Rackspace Technology (NASDAQ:RXT) Trading Up 10.9% – Here’s Why

Rackspace Technology, Inc. (NASDAQ:RXT)’s stock price shot up 10.9% on Tuesday . The stock traded as high as $5.46 and last traded at $5.1990. 11,115,648 shares changed hands during mid-day trading, a decline of 52% from the average session volume of 23,392,861 shares. The stock had previously closed at $4.69.

Analysts Set New Price Targets

Several research firms have recently issued reports on RXT. Royal Bank Of Canada boosted their target price 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 reissued a “sell (d-)” rating on shares of Rackspace Technology in a research note on Thursday, January 22nd. Three equities research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Reduce” and a consensus price target of $1.95.

Rackspace Technology Stock Up 8.8%

The stock has a market capitalization of $1.27 billion, a P/E ratio of -8.56 and a beta of 2.23. The company has a fifty day simple moving average of $1.74 and a two-hundred day simple moving average of $1.29.

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 company 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, equities analysts forecast that Rackspace Technology, Inc. will post -0.18 earnings per share for the current year.

Insider Buying and Selling

In related news, EVP Dharmendra Kumar Sinha sold 188,123 shares of the firm’s stock in a transaction on Wednesday, March 18th. The shares were sold at an average price of $1.81, for a total value of $340,502.63. Following the completion of the transaction, the executive vice president owned 2,276,057 shares of the company’s stock, valued at approximately $4,119,663.17. This trade represents a 7.63% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Mark A. Marino sold 14,058 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 $25,444.98. Following the completion of the sale, the chief financial officer owned 2,158,874 shares in the company, valued at $3,907,561.94. The trade was a 0.65% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 502,440 shares of company stock worth $867,173. 2.90% of the stock is owned by insiders.

Institutional Trading of Rackspace Technology

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Vanguard Group Inc. grew its stake in Rackspace Technology by 6.1% in the third 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 boosted its holdings 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 buying an additional 96,760 shares during the last quarter. AustralianSuper Pty Ltd bought a new position in shares of Rackspace Technology in the third quarter valued at $2,276,000. JPMorgan Chase & Co. grew its stake in shares of Rackspace Technology by 1.8% in the third quarter. JPMorgan Chase & Co. now owns 1,464,389 shares of the company’s stock valued at $2,065,000 after buying an additional 26,510 shares in the last quarter. Finally, Janus Henderson Group PLC increased its holdings in Rackspace Technology by 70.7% during the fourth quarter. Janus Henderson Group PLC now owns 1,050,353 shares of the company’s stock worth $1,020,000 after buying an additional 435,113 shares during the last quarter. Institutional investors 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.