Rackspace Technology (NASDAQ:RXT) Shares Up 9.9% – Time to Buy?

Rackspace Technology, Inc. (NASDAQ:RXT)’s share price rose 9.9% during trading on Thursday . The company traded as high as $4.36 and last traded at $4.3940. Approximately 16,611,255 shares were traded during trading, a decline of 32% from the average daily volume of 24,436,400 shares. The stock had previously closed at $4.00.

Analyst Upgrades and Downgrades

RXT has been the subject of a number of recent research reports. Royal Bank Of Canada lifted their price objective on Rackspace Technology from $1.75 to $2.50 and gave the stock a “sector perform” rating in a research report on Friday, February 27th. Weiss Ratings restated a “sell (d-)” rating on shares of Rackspace Technology in a report on Thursday, January 22nd. Three investment analysts have rated the stock with a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Reduce” and an average price target of $1.95.

Rackspace Technology Stock Performance

The company has a market cap of $1.08 billion, a PE ratio of -7.10 and a beta of 2.23. The firm has a fifty day simple moving average of $2.20 and a 200 day simple moving average of $1.49.

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 business had revenue of $678.10 million during the quarter, compared to the consensus estimate of $660.83 million. Rackspace Technology has set its FY 2026 guidance at -0.200–0.150 EPS. As a group, equities analysts predict that Rackspace Technology, Inc. will post -0.18 EPS for the current fiscal year.

Insider Activity

In other Rackspace Technology news, EVP Dharmendra Kumar Sinha sold 188,123 shares of Rackspace Technology stock in a transaction dated Wednesday, March 18th. The stock was sold at an average price of $1.81, for a total value of $340,502.63. Following the completion of the sale, the executive vice president owned 2,276,057 shares in the company, valued at $4,119,663.17. The trade was a 7.63% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CFO Mark A. Marino sold 14,058 shares of Rackspace Technology stock in a transaction dated Wednesday, March 18th. The shares were sold at an average price of $1.81, for a total value of $25,444.98. Following the completion of the sale, the chief financial officer owned 2,158,874 shares of the company’s stock, valued at $3,907,561.94. This trade represents a 0.65% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 502,440 shares of company stock valued at $867,173 in the last 90 days. 2.90% of the stock is owned by company insiders.

Hedge Funds Weigh In On Rackspace Technology

Several hedge funds and other institutional investors have recently modified their holdings of the company. Vanguard Group Inc. lifted its stake 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. Janus Henderson Group PLC lifted its stake in shares of Rackspace Technology by 179.7% in the 1st quarter. Janus Henderson Group PLC now owns 2,937,670 shares of the company’s stock valued at $2,878,000 after purchasing an additional 1,887,317 shares in the last quarter. Geode Capital Management LLC lifted its stake in shares of Rackspace Technology by 4.2% in the 4th quarter. Geode Capital Management LLC now owns 2,408,000 shares of the company’s stock valued at $2,338,000 after purchasing an additional 96,760 shares in the last quarter. Renaissance Technologies LLC lifted its stake in shares of Rackspace Technology by 14.0% in the 1st quarter. Renaissance Technologies LLC now owns 2,041,600 shares of the company’s stock valued at $2,000,000 after purchasing an additional 250,700 shares in the last quarter. Finally, AustralianSuper Pty Ltd acquired a new position in shares of Rackspace Technology in the 3rd quarter valued at about $2,276,000. 82.48% of the stock is owned by institutional investors and hedge funds.

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.