Rackspace Technology (NASDAQ:RXT) Stock Price Up 13.7% – Should You Buy?

Shares of Rackspace Technology, Inc. (NASDAQ:RXT) rose 13.7% during mid-day trading on Monday. The company traded as high as $2.81 and last traded at $2.8770. 2,596,826 shares were traded during trading, a decline of 85% from the average session volume of 17,205,436 shares. The stock had previously closed at $2.53.

Analyst Ratings Changes

A number of research firms have recently commented on RXT. Wall Street Zen cut Rackspace Technology from a “hold” rating to a “sell” rating in a research report on Saturday, August 15th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Rackspace Technology in a research report on Friday, August 28th. One research analyst has rated the stock with a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Reduce” and an average price target of $4.00.

Rackspace Technology Stock Performance

The stock has a market capitalization of $717.47 million, a PE ratio of -4.33 and a beta of 3.29. The stock’s 50 day moving average is $3.32 and its two-hundred day moving average is $3.24.

Rackspace Technology (NASDAQ:RXT) last posted its quarterly earnings data on Monday, August 10th. The company reported ($0.08) EPS for the quarter, topping the consensus estimate of ($0.09) by $0.01. The firm had revenue of $670.10 million for the quarter, compared to analysts’ expectations of $646.00 million. Equities research analysts expect that Rackspace Technology, Inc. will post -0.28 EPS for the current fiscal year.

Insider Transactions at Rackspace Technology

In related news, EVP Dharmendra Sinha sold 107,002 shares of the business’s stock in a transaction that occurred on Wednesday, September 2nd. The stock was sold at an average price of $2.95, for a total transaction of $315,655.90. Following the completion of the sale, the executive vice president directly owned 3,263,429 shares in the company, valued at approximately $9,627,115.55. The trade was a 3.17% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 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, CFO Mark Marino sold 51,373 shares of the stock in a transaction on Wednesday, September 2nd. The shares were sold at an average price of $2.95, for a total value of $151,550.35. Following the completion of the transaction, the chief financial officer directly owned 2,865,853 shares of the company’s stock, valued at approximately $8,454,266.35. This represents a 1.76% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 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. Over the last three months, insiders sold 714,141 shares of company stock valued at $2,299,799. Insiders own 2.30% of the company’s stock.

Institutional Trading of Rackspace Technology

A number of hedge funds have recently bought and sold shares of the business. BlackRock Inc. acquired a new position in shares of Rackspace Technology during the 2nd quarter worth approximately $51,411,000. Janus Henderson Group PLC grew its holdings in shares of Rackspace Technology by 179.7% during the 1st quarter. Janus Henderson Group PLC now owns 2,937,670 shares of the company’s stock worth $2,878,000 after purchasing an additional 1,887,317 shares during the period. Renaissance Technologies LLC increased its position in shares of Rackspace Technology by 14.0% during the first quarter. Renaissance Technologies LLC now owns 2,041,600 shares of the company’s stock valued at $2,000,000 after acquiring an additional 250,700 shares during the last quarter. CenterBook Partners LP purchased a new position in shares of Rackspace Technology during the third quarter worth $7,330,000. Finally, Jupiter Topco LLC acquired a new position in Rackspace Technology in the 2nd quarter valued at about $10,462,000. Institutional investors and hedge funds own 82.48% of the company’s stock.

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.