Rackspace Technology, Inc. (NASDAQ:RXT) Receives Average Rating of “Hold” from Brokerages

Rackspace Technology, Inc. (NASDAQ:RXT) has been assigned a consensus rating of “Hold” from the six brokerages that are currently covering the company, Marketbeat reports. One analyst has rated the stock with a sell recommendation, four have issued a hold recommendation and one has issued a buy recommendation on the company. The average 1 year target price among brokerages that have updated their coverage on the stock in the last year is $2.47.

Separately, Barclays upped their target price on Rackspace Technology from $1.00 to $2.00 and gave the stock an “underweight” rating in a research note on Monday, November 18th.

Rackspace Technology Stock Down 7.1 %

RXT opened at $2.24 on Thursday. The stock has a market capitalization of $509.75 million, a price-to-earnings ratio of -0.64 and a beta of 1.99. Rackspace Technology has a twelve month low of $1.45 and a twelve month high of $3.41. The company has a 50-day simple moving average of $2.57 and a 200 day simple moving average of $2.48.

Rackspace Technology (NASDAQ:RXT) last issued its earnings results on Tuesday, November 12th. The company reported ($0.04) EPS for the quarter, beating the consensus estimate of ($0.07) by $0.03. The firm had revenue of $675.80 million during the quarter, compared to analyst estimates of $675.14 million. Rackspace Technology’s quarterly revenue was down 7.7% compared to the same quarter last year. During the same quarter in the previous year, the firm posted ($0.04) earnings per share. Sell-side analysts anticipate that Rackspace Technology will post -0.27 EPS for the current fiscal year.

Insider Activity

In other Rackspace Technology news, EVP Dharmendra Kumar Sinha sold 88,548 shares of the company’s stock in a transaction dated Friday, November 29th. The stock was sold at an average price of $2.67, for a total value of $236,423.16. Following the completion of the transaction, the executive vice president now owns 2,334,166 shares of the company’s stock, valued at $6,232,223.22. This represents a 3.65 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CTO Srini Koushik sold 19,470 shares of the stock in a transaction dated Friday, November 29th. The shares were sold at an average price of $2.67, for a total value of $51,984.90. Following the completion of the transaction, the chief technology officer now owns 1,026,279 shares of the company’s stock, valued at $2,740,164.93. This represents a 1.86 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 362,239 shares of company stock worth $909,917. Corporate insiders own 2.00% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in RXT. Renaissance Technologies LLC grew its stake in shares of Rackspace Technology by 23.7% in the second quarter. Renaissance Technologies LLC now owns 1,339,200 shares of the company’s stock worth $3,991,000 after purchasing an additional 256,900 shares during the last quarter. Jacobs Levy Equity Management Inc. raised its position in Rackspace Technology by 139.4% during the 3rd quarter. Jacobs Levy Equity Management Inc. now owns 814,624 shares of the company’s stock worth $1,996,000 after purchasing an additional 474,299 shares during the last quarter. Jane Street Group LLC lifted its holdings in Rackspace Technology by 27.4% during the 3rd quarter. Jane Street Group LLC now owns 773,454 shares of the company’s stock worth $1,895,000 after buying an additional 166,528 shares during the period. Charles Schwab Investment Management Inc. grew its position in shares of Rackspace Technology by 7.6% in the 3rd quarter. Charles Schwab Investment Management Inc. now owns 590,724 shares of the company’s stock valued at $1,447,000 after buying an additional 41,697 shares during the last quarter. Finally, ClariVest Asset Management LLC increased its stake in shares of Rackspace Technology by 2.8% in the second quarter. ClariVest Asset Management LLC now owns 379,721 shares of the company’s stock valued at $1,132,000 after buying an additional 10,281 shares during the period. Institutional investors and hedge funds 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.