Rackspace Technology (NASDAQ:RXT) Shares Down 7.9% – Should You Sell?

Rackspace Technology, Inc. (NASDAQ:RXT) shares were down 7.9% during mid-day trading on Thursday . The company traded as low as $2.79 and last traded at $2.79. Approximately 730,589 shares changed hands during trading, a decline of 34% from the average daily volume of 1,102,841 shares. The stock had previously closed at $3.03.

Wall Street Analysts Forecast Growth

Separately, UBS Group raised their price target on shares of Rackspace Technology from $2.10 to $2.30 and gave the stock a “neutral” rating in a research note on Friday, August 16th. One research analyst has rated the stock with a sell rating, four have given a hold rating and one has issued a buy rating to the company. According to MarketBeat, the stock has a consensus rating of “Hold” and a consensus target price of $2.34.

Rackspace Technology Stock Performance

The company has a fifty day simple moving average of $2.55 and a two-hundred day simple moving average of $2.39. The firm has a market capitalization of $550.72 million, a PE ratio of -0.69 and a beta of 1.97.

Rackspace Technology (NASDAQ:RXT) last released its quarterly earnings data on Tuesday, November 12th. The company reported ($0.04) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.08) by $0.04. The business had revenue of $675.80 million during the quarter, compared to analysts’ expectations of $675.14 million. The firm’s revenue was down 7.7% compared to the same quarter last year. During the same period last year, the company earned ($0.04) earnings per share. On average, equities analysts anticipate that Rackspace Technology, Inc. will post -0.32 earnings per share for the current fiscal year.

Insider Activity at Rackspace Technology

In other Rackspace Technology news, CEO Amar Maletira sold 84,823 shares of the business’s stock in a transaction dated Monday, September 30th. The shares were sold at an average price of $2.42, for a total value of $205,271.66. Following the completion of the transaction, the chief executive officer now directly owns 5,158,399 shares in the company, valued at approximately $12,483,325.58. The trade was a 1.62 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Insiders have sold a total of 227,321 shares of company stock valued at $542,103 over the last ninety days. 2.00% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of RXT. Creative Planning acquired a new position in Rackspace Technology during the third quarter valued at $29,000. Allspring Global Investments Holdings LLC acquired a new stake in Rackspace Technology during the second quarter worth about $40,000. US Bancorp DE raised its position in Rackspace Technology by 10,766.2% during the third quarter. US Bancorp DE now owns 16,408 shares of the company’s stock valued at $40,000 after acquiring an additional 16,257 shares in the last quarter. Intech Investment Management LLC acquired a new position in Rackspace Technology in the third quarter valued at approximately $50,000. Finally, Mitsubishi UFJ Trust & Banking Corp boosted its position in Rackspace Technology by 98.2% in the 1st quarter. Mitsubishi UFJ Trust & Banking Corp now owns 33,263 shares of the company’s stock worth $51,000 after purchasing an additional 16,484 shares in the last quarter. Hedge funds and other institutional investors own 82.48% of the company’s stock.

About Rackspace Technology

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.