Rackspace Technology (NASDAQ:RXT) Coverage Initiated by Analysts at UBS Group

UBS Group initiated coverage on shares of Rackspace Technology (NASDAQ:RXT) in a research note released on Tuesday, Marketbeat reports. The firm issued a neutral rating and a $1.40 price objective on the stock.

Several other analysts have also issued reports on the stock. Deutsche Bank Aktiengesellschaft raised their price target on shares of Rackspace Technology from $1.50 to $2.50 in a research report on Thursday, August 10th. Barclays decreased their price target on shares of Rackspace Technology from $2.00 to $1.00 and set an underweight rating on the stock in a research report on Monday, October 23rd. Credit Suisse Group raised their price target on shares of Rackspace Technology from $3.50 to $4.15 and gave the stock an outperform rating in a research report on Monday, August 7th. Citigroup lowered shares of Rackspace Technology from a neutral rating to a sell rating and raised their price target for the stock from $1.25 to $1.50 in a research report on Tuesday, July 25th. Finally, BMO Capital Markets raised their price target on shares of Rackspace Technology from $1.50 to $2.50 and gave the stock a market perform rating in a research report on Wednesday, August 9th. Two investment analysts have rated the stock with a sell rating, three have issued a hold rating and two have issued a buy rating to the stock. According to MarketBeat, Rackspace Technology has a consensus rating of Hold and an average target price of $2.57.

Rackspace Technology Stock Performance

NASDAQ:RXT opened at $1.40 on Tuesday. Rackspace Technology has a 1 year low of $1.05 and a 1 year high of $6.07. The firm’s fifty day simple moving average is $1.74 and its 200 day simple moving average is $1.88. The company has a current ratio of 1.18, a quick ratio of 1.18 and a debt-to-equity ratio of 111.44. The firm has a market capitalization of $302.25 million, a PE ratio of -0.22 and a beta of 1.77.

Rackspace Technology (NASDAQ:RXT) last posted its earnings results on Tuesday, August 8th. The company reported ($0.06) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.08) by $0.02. Rackspace Technology had a negative net margin of 44.32% and a positive return on equity of 4.08%. The business had revenue of $746.30 million for the quarter, compared to analyst estimates of $730.44 million. During the same period last year, the business posted $0.17 EPS. Rackspace Technology’s revenue was down 3.4% compared to the same quarter last year. On average, sell-side analysts anticipate that Rackspace Technology will post -0.18 EPS for the current year.

Insider Activity

In other Rackspace Technology news, Director Anthony C. Roberts bought 22,350 shares of the firm’s stock in a transaction dated Tuesday, August 15th. The shares were acquired at an average cost of $2.23 per share, for a total transaction of $49,840.50. Following the transaction, the director now owns 139,232 shares in the company, valued at $310,487.36. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 1.00% of the stock is owned by company insiders.

Hedge Funds Weigh In On Rackspace Technology

Several institutional investors have recently added to or reduced their stakes in RXT. Apollo Management Holdings L.P. bought a new position in Rackspace Technology during the 1st quarter valued at about $243,665,000. Millennium Management LLC bought a new position in Rackspace Technology during the 4th quarter valued at about $8,901,000. Vanguard Group Inc. lifted its holdings in Rackspace Technology by 54.2% during the 1st quarter. Vanguard Group Inc. now owns 5,291,508 shares of the company’s stock valued at $59,054,000 after purchasing an additional 1,860,141 shares during the last quarter. Legal & General Group Plc lifted its holdings in Rackspace Technology by 63.3% during the 4th quarter. Legal & General Group Plc now owns 4,726,106 shares of the company’s stock valued at $13,942,000 after purchasing an additional 1,832,833 shares during the last quarter. Finally, BlackRock Inc. lifted its holdings in Rackspace Technology by 33.1% during the 2nd quarter. BlackRock Inc. now owns 5,789,497 shares of the company’s stock valued at $15,747,000 after purchasing an additional 1,439,285 shares during the last quarter. 82.48% of the stock is owned by institutional investors.

Rackspace Technology Company Profile

Rackspace Technology, Inc operates as a multi cloud technology services company the Americas, Europe, the Middle East, Africa, and The Asia-Pacific region. It operates through two segments, Multicloud Services and Apps & Cross Platform. The Multicloud Services segment provides public and private cloud managed services, which allow customers to determine, manage, and optimize the right infrastructure, platforms, and services; and professional services related to designing and building multi cloud solutions and cloud-native applications.