Rackspace Technology, Inc. (NASDAQ:RXT) Given Consensus Rating of “Hold” by Brokerages

Shares of Rackspace Technology, Inc. (NASDAQ:RXT) have been given a consensus recommendation of “Hold” by the eight brokerages that are presently covering the company, MarketBeat reports. Two equities research analysts have rated the stock with a sell recommendation, four have given a hold recommendation and two have given a buy recommendation to the company. The average 12-month price target among brokers that have issued ratings on the stock in the last year is $2.31.

Several brokerages have issued reports on RXT. Royal Bank of Canada reiterated a “sector perform” rating and set a $3.00 target price on shares of Rackspace Technology in a research report on Wednesday, March 13th. BMO Capital Markets increased their price target on shares of Rackspace Technology from $1.50 to $2.50 and gave the stock a “market perform” rating in a report on Wednesday, March 13th. Raymond James decreased their price target on shares of Rackspace Technology from $3.50 to $3.00 and set an “outperform” rating on the stock in a report on Wednesday, March 13th. Finally, Evercore ISI decreased their price target on shares of Rackspace Technology from $3.00 to $2.00 and set an “in-line” rating on the stock in a report on Wednesday, March 13th.

Rackspace Technology Stock Performance

Rackspace Technology stock opened at $1.58 on Friday. Rackspace Technology has a fifty-two week low of $1.05 and a fifty-two week high of $3.10. The stock has a market cap of $347.21 million, a P/E ratio of -0.40 and a beta of 1.94. The firm’s fifty day moving average price is $1.79 and its 200-day moving average price is $1.66.

Rackspace Technology (NASDAQ:RXT) last announced its earnings results on Tuesday, March 12th. The company reported ($0.03) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.04) by $0.01. The business had revenue of $720.00 million for the quarter, compared to analyst estimates of $714.74 million. Rackspace Technology had a negative return on equity of 10.18% and a negative net margin of 28.33%. The company’s quarterly revenue was down 8.5% compared to the same quarter last year. During the same period in the prior year, the company earned $0.06 EPS. Sell-side analysts predict that Rackspace Technology will post -0.38 earnings per share for the current year.

Insider Activity at Rackspace Technology

In related news, CEO Amar Maletira sold 37,446 shares of the stock in a transaction on Tuesday, February 20th. The shares were sold at an average price of $1.92, for a total transaction of $71,896.32. Following the transaction, the chief executive officer now owns 4,638,423 shares of the company’s stock, valued at approximately $8,905,772.16. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. In other Rackspace Technology news, EVP Brian Lillie sold 139,701 shares of the stock in a transaction on Thursday, January 25th. The shares were sold at an average price of $1.62, for a total transaction of $226,315.62. Following the completion of the sale, the executive vice president now owns 1,608,258 shares of the company’s stock, valued at approximately $2,605,377.96. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CEO Amar Maletira sold 37,446 shares of the stock in a transaction on Tuesday, February 20th. The shares were sold at an average price of $1.92, for a total transaction of $71,896.32. Following the sale, the chief executive officer now directly owns 4,638,423 shares of the company’s stock, valued at approximately $8,905,772.16. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 189,463 shares of company stock valued at $318,164. Insiders own 1.00% of the company’s stock.

Institutional Investors Weigh In On Rackspace Technology

Institutional investors and hedge funds have recently modified their holdings of the stock. Fountainhead AM LLC purchased a new position in Rackspace Technology during the 4th quarter valued at about $25,000. Virtu Financial LLC bought a new stake in Rackspace Technology during the 4th quarter valued at about $26,000. ProShare Advisors LLC bought a new stake in Rackspace Technology during the 2nd quarter valued at about $28,000. Raymond James & Associates bought a new stake in Rackspace Technology during the 4th quarter valued at about $29,000. Finally, The Manufacturers Life Insurance Company bought a new stake in Rackspace Technology during the 4th quarter valued at about $29,000. 82.48% of the stock is owned by hedge funds and other 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.