Rackspace Technology (NASDAQ:RXT) Shares Gap Down – Time to Sell?

Rackspace Technology, Inc. (NASDAQ:RXT)’s stock price gapped down before the market opened on Friday . The stock had previously closed at $7.29, but opened at $6.74. Rackspace Technology shares last traded at $7.2240, with a volume of 7,711,203 shares.

Analysts Set New Price Targets

A number of equities research analysts have recently weighed in on RXT shares. Royal Bank Of Canada boosted 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. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Rackspace Technology in a research report on Thursday, January 22nd. Three analysts have rated the stock with a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Reduce” and an average price target of $1.95.

Rackspace Technology Stock Down 14.3%

The company has a market capitalization of $1.56 billion, a price-to-earnings ratio of -10.39 and a beta of 2.23. The business’s 50-day moving average is $2.00 and its 200-day moving average is $1.40.

Rackspace Technology (NASDAQ:RXT) last issued its quarterly earnings data on Thursday, May 7th. The company reported ($0.06) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.03) by ($0.03). The firm had revenue of $678.10 million during the quarter, compared to analyst estimates of $660.83 million. Rackspace Technology has set its FY 2026 guidance at -0.200–0.150 EPS. As a group, analysts expect that Rackspace Technology, Inc. will post -0.18 EPS for the current year.

Insider Activity at Rackspace Technology

In related news, CFO Mark A. Marino sold 234,683 shares of the firm’s stock in a transaction on Monday, February 23rd. The shares were sold at an average price of $1.63, for a total transaction of $382,533.29. Following the sale, the chief financial officer owned 2,193,115 shares in the company, 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 Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Dharmendra Kumar Sinha sold 188,123 shares of Rackspace Technology stock in a transaction on Wednesday, March 18th. The shares were 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 of the company’s stock, valued at $4,119,663.17. The trade was a 7.63% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 502,440 shares of company stock valued at $867,173. Insiders own 2.90% of the company’s stock.

Hedge Funds Weigh In On Rackspace Technology

Institutional investors and hedge funds have recently modified their holdings of the business. Abel Hall LLC acquired a new position in Rackspace Technology in the 1st quarter worth about $30,000. Creative Planning grew its holdings in Rackspace Technology by 114.2% in the second 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. Savant Capital LLC purchased a new stake in shares of Rackspace Technology in the third quarter valued at approximately $33,000. SG Americas Securities LLC purchased a new stake in shares of Rackspace Technology in the first quarter valued at approximately $34,000. Finally, Jump Financial LLC acquired a new position in shares of Rackspace Technology during the 4th quarter worth approximately $34,000. Hedge funds and other institutional investors 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.