Rackspace Technology (NASDAQ:RXT) Announces Earnings Results

Rackspace Technology (NASDAQ:RXT) posted its quarterly earnings results on Monday. The company reported ($0.06) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.08) by $0.02, FiscalAI reports. The business had revenue of $609.10 million for the quarter, compared to analysts’ expectations of $573.96 million.

Rackspace Technology Stock Up 7.5%

Shares of RXT traded up $0.19 during mid-day trading on Monday, reaching $2.72. The company had a trading volume of 7,916,932 shares, compared to its average volume of 17,229,689. Rackspace Technology has a 52-week low of $0.39 and a 52-week high of $8.60. The stock has a market capitalization of $693.25 million, a P/E ratio of -4.18 and a beta of 3.29. The stock has a 50 day moving average of $3.32 and a two-hundred day moving average of $3.24.

Insider Buying and Selling

In other Rackspace Technology news, CEO Gajakarnan Kandiah sold 498,728 shares of the business’s stock in a transaction that occurred on Friday, September 4th. The stock was sold at an average price of $3.21, for a total value of $1,600,916.88. Following the completion of the transaction, the chief executive officer directly owned 3,684,955 shares of the company’s stock, valued at approximately $11,828,705.55. The trade was a 11.92% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Anthony Scott sold 48,780 shares of the company’s stock in a transaction that occurred on Friday, August 14th. The stock was sold at an average price of $4.25, for a total value of $207,315.00. Following the completion of the sale, the director owned 180,215 shares in the company, valued at approximately $765,913.75. This represents a 21.30% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 714,141 shares of company stock valued at $2,299,799 in the last three months. 2.30% of the stock is currently owned by insiders.

Wall Street Analyst Weigh In

Several research firms have recently commented on RXT. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Rackspace Technology in a report on Friday, August 28th. Wall Street Zen cut shares of Rackspace Technology from a “hold” rating to a “sell” rating in a report on Saturday, August 15th. One analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Reduce” and a consensus target price of $4.00.

About Rackspace Technology

Rackspace Technology, Inc is a technology services company that helps businesses design, build, operate and optimize information technology environments across public, private and hybrid clouds. Its offerings are intended to support organizations at various stages of cloud adoption, from migration and modernization to ongoing management and optimization.

The company provides managed cloud services for major cloud platforms, including Amazon Web Services, Microsoft Azure and Google Cloud.