Rackspace Technology (NASDAQ:RXT) Trading 24.2% Higher – What’s Next?

Rackspace Technology, Inc. (NASDAQ:RXT)’s stock price traded up 24.2% on Wednesday . The company traded as high as $5.77 and last traded at $5.7870. 4,283,512 shares traded hands during trading, a decline of 82% from the average session volume of 23,519,564 shares. The stock had previously closed at $4.66.

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on the company. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Rackspace Technology in a research report on Tuesday, June 2nd. Royal Bank Of Canada upped their price objective on Rackspace Technology from $1.75 to $2.50 and gave the stock a “sector perform” rating in a research note on Friday, February 27th. Two research analysts have rated the stock with a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Reduce” and a consensus price target of $1.95.

Rackspace Technology Trading Up 6.1%

The stock has a market cap of $1.40 billion, a P/E ratio of -9.18 and a beta of 3.03. The firm has a 50-day simple moving average of $3.29 and a two-hundred day simple moving average of $1.90.

Rackspace Technology (NASDAQ:RXT) last posted its quarterly earnings data 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 business had revenue of $678.10 million during the quarter, compared to analysts’ expectations of $660.83 million. Rackspace Technology has set its FY 2026 guidance at -0.200–0.150 EPS. Sell-side analysts predict that Rackspace Technology, Inc. will post -0.18 earnings per share for the current year.

Insider Buying and Selling at Rackspace Technology

In related news, EVP Dharmendra Kumar Sinha sold 188,123 shares of the firm’s stock in a transaction dated Wednesday, March 18th. The stock was sold at an average price of $1.81, for a total value of $340,502.63. Following the sale, the executive vice president directly owned 2,276,057 shares of the company’s stock, valued at $4,119,663.17. This trade represents a 7.63% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, CFO Mark A. Marino sold 48,099 shares of the firm’s stock in a transaction dated Thursday, June 4th. The shares were sold at an average price of $5.56, for a total value of $267,430.44. Following the completion of the sale, the chief financial officer directly owned 3,370,431 shares in the company, valued at $18,739,596.36. This trade represents a 1.41% decrease in their ownership of the stock. 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 three months, insiders have sold 250,280 shares of company stock worth $633,378. 2.90% of the stock is currently owned by insiders.

Institutional Trading of Rackspace Technology

Several large investors have recently bought and sold shares of the business. AQR Capital Management LLC boosted its stake in shares of Rackspace Technology by 228.6% during the first quarter. AQR Capital Management LLC now owns 264,565 shares of the company’s stock valued at $447,000 after purchasing an additional 184,058 shares in the last quarter. Dynamic Technology Lab Private Ltd acquired a new stake in shares of Rackspace Technology during the first quarter valued at about $113,000. Geode Capital Management LLC boosted its stake in shares of Rackspace Technology by 17.9% during the second quarter. Geode Capital Management LLC now owns 2,064,549 shares of the company’s stock valued at $2,643,000 after purchasing an additional 313,636 shares in the last quarter. Creative Planning boosted its stake in shares of Rackspace Technology by 114.2% during the second quarter. Creative Planning now owns 25,715 shares of the company’s stock valued at $33,000 after purchasing an additional 13,708 shares in the last quarter. Finally, JPMorgan Chase & Co. boosted its stake in shares of Rackspace Technology by 25.5% during the second quarter. JPMorgan Chase & Co. now owns 1,437,879 shares of the company’s stock valued at $1,840,000 after purchasing an additional 292,249 shares in the last quarter. 82.48% of the stock is 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.