Rackspace Technology, Inc. (NASDAQ:RXT) Receives Consensus Recommendation of “Hold” from Analysts

Rackspace Technology, Inc. (NASDAQ:RXT) has earned an average rating of “Hold” from the six brokerages that are currently covering the stock, MarketBeat.com reports. One analyst has rated the stock with a sell rating, four have issued a hold rating and one has given a buy rating to the company. The average 12 month price target among brokers that have issued a report on the stock in the last year is $2.47.

Several equities analysts have issued reports on RXT shares. Barclays lifted their price objective on Rackspace Technology from $1.00 to $2.00 and gave the company an “underweight” rating in a research report on Monday, November 18th. UBS Group upped their price target on shares of Rackspace Technology from $2.10 to $2.30 and gave the stock a “neutral” rating in a research report on Friday, August 16th.

Rackspace Technology Stock Performance

RXT opened at $2.58 on Friday. The firm has a market cap of $587.13 million, a price-to-earnings ratio of -0.74 and a beta of 1.97. The firm’s 50-day simple moving average is $2.55 and its 200-day simple moving average is $2.41. Rackspace Technology has a twelve month low of $1.22 and a twelve month high of $3.41.

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

Insider Transactions at Rackspace Technology

In other Rackspace Technology news, CEO Amar Maletira sold 82,552 shares of the firm’s stock in a transaction that occurred on Wednesday, October 2nd. The shares were sold at an average price of $2.37, for a total value of $195,648.24. Following the transaction, the chief executive officer now directly owns 4,983,984 shares of the company’s stock, valued at approximately $11,812,042.08. This trade represents a 1.63 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 2.00% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Barclays PLC increased its holdings in Rackspace Technology by 86.1% in the third quarter. Barclays PLC now owns 109,997 shares of the company’s stock valued at $270,000 after purchasing an additional 50,896 shares during the last quarter. Public Employees Retirement System of Ohio increased its stake in shares of 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 valued at $313,000 after acquiring an additional 30,983 shares during the last quarter. Jane Street Group LLC raised its position in shares of Rackspace Technology by 27.4% in the 3rd 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 during the period. Point72 Asset Management L.P. acquired a new position in Rackspace Technology during the third quarter valued at approximately $135,000. Finally, Jacobs Levy Equity Management Inc. increased its stake in Rackspace Technology by 139.4% in the third quarter. Jacobs Levy Equity Management Inc. now owns 814,624 shares of the company’s stock valued at $1,996,000 after purchasing an additional 474,299 shares in the last quarter. 82.48% of the stock is currently owned by institutional investors.

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.