Rackspace Technology (NASDAQ:RXT) Trading 6.7% Higher – What’s Next?

Rackspace Technology, Inc. (NASDAQ:RXT)’s stock price was up 6.7% during trading on Tuesday . The stock traded as high as $4.89 and last traded at $4.8230. 3,139,532 shares changed hands during mid-day trading, a decline of 87% from the average daily volume of 23,796,438 shares. The stock had previously closed at $4.52.

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on RXT shares. Royal Bank Of Canada increased their target price on shares of Rackspace Technology from $2.50 to $4.00 and gave the stock a “sector perform” rating in a research report on Wednesday, June 17th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Rackspace Technology in a research note on Tuesday, June 2nd. Two research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Reduce” and an average target price of $2.70.

Rackspace Technology Stock Up 7.6%

The business’s fifty day moving average is $5.48 and its two-hundred day moving average is $2.71. The firm has a market cap of $1.24 billion, a price-to-earnings ratio of -7.98 and a beta of 2.99.

Rackspace Technology (NASDAQ:RXT) last announced its quarterly earnings data on Thursday, May 7th. The company reported ($0.06) EPS for the quarter, missing analysts’ consensus estimates 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.

Insider Buying and Selling

In related news, CFO Mark A. Marino sold 48,099 shares of Rackspace Technology stock in a transaction dated Thursday, June 4th. The stock was 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. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through 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. 2.30% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Rackspace Technology

Several institutional investors have recently modified their holdings of the business. Strategic Investment Solutions Inc. IL acquired a new position in Rackspace Technology in the second quarter valued at approximately $67,000. Wealthcare Advisory Partners LLC acquired a new stake in Rackspace Technology during the 2nd quarter worth $72,000. Engineers Gate Manager LP raised its position in shares of Rackspace Technology by 47.1% during the 2nd quarter. Engineers Gate Manager LP now owns 34,777 shares of the company’s stock valued at $45,000 after acquiring an additional 11,141 shares during the last quarter. Alliancebernstein L.P. lifted its stake in shares of Rackspace Technology by 4.0% in the 3rd quarter. Alliancebernstein L.P. now owns 290,750 shares of the company’s stock valued at $410,000 after purchasing an additional 11,300 shares during the period. Finally, Creative Planning boosted its position in shares of Rackspace Technology by 114.2% in the 2nd quarter. Creative Planning now owns 25,715 shares of the company’s stock worth $33,000 after purchasing an additional 13,708 shares during the last quarter. Institutional investors and hedge funds own 82.48% of the company’s stock.

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.