Rackspace Technology (NASDAQ:RXT) Sets New 52-Week High Following Better-Than-Expected Earnings

Rackspace Technology, Inc. (NASDAQ:RXT)’s stock price reached a new 52-week high during trading on Wednesday after the company announced better than expected quarterly earnings. The company traded as high as $3.39 and last traded at $3.26, with a volume of 532325 shares. The stock had previously closed at $2.86.

The company reported ($0.04) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.08) by $0.04. The company had revenue of $675.80 million during the quarter, compared to analyst estimates of $675.14 million. During the same period in the prior year, the firm posted ($0.04) EPS. Rackspace Technology’s revenue was down 7.7% compared to the same quarter last year.

Analyst Upgrades and Downgrades

Separately, UBS Group raised their price objective on Rackspace Technology from $2.10 to $2.30 and gave the stock a “neutral” rating in a research note on Friday, August 16th. One investment 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. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $2.34.

Insider Activity at Rackspace Technology

In other Rackspace Technology news, CEO Amar Maletira sold 84,823 shares of Rackspace Technology stock in a transaction that occurred on Monday, September 30th. The stock was sold at an average price of $2.42, for a total value of $205,271.66. Following the completion of the sale, 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 0.00 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders have sold a total of 227,321 shares of company stock worth $542,103 over the last quarter. Company insiders own 2.00% of the company’s stock.

Hedge Funds Weigh In On Rackspace Technology

Institutional investors have recently modified their holdings of the company. The Manufacturers Life Insurance Company grew its position in Rackspace Technology by 44.7% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 30,019 shares of the company’s stock valued at $89,000 after purchasing an additional 9,275 shares during the period. ClariVest Asset Management LLC increased its position in shares of Rackspace Technology by 2.8% during the second quarter. ClariVest Asset Management LLC now owns 379,721 shares of the company’s stock worth $1,132,000 after acquiring an additional 10,281 shares in the last quarter. Creative Planning acquired a new stake in shares of Rackspace Technology in the 3rd quarter worth about $29,000. Allspring Global Investments Holdings LLC acquired a new stake in shares of Rackspace Technology in the 2nd quarter worth about $40,000. Finally, SG Americas Securities LLC boosted its stake in Rackspace Technology by 64.7% during the 3rd quarter. SG Americas Securities LLC now owns 34,467 shares of the company’s stock valued at $84,000 after purchasing an additional 13,543 shares during the last quarter. 82.48% of the stock is owned by institutional investors and hedge funds.

Rackspace Technology Stock Up 5.9 %

The firm has a 50 day moving average price of $2.52 and a 200 day moving average price of $2.38.

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.