, the chief executive officer now directly owns 5,347,434 shares of the company’s stock, valued at $12,566,469.90. This trade represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 376,570 shares of company stock worth $894,330. 2.00% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Rackspace Technology

A number of hedge funds have recently modified their holdings of the business. The Manufacturers Life Insurance Company boosted its stake in shares of Rackspace Technology by 44.7% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 30,019 shares of the company’s stock valued at $89,000 after buying an additional 9,275 shares during the period. ClariVest Asset Management LLC raised its position in shares of Rackspace Technology by 2.8% during the 2nd quarter. ClariVest Asset Management LLC now owns 379,721 shares of the company’s stock worth $1,132,000 after acquiring an additional 10,281 shares in the last quarter. Allspring Global Investments Holdings LLC acquired a new position in Rackspace Technology during the second quarter worth approximately $40,000. SG Americas Securities LLC increased its position in Rackspace Technology by 64.7% during the third quarter. SG Americas Securities LLC now owns 34,467 shares of the company’s stock worth $84,000 after buying an additional 13,543 shares during the period. Finally, Mitsubishi UFJ Trust & Banking Corp increased its position in Rackspace Technology by 98.2% during the first quarter. Mitsubishi UFJ Trust & Banking Corp now owns 33,263 shares of the company’s stock worth $51,000 after buying an additional 16,484 shares during the period. 82.48% of the stock is currently owned by hedge funds and other institutional investors.

Rackspace Technology Company Profile

Rackspace Technology, Inc operates as a multi cloud technology services company in the Americas, Europe, the Middle East, Africa, and The Asia-Pacific region. It operates through three segments: Multicloud Services, Apps & Cross Platform, and OpenStack Public Cloud. The company provides public and private cloud managed services, which allow customers to determine, manage, and optimize the right infrastructure, platforms, and services; professional services related to designing and building multi cloud solutions and cloud-native applications; and managed hosting and colocation services.