Rackspace Technology (NASDAQ:RXT) Stock Price Up 6.2% – Here’s Why

Rackspace Technology, Inc. (NASDAQ:RXT)’s share price traded up 6.2% during trading on Friday. The company traded as high as $3.84 and last traded at $3.8450. 805,112 shares traded hands during trading, a decline of 96% from the average session volume of 18,552,855 shares. The stock had previously closed at $3.62.

Analyst Ratings Changes

A number of research analysts have recently issued reports on the stock. Wall Street Zen lowered shares of Rackspace Technology from a “hold” rating to a “sell” rating in a research note on Saturday, August 15th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Rackspace Technology in a report on Friday, August 28th. Finally, Royal Bank Of Canada boosted their target price on shares of Rackspace Technology from $2.50 to $4.00 and gave the stock a “sector perform” rating in a research report on Wednesday, June 17th. One investment analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Reduce” and a consensus price target of $4.00.

Rackspace Technology Stock Up 7.9%

The stock has a fifty day moving average price of $3.79 and a two-hundred day moving average price of $3.90. The company has a market capitalization of $995.28 million, a price-to-earnings ratio of -6.01 and a beta of 3.10.

Rackspace Technology (NASDAQ:RXT) last posted its quarterly earnings data on Monday, August 10th. The company reported ($0.08) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.09) by $0.01. The business had revenue of $670.10 million for the quarter, compared to analyst estimates of $646.00 million. As a group, research analysts forecast that Rackspace Technology, Inc. will post -0.28 earnings per share for the current fiscal year.

Insider Transactions at Rackspace Technology

In other Rackspace Technology news, Director Anthony Scott sold 48,780 shares of the business’s stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $4.25, for a total transaction of $207,315.00. Following the completion of the sale, the director directly owned 180,215 shares in the company, valued at $765,913.75. The trade was a 21.30% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Gajakarnan Kandiah sold 498,728 shares of the stock in a transaction on Friday, September 4th. The shares were sold at an average price of $3.21, for a total value of $1,600,916.88. Following the completion of the sale, the chief executive officer owned 3,684,955 shares of the company’s stock, valued at approximately $11,828,705.55. This represents a 11.92% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 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. Insiders have sold a total of 714,141 shares of company stock worth $2,299,799 over the last ninety days. 2.30% of the stock is owned by insiders.

Hedge Funds Weigh In On Rackspace Technology

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Legal & General Group Plc acquired a new stake in shares of Rackspace Technology during the second quarter valued at about $58,000. Quantbot Technologies LP acquired a new stake in Rackspace Technology during the 2nd quarter valued at approximately $63,000. Allworth Financial LP purchased a new stake in Rackspace Technology during the 2nd quarter worth approximately $66,000. Strategic Investment Solutions Inc. IL acquired a new position in shares of Rackspace Technology in the 2nd quarter valued at approximately $67,000. Finally, Wealthcare Advisory Partners LLC acquired a new stake in shares of Rackspace Technology during the second quarter worth approximately $72,000. 82.48% of the stock is owned by institutional investors and hedge funds.

About Rackspace Technology

Rackspace Technology, Inc is a technology services company that helps organizations design, build, operate and modernize cloud-based IT environments. The company supports public, private and hybrid cloud infrastructures, working with major cloud platforms such as Amazon Web Services, Microsoft Azure and Google Cloud.

Its services include managed cloud operations, cloud migration and optimization, application modernization, data and artificial intelligence solutions, cybersecurity, professional services and dedicated hosting.