Rackspace Technology (NASDAQ:RXT) Stock Jumps 13.7% on Better-Than-Expected Earnings

Shares of Rackspace Technology, Inc. (NASDAQ:RXT) were up 13.7% during mid-day trading on Monday after the company announced better than expected quarterly earnings. The stock traded as high as $2.81 and last traded at $2.8770. 2,596,826 shares changed hands during mid-day trading, a decline of 85% from the average daily volume of 17,205,436 shares. The stock had previously closed at $2.53.

The company reported ($0.06) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.08) by $0.02. The firm had revenue of $609.10 million for the quarter, compared to the consensus estimate of $573.96 million.

Wall Street Analysts Forecast Growth

A number of research firms have issued reports on RXT. Wall Street Zen lowered Rackspace Technology from a “hold” rating to a “sell” rating in a report on Saturday, August 15th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Rackspace Technology in a report on Friday, August 28th. One equities research analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Reduce” and a consensus price target of $4.00.

Insider Activity at Rackspace Technology

In other Rackspace Technology news, EVP Dharmendra Sinha sold 107,002 shares of the firm’s stock in a transaction on Wednesday, September 2nd. The shares were sold at an average price of $2.95, for a total value of $315,655.90. Following the sale, the executive vice president directly owned 3,263,429 shares in the company, valued at $9,627,115.55. This trade represents a 3.17% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at 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. Also, Director Anthony Scott sold 48,780 shares of the business’s stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $4.25, for a total transaction of $207,315.00. Following the transaction, the director owned 180,215 shares in the company, valued at approximately $765,913.75. The trade was a 21.30% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 714,141 shares of company stock valued at $2,299,799. Company insiders own 2.30% of the company’s stock.

Hedge Funds Weigh In On Rackspace Technology

Several institutional investors and hedge funds have recently added to or reduced their stakes in RXT. Voya Investment Management LLC raised its holdings in Rackspace Technology by 27.9% in the 3rd quarter. Voya Investment Management LLC now owns 22,175 shares of the company’s stock valued at $83,000 after acquiring an additional 4,843 shares in the last quarter. Russell Investments Group Ltd. grew its holdings in shares of Rackspace Technology by 8.7% during the 3rd quarter. Russell Investments Group Ltd. now owns 61,491 shares of the company’s stock worth $229,000 after purchasing an additional 4,904 shares in the last quarter. ProShare Advisors LLC grew its holdings in shares of Rackspace Technology by 47.9% during the 3rd quarter. ProShare Advisors LLC now owns 17,834 shares of the company’s stock worth $66,000 after purchasing an additional 5,779 shares in the last quarter. Legal & General Group Plc bought a new stake in shares of Rackspace Technology during the second quarter valued at approximately $58,000. Finally, Quantbot Technologies LP bought a new stake in shares of Rackspace Technology during the second quarter valued at approximately $63,000. 82.48% of the stock is currently owned by institutional investors.

Rackspace Technology Price Performance

The business has a 50 day moving average of $3.30 and a 200 day moving average of $3.26. The firm has a market capitalization of $727.65 million, a price-to-earnings ratio of -4.91 and a beta of 3.29.

Rackspace Technology Company Profile

Rackspace Technology, Inc. (NASDAQ: RXT) provides multicloud technology services to businesses and public-sector organizations. Its offerings include cloud strategy and migration, infrastructure management, application modernization, data services, and cybersecurity. The company helps customers operate workloads across public cloud platforms, including Amazon Web Services, Microsoft Azure, and Google Cloud, as well as private and hybrid cloud environments. Its services include consulting and ongoing support tailored to customers’ technology needs.