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

Rackspace Technology, Inc. (NASDAQ:RXT) has earned an average rating of “Hold” from the six analysts that are currently covering the company, Marketbeat.com reports. One analyst has rated the stock with a sell rating, four have issued a hold rating and one has issued a buy rating on 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.

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

Rackspace Technology Stock Performance

RXT stock opened at $2.59 on Monday. The business’s 50-day moving average is $2.47 and its two-hundred day moving average is $2.47. The company has a market cap of $589.40 million, a price-to-earnings ratio of -0.74 and a beta of 2.02. Rackspace Technology has a fifty-two week low of $1.45 and a fifty-two week high of $3.41.

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

Insider Transactions at Rackspace Technology

In related news, Director Anthony C. Roberts acquired 19,455 shares of the business’s stock in a transaction on Friday, December 6th. The stock was acquired at an average cost of $2.60 per share, with a total value of $50,583.00. Following the acquisition, the director now directly owns 161,930 shares in the company, valued at $421,018. This represents a 13.66 % increase in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, CTO Srini Koushik sold 19,470 shares of the business’s stock in a transaction on Friday, November 29th. The stock was sold at an average price of $2.67, for a total transaction of $51,984.90. Following the completion of the transaction, the chief technology officer now directly owns 1,026,279 shares in the company, valued at $2,740,164.93. This trade represents a 1.86 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 194,864 shares of company stock valued at $508,997 over the last three months. Corporate insiders own 2.00% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Franklin Resources Inc. bought a new position in shares of Rackspace Technology in the 3rd quarter valued at about $443,000. Barclays PLC lifted its stake in shares of Rackspace Technology by 86.1% in the 3rd 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 position in shares of Rackspace Technology by 32.0% during the 3rd quarter. Public Employees Retirement System of Ohio now owns 127,851 shares of the company’s stock valued at $313,000 after purchasing an additional 30,983 shares during the last quarter. Jane Street Group LLC raised 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 valued at $1,895,000 after buying an additional 166,528 shares during the period. Finally, Point72 Asset Management L.P. bought a new stake in Rackspace Technology in the third quarter worth $135,000. 82.48% of the stock is currently owned by institutional investors.

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.