Rackspace Technology (NASDAQ:RXT) Trading Up 11.1% – Should You Buy?

Rackspace Technology, Inc. (NASDAQ:RXT)’s stock price traded up 11.1% during mid-day trading on Thursday . The stock traded as high as $5.17 and last traded at $5.1450. 3,812,344 shares changed hands during trading, a decline of 84% from the average session volume of 24,219,025 shares. The stock had previously closed at $4.63.

Analysts Set New Price Targets

Separately, 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 report on Friday, February 27th. Three analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Reduce” and an average target price of $1.95.

Rackspace Technology Price Performance

The stock has a market capitalization of $1.31 billion, a P/E ratio of -8.62 and a beta of 2.23. The business’s 50 day simple moving average is $2.46 and its 200-day simple moving average is $1.59.

Rackspace Technology (NASDAQ:RXT) last announced its quarterly earnings data on Thursday, May 7th. The company reported ($0.06) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.03) by ($0.03). The business 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. Research analysts anticipate that Rackspace Technology, Inc. will post -0.18 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CFO Mark A. Marino sold 20,183 shares of the stock in a transaction on Monday, March 2nd. The stock was sold at an average price of $1.81, for a total value of $36,531.23. Following the transaction, the chief financial officer owned 2,172,932 shares of the company’s stock, valued at $3,933,006.92. This represents a 0.92% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, EVP Dharmendra Kumar Sinha sold 188,123 shares of the stock in a transaction on Wednesday, March 18th. The shares were sold at an average price of $1.81, for a total value 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 trade represents a 7.63% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders sold 267,757 shares of company stock worth $484,640. 2.90% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in RXT. Abel Hall LLC acquired a new position in shares of Rackspace Technology in the 1st quarter valued at $30,000. Savant Capital LLC acquired a new position in shares of Rackspace Technology in the 3rd quarter valued at $33,000. Creative Planning lifted its stake in shares of Rackspace Technology by 114.2% in the 2nd quarter. Creative Planning now owns 25,715 shares of the company’s stock valued at $33,000 after purchasing an additional 13,708 shares during the period. SG Americas Securities LLC acquired a new position in shares of Rackspace Technology in the 1st quarter valued at $34,000. Finally, Jump Financial LLC acquired a new position in shares of Rackspace Technology in the 4th quarter valued at $34,000. 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.