Rackspace Technology, Inc. (NASDAQ:RXT) Given Average Rating of “Reduce” by Analysts

Shares of Rackspace Technology, Inc. (NASDAQ:RXT) have been assigned an average recommendation of “Reduce” from the six ratings firms that are covering the company, MarketBeat Ratings reports. Two research analysts have rated the stock with a sell recommendation and four have issued a hold recommendation on the company. The average twelve-month price target among brokerages that have issued a report on the stock in the last year is $1.5125.

A number of equities research analysts have recently weighed in on RXT shares. Royal Bank Of Canada lowered their price target on Rackspace Technology from $2.00 to $1.75 and set a “sector perform” rating for the company in a report on Monday, November 10th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Rackspace Technology in a research note on Thursday, January 22nd.

Insider Activity at Rackspace Technology

In related news, EVP Dharmendra Kumar Sinha sold 91,151 shares of the business’s stock in a transaction dated Friday, November 28th. The shares were sold at an average price of $1.04, for a total transaction of $94,797.04. Following the completion of the sale, the executive vice president owned 2,568,895 shares of the company’s stock, valued at $2,671,650.80. This represents a 3.43% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 2.90% of the company’s stock.

Hedge Funds Weigh In On Rackspace Technology

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. R Squared Ltd grew its holdings in shares of Rackspace Technology by 74.3% during the third quarter. R Squared Ltd now owns 25,127 shares of the company’s stock valued at $35,000 after purchasing an additional 10,707 shares during the last quarter. Engineers Gate Manager LP boosted its position in Rackspace Technology by 47.1% during the 2nd quarter. Engineers Gate Manager LP now owns 34,777 shares of the company’s stock valued at $45,000 after purchasing an additional 11,141 shares during the period. Alliancebernstein L.P. grew its stake in Rackspace Technology by 4.0% during the 3rd quarter. Alliancebernstein L.P. now owns 290,750 shares of the company’s stock worth $410,000 after buying an additional 11,300 shares during the last quarter. Creative Planning grew its stake in Rackspace Technology by 114.2% during the 2nd quarter. Creative Planning now owns 25,715 shares of the company’s stock worth $33,000 after buying an additional 13,708 shares during the last quarter. Finally, Intech Investment Management LLC increased its position in Rackspace Technology by 45.4% in the second quarter. Intech Investment Management LLC now owns 51,692 shares of the company’s stock worth $66,000 after buying an additional 16,152 shares during the period. 82.48% of the stock is currently owned by institutional investors and hedge funds.

Rackspace Technology Trading Down 8.6%

Shares of RXT stock opened at $0.56 on Tuesday. The firm has a fifty day simple moving average of $0.97 and a 200-day simple moving average of $1.22. The company has a market capitalization of $136.19 million, a PE ratio of -0.52 and a beta of 2.13. Rackspace Technology has a twelve month low of $0.55 and a twelve month high of $3.03.

Rackspace Technology (NASDAQ:RXT) last announced its earnings results on Thursday, November 6th. The company reported ($0.05) earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of ($0.05). The business had revenue of $671.20 million for the quarter, compared to analysts’ expectations of $666.83 million. The firm’s revenue was down .7% compared to the same quarter last year. During the same period in the previous year, the firm posted ($0.04) earnings per share. Rackspace Technology has set its Q4 2025 guidance at -0.050–0.030 EPS.

About Rackspace Technology

Rackspace Technology (NASDAQ: RXT) is a leading provider of managed multi-cloud solutions and services, specializing in the deployment, management and optimization of public and private cloud environments. The company helps organizations design and operate applications across platforms such as Amazon Web Services (AWS), Microsoft Azure, Google Cloud and its own private cloud infrastructure. Rackspace’s core offerings include cloud migration, application modernization, data protection, security services and 24x7x365 operational support.

Beyond cloud hosting, Rackspace offers a range of professional services designed to accelerate digital transformation initiatives.