Rackspace Technology (NASDAQ:RXT) Stock Price Down 11.7% Following Insider Selling

Rackspace Technology, Inc. (NASDAQ:RXT) dropped 11.7% on Friday following insider selling activity. The company traded as low as $4.95 and last traded at $4.9350. Approximately 3,612,487 shares changed hands during mid-day trading, a decline of 85% from the average daily volume of 23,874,182 shares. The stock had previously closed at $5.59.

Specifically, CFO Mark A. Marino sold 48,099 shares of Rackspace Technology stock in a transaction on Thursday, June 4th. The stock was sold at an average price of $5.56, for a total transaction of $267,430.44. Following the completion of the transaction, the chief financial officer owned 3,370,431 shares of the company’s stock, valued at $18,739,596.36. The trade was a 1.41% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through 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.

Analyst Ratings Changes

Several research firms have recently commented on RXT. Weiss Ratings reiterated a “sell (d-)” rating on shares of Rackspace Technology in a research report on Tuesday. Royal Bank Of Canada lifted their price objective on Rackspace Technology from $1.75 to $2.50 and gave the stock a “sector perform” rating in a research report on Friday, February 27th. Two investment analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Reduce” and an average target price of $1.95.

Rackspace Technology Trading Down 13.0%

The firm’s 50 day moving average is $2.90 and its two-hundred day moving average is $1.76. The stock has a market cap of $1.21 billion, a price-to-earnings ratio of -7.99 and a beta of 3.03.

Rackspace Technology (NASDAQ:RXT) last announced its 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 analysts’ expectations of $660.83 million. Rackspace Technology has set its FY 2026 guidance at -0.200–0.150 EPS. As a group, equities analysts expect that Rackspace Technology, Inc. will post -0.18 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the business. Essential Partners LLC raised its holdings in Rackspace Technology by 25,906.1% in the 1st quarter. Essential Partners LLC now owns 72,037 shares of the company’s stock valued at $71,000 after acquiring an additional 71,760 shares during the last quarter. Arete Wealth Advisors LLC acquired a new position in shares of Rackspace Technology during the 1st quarter valued at about $219,000. Janus Henderson Group PLC increased its stake in shares of Rackspace Technology by 179.7% during the 1st quarter. Janus Henderson Group PLC now owns 2,937,670 shares of the company’s stock valued at $2,878,000 after acquiring an additional 1,887,317 shares during the last quarter. Renaissance Technologies LLC increased its stake in shares of Rackspace Technology by 14.0% during the 1st quarter. Renaissance Technologies LLC now owns 2,041,600 shares of the company’s stock valued at $2,000,000 after acquiring an additional 250,700 shares during the last quarter. Finally, State of Wyoming acquired a new position in shares of Rackspace Technology during the 1st quarter valued at about $35,000. 82.48% of the stock is currently owned by institutional investors and hedge funds.

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.