Rackspace Technology (NASDAQ:RXT) Trading Down 14.3% – Should You Sell?

Rackspace Technology, Inc. (NASDAQ:RXT)’s share price was down 14.3% during trading on Monday . The stock traded as low as $4.95 and last traded at $4.9890. Approximately 8,052,953 shares changed hands during mid-day trading, a decline of 67% from the average daily volume of 24,196,463 shares. The stock had previously closed at $5.82.

Analyst Upgrades and Downgrades

Several equities analysts recently commented on RXT shares. Royal Bank Of Canada upped their price objective on Rackspace Technology from $1.75 to $2.50 and gave the company a “sector perform” rating in a research note on Friday, February 27th. Weiss Ratings reiterated 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 stock. According to MarketBeat, Rackspace Technology currently has a consensus rating of “Reduce” and an average price target of $1.95.

Rackspace Technology Trading Down 17.3%

The business’s fifty day simple moving average is $2.06 and its 200-day simple moving average is $1.42. The firm has a market cap of $1.20 billion, a P/E ratio of -7.89 and a beta of 2.23.

Rackspace Technology (NASDAQ:RXT) last issued its earnings results on Thursday, May 7th. The company reported ($0.06) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.03) by ($0.03). The business 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. As a group, research analysts expect that Rackspace Technology, Inc. will post -0.18 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Rackspace Technology news, EVP Dharmendra Kumar Sinha sold 188,123 shares of the business’s stock in a transaction on Wednesday, March 18th. The shares were sold at an average price of $1.81, for a total transaction of $340,502.63. Following the sale, 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 sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CFO Mark A. Marino sold 14,058 shares of the business’s stock in a transaction on Wednesday, March 18th. The shares were 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 in the company, valued at $3,907,561.94. The trade was a 0.65% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 502,440 shares of company stock worth $867,173 in the last three months. Insiders own 2.90% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Abel Hall LLC bought a new position in shares of Rackspace Technology in the first quarter worth $30,000. Creative Planning increased its holdings in shares of Rackspace Technology by 114.2% in the second quarter. Creative Planning now owns 25,715 shares of the company’s stock worth $33,000 after purchasing an additional 13,708 shares during the period. Savant Capital LLC bought a new position in shares of Rackspace Technology in the third quarter worth $33,000. SG Americas Securities LLC bought a new position in shares of Rackspace Technology in the first quarter worth $34,000. Finally, Jump Financial LLC bought a new position in shares of Rackspace Technology in the fourth quarter worth $34,000. Institutional investors own 82.48% of the company’s stock.

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.