Rackspace Technology (NASDAQ:RXT) Stock Price Down 5.1% – Here’s Why

by · The Cerbat Gem

Rackspace Technology, Inc. (NASDAQ:RXT – Get Free Report) was down 5.1% on Monday. The stock traded as low as $2.71 and last traded at $2.6850. Approximately 2,709,365 shares were traded during mid-day trading, a decline of 85% from the average daily volume of 18,161,881 shares. The stock had previously closed at $2.83.

Analyst Upgrades and Downgrades

RXT has been the topic of a number of recent research reports. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Rackspace Technology in a research note on Friday, August 28th. Wall Street Zen cut shares of Rackspace Technology from a “hold” rating to a “sell” rating in a research report on Saturday, August 15th. One investment analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Reduce” and a consensus target price of $4.00.

Get Our Latest Report on Rackspace Technology

Rackspace Technology Price Performance

The business has a 50 day simple moving average of $3.55 and a 200-day simple moving average of $4.02. The stock has a market capitalization of $690.71 million, a price-to-earnings ratio of -4.17 and a beta of 3.10.

Rackspace Technology (NASDAQ:RXT – Get Free Report) last released its quarterly earnings results on Monday, August 10th. The company reported ($0.08) EPS for the quarter, topping analysts’ consensus estimates 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, equities analysts predict that Rackspace Technology, Inc. will post -0.28 earnings per share for the current year.

Insiders Place Their Bets

In other Rackspace Technology news, CFO Mark A. Marino sold 51,373 shares of the firm’s stock in a transaction that occurred on Wednesday, September 2nd. The shares were sold at an average price of $2.95, for a total transaction of $151,550.35. Following the sale, the chief financial officer directly owned 2,865,853 shares in the company, valued at approximately $8,454,266.35. This trade represents a 1.76% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible 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, EVP Dharmendra Sinha sold 107,002 shares of Rackspace Technology stock in a transaction that occurred on Wednesday, September 2nd. The shares were sold at an average price of $2.95, for a total transaction of $315,655.90. Following the completion of the transaction, 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 position. 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 valued at $2,299,799 over the last 90 days. 2.30% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. ABS Direct Equity Fund LLC bought a new position in Rackspace Technology during the 2nd quarter worth about $1,306,000. Engineers Gate Manager LP acquired a new stake in shares of Rackspace Technology in the 2nd quarter valued at about $167,000. NewEdge Advisors LLC raised its stake in shares of Rackspace Technology by 9,566.7% in the 2nd quarter. NewEdge Advisors LLC now owns 29,000 shares of the company’s stock valued at $189,000 after purchasing an additional 28,700 shares during the period. Squarepoint Ops LLC acquired a new stake in shares of Rackspace Technology in the 2nd quarter valued at about $1,839,000. Finally, Corient Private Wealth LP bought a new stake in shares of Rackspace Technology in the second quarter valued at about $297,000. Institutional investors and hedge funds own 82.48% of the company’s stock.

About Rackspace Technology

(Get Free Report)

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.

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