Rackspace Technology (NASDAQ:RXT) Shares Up 9.9% – Time to Buy?

Rackspace Technology, Inc. (NASDAQ:RXT) shares shot up 9.9% during mid-day trading on Thursday . The stock traded as high as $4.36 and last traded at $4.3940. 16,611,255 shares traded hands during trading, a decline of 32% from the average session volume of 24,436,400 shares. The stock had previously closed at $4.00.

Analyst Ratings Changes

Separately, Royal Bank Of Canada increased their price objective on shares of Rackspace Technology from $1.75 to $2.50 and gave the company a “sector perform” rating in a report on Friday, February 27th. Three research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Reduce” and a consensus price target of $1.95.

Rackspace Technology Price Performance

The company’s 50 day moving average price is $2.30 and its two-hundred day moving average price is $1.52. The stock has a market capitalization of $1.03 billion, a PE ratio of -6.80 and a beta of 2.23.

Rackspace Technology (NASDAQ:RXT) last posted its quarterly 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 firm 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. Analysts forecast that Rackspace Technology, Inc. will post -0.18 earnings per share for the current year.

Insider Activity

In other news, CFO Mark A. Marino sold 234,683 shares of the firm’s stock in a transaction dated Monday, February 23rd. The shares were sold at an average price of $1.63, for a total value of $382,533.29. Following the transaction, the chief financial officer directly owned 2,193,115 shares of the company’s stock, valued at approximately $3,574,777.45. This trade represents a 9.67% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, 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 transaction of $340,502.63. Following the completion of the transaction, the executive vice president directly owned 2,276,057 shares in the company, valued at approximately $4,119,663.17. This represents a 7.63% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 502,440 shares of company stock worth $867,173. Insiders own 2.90% of the company’s stock.

Hedge Funds Weigh In On Rackspace Technology

Several hedge funds and other institutional investors have recently modified their holdings of RXT. R Squared Ltd raised its stake in Rackspace Technology by 74.3% during the third quarter. R Squared Ltd now owns 25,127 shares of the company’s stock worth $35,000 after purchasing an additional 10,707 shares during the period. Engineers Gate Manager LP raised its stake in Rackspace Technology by 47.1% during the second quarter. Engineers Gate Manager LP now owns 34,777 shares of the company’s stock worth $45,000 after purchasing an additional 11,141 shares during the period. Alliancebernstein L.P. raised its stake in Rackspace Technology by 4.0% during the third quarter. Alliancebernstein L.P. now owns 290,750 shares of the company’s stock worth $410,000 after purchasing an additional 11,300 shares during the period. Creative Planning raised its stake in Rackspace Technology by 114.2% during the second 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 period. Finally, XTX Topco Ltd raised its stake in Rackspace Technology by 62.8% during the second quarter. XTX Topco Ltd now owns 57,682 shares of the company’s stock worth $74,000 after purchasing an additional 22,243 shares during the period. 82.48% of the stock is owned by hedge funds and other institutional investors.

Rackspace Technology Company Profile

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.