Federated Hermes Inc. Acquires 15,803 Shares of Rackspace Technology, Inc. (NASDAQ:RXT)

Federated Hermes Inc. lifted its holdings in shares of Rackspace Technology, Inc. (NASDAQ:RXT) by 2.1% during the 4th quarter, according to its most recent disclosure with the SEC. The fund owned 757,609 shares of the company’s stock after purchasing an additional 15,803 shares during the period. Federated Hermes Inc.’s holdings in Rackspace Technology were worth $1,515,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors also recently made changes to their positions in RXT. SG Americas Securities LLC acquired a new position in Rackspace Technology during the 3rd quarter worth about $66,000. Allspring Global Investments Holdings LLC raised its stake in shares of Rackspace Technology by 238.7% in the third quarter. Allspring Global Investments Holdings LLC now owns 16,480 shares of the company’s stock worth $39,000 after acquiring an additional 11,614 shares during the last quarter. Charles Schwab Investment Management Inc. lifted its position in shares of Rackspace Technology by 32.0% during the third quarter. Charles Schwab Investment Management Inc. now owns 1,868,417 shares of the company’s stock worth $4,391,000 after purchasing an additional 452,862 shares in the last quarter. Shell Asset Management Co. bought a new stake in shares of Rackspace Technology during the third quarter valued at approximately $257,000. Finally, ClariVest Asset Management LLC acquired a new stake in shares of Rackspace Technology in the third quarter valued at approximately $846,000. 82.48% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity at Rackspace Technology

In related news, CEO Amar Maletira sold 37,446 shares of the firm’s stock in a transaction on Tuesday, February 20th. The stock was sold at an average price of $1.92, for a total transaction of $71,896.32. Following the sale, the chief executive officer now owns 4,638,423 shares of the company’s stock, valued at approximately $8,905,772.16. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 1.00% of the company’s stock.

Rackspace Technology Price Performance

Shares of Rackspace Technology stock opened at $1.75 on Tuesday. The business has a fifty day simple moving average of $1.76 and a 200 day simple moving average of $1.65. The stock has a market cap of $384.58 million, a PE ratio of -0.45 and a beta of 1.94. Rackspace Technology, Inc. has a 12 month low of $1.05 and a 12 month high of $3.10.

Rackspace Technology (NASDAQ:RXT) last posted its earnings results on Tuesday, March 12th. The company reported ($0.03) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.04) by $0.01. The company had revenue of $720.00 million during the quarter, compared to analyst estimates of $714.74 million. Rackspace Technology had a negative return on equity of 10.18% and a negative net margin of 28.33%. The company’s revenue for the quarter was down 8.5% compared to the same quarter last year. During the same period in the previous year, the company earned $0.06 EPS. Analysts expect that Rackspace Technology, Inc. will post -0.38 EPS for the current fiscal year.

Analysts Set New Price Targets

Several research firms have issued reports on RXT. Royal Bank of Canada reaffirmed a “sector perform” rating and set a $3.00 price objective on shares of Rackspace Technology in a report on Wednesday, March 13th. BMO Capital Markets upped their price target on Rackspace Technology from $1.50 to $2.50 and gave the company a “market perform” rating in a research note on Wednesday, March 13th. Raymond James lowered their price objective on Rackspace Technology from $3.50 to $3.00 and set an “outperform” rating for the company in a research report on Wednesday, March 13th. Finally, Evercore ISI cut their target price on shares of Rackspace Technology from $3.00 to $2.00 and set an “in-line” rating on the stock in a research report on Wednesday, March 13th. Two investment analysts have rated the stock with a sell rating, four have given a hold rating and two have given a buy rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $2.31.

Rackspace Technology Profile

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