Rackspace Technology (NASDAQ:RXT) Price Target Cut to $1.75 by Analysts at Royal Bank Of Canada

Rackspace Technology (NASDAQ:RXT) had its price target trimmed by Royal Bank Of Canada from $2.00 to $1.75 in a report issued on Monday morning,Benzinga reports. The brokerage currently has a sector perform rating on the stock.

Several other analysts have also recently commented on RXT. Wall Street Zen raised shares of Rackspace Technology from a “sell” rating to a “hold” rating in a research note on Saturday, September 20th. BMO Capital Markets dropped their target price on shares of Rackspace Technology from $1.75 to $1.40 and set a “market perform” rating for the company in a research report on Tuesday, August 12th. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Rackspace Technology in a research report on Wednesday, October 8th. Four research analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, Rackspace Technology has a consensus rating of “Reduce” and an average price target of $1.51.

Rackspace Technology Price Performance

Shares of Rackspace Technology stock opened at $1.21 on Monday. The business has a 50 day moving average price of $1.46 and a 200 day moving average price of $1.34. The company has a market capitalization of $288.43 million, a P/E ratio of -1.12 and a beta of 2.07. Rackspace Technology has a 1 year low of $1.00 and a 1 year high of $3.41.

Rackspace Technology (NASDAQ:RXT) last released its quarterly earnings results on Thursday, November 6th. The company reported ($0.05) earnings per share for the quarter, hitting the consensus estimate of ($0.05). The company had revenue of $671.20 million for the quarter, compared to analysts’ expectations of $666.83 million. The business’s quarterly revenue was down .7% on a year-over-year basis. During the same period in the previous year, the business posted ($0.04) EPS. Rackspace Technology has set its Q4 2025 guidance at -0.050–0.030 EPS.

Insiders Place Their Bets

In other Rackspace Technology news, Director Anthony Scott sold 40,000 shares of the business’s stock in a transaction on Monday, September 8th. The shares were sold at an average price of $1.43, for a total value of $57,200.00. Following the transaction, the director owned 191,045 shares in the company, valued at $273,194.35. The trade was a 17.31% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO Amar Maletira sold 1,780,619 shares of the firm’s stock in a transaction dated Monday, September 15th. The shares were sold at an average price of $1.35, for a total value of $2,403,835.65. Following the sale, the chief executive officer owned 4,608,619 shares of the company’s stock, valued at $6,221,635.65. This represents a 27.87% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders own 2.90% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of RXT. Vanguard Group Inc. raised its position in shares of Rackspace Technology by 6.1% in the 3rd quarter. Vanguard Group Inc. now owns 6,288,882 shares of the company’s stock valued at $8,867,000 after purchasing an additional 359,087 shares in the last quarter. Geode Capital Management LLC grew its position in shares of Rackspace Technology by 17.9% during the 2nd quarter. Geode Capital Management LLC now owns 2,064,549 shares of the company’s stock valued at $2,643,000 after buying an additional 313,636 shares during the last quarter. AustralianSuper Pty Ltd acquired a new stake in shares of Rackspace Technology during the 3rd quarter worth approximately $2,276,000. JPMorgan Chase & Co. lifted its holdings in shares of Rackspace Technology by 1.8% in the 3rd quarter. JPMorgan Chase & Co. now owns 1,464,389 shares of the company’s stock worth $2,065,000 after purchasing an additional 26,510 shares during the last quarter. Finally, Jacobs Levy Equity Management Inc. boosted its position in Rackspace Technology by 42.4% during the 1st quarter. Jacobs Levy Equity Management Inc. now owns 1,255,023 shares of the company’s stock valued at $2,121,000 after purchasing an additional 373,875 shares during the period. Hedge funds and other institutional investors own 82.48% of the company’s stock.

Rackspace Technology Company Profile

Rackspace Technology, Inc operates as a multi cloud technology services company in the Americas, Europe, the Middle East, Africa, and The Asia-Pacific region. It operates through three segments: Multicloud Services, Apps & Cross Platform, and OpenStack Public Cloud. The company provides public and private cloud managed services, which allow customers to determine, manage, and optimize the right infrastructure, platforms, and services; professional services related to designing and building multi cloud solutions and cloud-native applications; and managed hosting and colocation services.