Rackspace Technology (NASDAQ:RXT) Updates Q2 Earnings Guidance

Rackspace Technology (NASDAQ:RXT) updated its second quarter earnings guidance on Thursday. The company provided earnings per share guidance of ($0.09)-($0.11) for the period, compared to the consensus earnings per share estimate of ($0.11). The company issued revenue guidance of $668-$678 million, compared to the consensus revenue estimate of $675.70 million.

Analysts Set New Price Targets

Several equities analysts recently commented on the company. Raymond James dropped their target price on Rackspace Technology from $3.50 to $3.00 and set an outperform rating for the company in a research note on Wednesday, March 13th. BMO Capital Markets upped their price target on shares of Rackspace Technology from $1.50 to $2.50 and gave the stock a market perform rating in a research report on Wednesday, March 13th. 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. Finally, Royal Bank of Canada restated a sector perform rating and set a $3.00 price objective on shares of Rackspace Technology in a report on Wednesday, March 13th. Two analysts have rated the stock with a sell rating, four have assigned a hold rating and two have issued a buy rating to the stock. According to MarketBeat.com, the company has a consensus rating of Hold and an average target price of $2.31.

Rackspace Technology Trading Up 5.4 %

NASDAQ RXT traded up $0.10 on Thursday, hitting $1.96. 2,489,527 shares of the stock traded hands, compared to its average volume of 1,259,180. The company has a market capitalization of $438.31 million, a P/E ratio of -0.50 and a beta of 1.83. The stock has a 50-day moving average of $1.73 and a 200 day moving average of $1.67. Rackspace Technology has a twelve month low of $1.05 and a twelve month high of $3.10.

Rackspace Technology (NASDAQ:RXT) last posted its quarterly earnings results on Tuesday, March 12th. The company reported ($0.03) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.04) by $0.01. The company had revenue of $720.00 million for the quarter, compared to the consensus estimate of $714.74 million. Rackspace Technology had a negative net margin of 28.33% and a negative return on equity of 10.18%. The company’s revenue for the quarter was down 8.5% on a year-over-year basis. During the same period last year, the firm posted $0.06 EPS. As a group, equities research analysts expect that Rackspace Technology will post -0.38 earnings per share for the current year.

Insider Activity

In other Rackspace Technology news, CEO Amar Maletira sold 37,446 shares of the firm’s stock in a transaction dated Tuesday, February 20th. The stock was sold at an average price of $1.92, for a total transaction of $71,896.32. Following the completion of the sale, the chief executive officer now directly owns 4,638,423 shares in the company, valued at approximately $8,905,772.16. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 1.00% of the stock is owned by insiders.

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.