Rackspace Technology (NASDAQ:RXT) Trading Up 10.9% – Time to Buy?

Rackspace Technology, Inc. (NASDAQ:RXT) shot up 10.9% during mid-day trading on Tuesday . The company traded as high as $5.46 and last traded at $5.1990. 11,115,648 shares were traded during mid-day trading, a decline of 52% from the average session volume of 23,392,861 shares. The stock had previously closed at $4.69.

Wall Street Analyst Weigh In

A number of brokerages have recently weighed in on RXT. Royal Bank Of Canada boosted their price objective on shares of Rackspace Technology from $1.75 to $2.50 and gave the company a “sector perform” rating in a report on Friday, February 27th. Weiss Ratings restated a “sell (d-)” rating on shares of Rackspace Technology in a research note on Thursday, January 22nd. Three analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Reduce” and an average price target of $1.95.

Rackspace Technology Stock Performance

The company has a market cap of $1.82 billion, a price-to-earnings ratio of -11.95 and a beta of 2.23. The company’s fifty day moving average is $1.90 and its two-hundred day moving average is $1.36.

Rackspace Technology (NASDAQ:RXT) last released its quarterly earnings data on Thursday, May 7th. The company reported ($0.06) EPS for the quarter, missing the consensus estimate of ($0.03) by ($0.03). The firm had revenue of $678.10 million for the quarter, compared to analyst estimates of $660.83 million. Rackspace Technology has set its FY 2026 guidance at -0.200–0.150 EPS. On average, sell-side analysts anticipate that Rackspace Technology, Inc. will post -0.18 EPS for the current fiscal year.

Insider Buying and Selling at Rackspace Technology

In other Rackspace Technology news, CFO Mark A. Marino sold 14,058 shares of the stock in a transaction dated Wednesday, March 18th. The stock was sold at an average price of $1.81, for a total transaction of $25,444.98. Following the sale, the chief financial officer directly owned 2,158,874 shares of the company’s stock, valued at approximately $3,907,561.94. This trade represents a 0.65% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Dharmendra Kumar Sinha sold 188,123 shares of Rackspace Technology stock in a transaction dated Wednesday, March 18th. The shares were sold at an average price of $1.81, for a total value of $340,502.63. Following the transaction, the executive vice president owned 2,276,057 shares of the company’s stock, valued at $4,119,663.17. The trade was a 7.63% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 502,440 shares of company stock worth $867,173. 2.90% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. AustralianSuper Pty Ltd purchased a new stake in Rackspace Technology in the 3rd quarter worth approximately $2,276,000. Two Sigma Investments LP lifted its stake in shares of Rackspace Technology by 368.4% in the 3rd quarter. Two Sigma Investments LP now owns 673,689 shares of the company’s stock valued at $950,000 after purchasing an additional 529,862 shares during the period. Janus Henderson Group PLC lifted its stake in shares of Rackspace Technology by 70.7% in the 4th quarter. Janus Henderson Group PLC now owns 1,050,353 shares of the company’s stock valued at $1,020,000 after purchasing an additional 435,113 shares during the period. Vanguard Group Inc. boosted its holdings in Rackspace Technology by 6.1% during the third quarter. Vanguard Group Inc. now owns 6,288,882 shares of the company’s stock worth $8,867,000 after buying an additional 359,087 shares in the last quarter. Finally, Geode Capital Management LLC grew its position in Rackspace Technology by 17.9% during the second quarter. Geode Capital Management LLC now owns 2,064,549 shares of the company’s stock valued at $2,643,000 after buying an additional 313,636 shares during the period. 82.48% of the stock is owned by institutional investors and hedge funds.

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.