Rackspace Technology (NASDAQ:RXT) Stock Price Up 5.2% – Still a Buy?

Rackspace Technology, Inc. (NASDAQ:RXT) shares traded up 5.2% on Thursday . The company traded as high as $2.54 and last traded at $2.55. 227,271 shares changed hands during mid-day trading, a decline of 68% from the average session volume of 702,383 shares. The stock had previously closed at $2.42.

Analyst Ratings Changes

Separately, Barclays increased their price objective on Rackspace Technology from $1.00 to $2.00 and gave the company an “underweight” rating in a report on Monday, November 18th. One research analyst has rated the stock with a sell rating, four have given a hold rating and one has assigned a buy rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $2.47.

Rackspace Technology Price Performance

The firm has a market cap of $607.61 million, a PE ratio of -0.77 and a beta of 2.02. The business has a 50-day moving average price of $2.42 and a two-hundred day moving average price of $2.44.

Rackspace Technology (NASDAQ:RXT) last released its quarterly 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 business had revenue of $675.80 million during the quarter, compared to analyst estimates of $675.14 million. During the same quarter in the prior year, the company earned ($0.04) earnings per share. The firm’s revenue for the quarter was down 7.7% compared to the same quarter last year. Equities analysts expect that Rackspace Technology, Inc. will post -0.27 earnings per share for the current fiscal year.

Insider Activity at Rackspace Technology

In related news, Director Anthony C. Roberts purchased 19,455 shares of the company’s stock in a transaction that occurred on Friday, December 6th. The stock was purchased at an average price of $2.60 per share, with a total value of $50,583.00. Following the completion of the transaction, the director now owns 161,930 shares of the company’s stock, valued at approximately $421,018. This trade represents a 13.66 % increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Amar Maletira sold 55,461 shares of Rackspace Technology stock in a transaction on Tuesday, December 3rd. The shares were sold at an average price of $2.54, for a total transaction of $140,870.94. Following the completion of the transaction, the chief executive officer now owns 4,928,523 shares in the company, valued at approximately $12,518,448.42. This trade represents a 1.11 % decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 194,864 shares of company stock valued at $508,997. Company insiders own 2.00% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the business. SG Americas Securities LLC lifted its stake in shares of Rackspace Technology by 64.7% during the fourth quarter. SG Americas Securities LLC now owns 56,778 shares of the company’s stock worth $125,000 after purchasing an additional 22,311 shares in the last quarter. Franklin Resources Inc. acquired a new position in Rackspace Technology during the 3rd quarter worth approximately $443,000. Barclays PLC lifted its position in Rackspace Technology by 86.1% during the 3rd quarter. Barclays PLC now owns 109,997 shares of the company’s stock worth $270,000 after acquiring an additional 50,896 shares in the last quarter. Public Employees Retirement System of Ohio boosted its holdings in Rackspace Technology by 32.0% in the 3rd quarter. Public Employees Retirement System of Ohio now owns 127,851 shares of the company’s stock worth $313,000 after acquiring an additional 30,983 shares during the period. Finally, Jane Street Group LLC grew its position in Rackspace Technology by 27.4% in the third quarter. Jane Street Group LLC now owns 773,454 shares of the company’s stock valued at $1,895,000 after acquiring an additional 166,528 shares in the last quarter. 82.48% of the stock is owned by institutional investors and hedge funds.

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.