Rackspace Technology, Inc. (NASDAQ:RXT) Receives Consensus Recommendation of “Hold” from Brokerages

Shares of Rackspace Technology, Inc. (NASDAQ:RXT) have received a consensus rating of “Hold” from the six research firms that are presently covering the company, MarketBeat reports. One equities research analyst has rated the stock with a sell recommendation, four have given a hold recommendation and one has given a buy recommendation to the company. The average 1 year target price among brokerages that have updated their coverage on the stock in the last year is $2.47.

Several equities analysts have recently commented on RXT shares. UBS Group upped their price objective on shares of Rackspace Technology from $2.10 to $2.30 and gave the company a “neutral” rating in a research note on Friday, August 16th. Barclays upped their price target on Rackspace Technology from $1.00 to $2.00 and gave the company an “underweight” rating in a research report on Monday, November 18th.

Insider Activity at Rackspace Technology

In other Rackspace Technology news, CEO Amar Maletira sold 82,552 shares of the stock in a transaction dated Wednesday, October 2nd. The stock was sold at an average price of $2.37, for a total value of $195,648.24. Following the transaction, the chief executive officer now owns 4,983,984 shares of the company’s stock, valued at approximately $11,812,042.08. This represents a 1.63 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 2.00% of the stock is owned by insiders.

Institutional Investors Weigh In On Rackspace Technology

Several hedge funds and other institutional investors have recently added to or reduced their stakes in RXT. The Manufacturers Life Insurance Company boosted its holdings in Rackspace Technology by 44.7% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 30,019 shares of the company’s stock worth $89,000 after buying an additional 9,275 shares during the period. ClariVest Asset Management LLC grew its position in shares of Rackspace Technology by 2.8% during the second quarter. ClariVest Asset Management LLC now owns 379,721 shares of the company’s stock worth $1,132,000 after purchasing an additional 10,281 shares in the last quarter. Creative Planning bought a new stake in Rackspace Technology during the 3rd quarter valued at approximately $29,000. Allspring Global Investments Holdings LLC bought a new position in Rackspace Technology in the 2nd quarter worth approximately $40,000. Finally, SG Americas Securities LLC boosted its stake in Rackspace Technology by 64.7% in the 3rd quarter. SG Americas Securities LLC now owns 34,467 shares of the company’s stock worth $84,000 after purchasing an additional 13,543 shares during the period. 82.48% of the stock is owned by hedge funds and other institutional investors.

Rackspace Technology Trading Up 1.5 %

Shares of NASDAQ RXT opened at $2.68 on Friday. The stock’s 50-day moving average is $2.57 and its 200 day moving average is $2.44. The stock has a market cap of $609.89 million, a price-to-earnings ratio of -0.77 and a beta of 1.97. Rackspace Technology has a 1-year low of $1.22 and a 1-year high of $3.41.

Rackspace Technology (NASDAQ:RXT) last posted its quarterly earnings results on Tuesday, November 12th. The company reported ($0.04) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.07) by $0.03. The business had revenue of $675.80 million for the quarter, compared to analysts’ expectations of $675.14 million. During the same quarter in the previous year, the company earned ($0.04) earnings per share. The business’s quarterly revenue was down 7.7% on a year-over-year basis. On average, analysts forecast that Rackspace Technology will post -0.27 EPS for the current fiscal year.

About Rackspace Technology

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.