Rackspace Technology (NASDAQ:RXT) Shares Up 8.8% – Still a Buy?

Rackspace Technology, Inc. (NASDAQ:RXT)’s share price was up 8.8% on Monday . The stock traded as high as $4.55 and last traded at $4.4950. Approximately 3,031,253 shares were traded during trading, a decline of 86% from the average daily volume of 22,367,447 shares. The stock had previously closed at $4.13.

Wall Street Analyst Weigh In

RXT has been the topic of several recent analyst reports. Weiss Ratings reiterated a “sell (d-)” rating on shares of Rackspace Technology in a research note on Tuesday, June 2nd. Royal Bank Of Canada upped their price objective on Rackspace Technology from $2.50 to $4.00 and gave the company a “sector perform” rating in a research note on Wednesday, June 17th. Two investment analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, Rackspace Technology currently has an average rating of “Reduce” and a consensus target price of $2.70.

Rackspace Technology Price Performance

The stock’s fifty day simple moving average is $5.33 and its two-hundred day simple moving average is $3.02. The company has a market capitalization of $1.20 billion, a price-to-earnings ratio of -7.83 and a beta of 2.99.

Rackspace Technology (NASDAQ:RXT) last posted its quarterly earnings results on Thursday, May 7th. The company reported ($0.06) EPS 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 analyst estimates of $660.83 million. Rackspace Technology has set its FY 2026 guidance at -0.200–0.150 EPS.

Insider Transactions at Rackspace Technology

In related news, CFO Mark A. Marino sold 48,099 shares of the company’s stock in a transaction on Thursday, June 4th. The stock was sold at an average price of $5.56, for a total transaction of $267,430.44. Following the completion of the transaction, the chief financial officer directly owned 3,370,431 shares in the company, valued at $18,739,596.36. This represents a 1.41% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 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 owned by corporate insiders.

Hedge Funds Weigh In On Rackspace Technology

Several hedge funds and other institutional investors have recently modified their holdings of RXT. Strategic Investment Solutions Inc. IL acquired a new stake in shares of Rackspace Technology in the second quarter valued at approximately $67,000. Wealthcare Advisory Partners LLC bought a new position in Rackspace Technology in the 2nd quarter worth approximately $72,000. Engineers Gate Manager LP grew its holdings in Rackspace Technology by 47.1% in the 2nd quarter. Engineers Gate Manager LP now owns 34,777 shares of the company’s stock worth $45,000 after buying an additional 11,141 shares in the last quarter. Alliancebernstein L.P. increased its position in 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 acquiring an additional 11,300 shares during the period. Finally, Creative Planning increased its position in 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 acquiring an additional 13,708 shares during the period. Institutional investors and hedge funds own 82.48% of the company’s stock.

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.