Analysts Set Rackspace Technology, Inc. (NASDAQ:RXT) Target Price at $1.58

Shares of Rackspace Technology, Inc. (NASDAQ:RXT) have earned an average recommendation of “Reduce” from the six ratings firms that are currently covering the stock, Marketbeat Ratings reports. Two investment analysts have rated the stock with a sell recommendation and four have issued a hold recommendation on the company. The average 12-month target price among analysts that have issued ratings on the stock in the last year is $1.5750.

A number of research firms recently commented on RXT. Weiss Ratings reissued a “sell (d-)” rating on shares of Rackspace Technology in a report on Saturday, September 27th. BMO Capital Markets decreased their price objective on shares of Rackspace Technology from $1.75 to $1.40 and set a “market perform” rating on the stock in a report on Tuesday, August 12th. Finally, Wall Street Zen raised shares of Rackspace Technology from a “sell” rating to a “hold” rating in a report on Saturday, September 20th.

Rackspace Technology Stock Up 8.6%

Shares of Rackspace Technology stock opened at $1.51 on Wednesday. Rackspace Technology has a 52-week low of $1.00 and a 52-week high of $3.41. The company’s 50-day simple moving average is $1.32 and its 200-day simple moving average is $1.35. The firm has a market cap of $361.43 million, a price-to-earnings ratio of -0.93 and a beta of 2.09.

Rackspace Technology (NASDAQ:RXT) last issued its quarterly earnings results on Thursday, August 7th. The company reported ($0.06) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.05) by ($0.01). The firm had revenue of $666.30 million for the quarter, compared to analyst estimates of $658.86 million. The firm’s revenue for the quarter was down 2.7% on a year-over-year basis. During the same quarter last year, the business posted ($0.08) EPS. Rackspace Technology has set its Q3 2025 guidance at -0.060–0.040 EPS.

Insider Transactions at Rackspace Technology

In related news, CEO Amar Maletira sold 1,780,619 shares of the business’s stock in a transaction dated Monday, September 15th. The shares were sold at an average price of $1.35, for a total transaction of $2,403,835.65. Following the sale, the chief executive officer owned 4,608,619 shares of the company’s stock, valued at approximately $6,221,635.65. The trade was a 27.87% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Anthony Scott sold 40,000 shares of the business’s stock in a transaction dated Monday, September 8th. The stock was sold at an average price of $1.43, for a total transaction of $57,200.00. Following the sale, the director directly owned 191,045 shares in the company, valued at approximately $273,194.35. This represents a 17.31% decrease in their position. The disclosure for this sale can be found here. 2.90% of the stock is currently owned by insiders.

Institutional Trading of Rackspace Technology

Several institutional investors and hedge funds have recently modified their holdings of the business. Engineers Gate Manager LP lifted its holdings in shares of Rackspace Technology by 47.1% in the second quarter. Engineers Gate Manager LP now owns 34,777 shares of the company’s stock valued at $45,000 after purchasing an additional 11,141 shares in the last quarter. BNP Paribas Financial Markets lifted its stake in shares of Rackspace Technology by 25.4% during the second quarter. BNP Paribas Financial Markets now owns 119,493 shares of the company’s stock valued at $153,000 after buying an additional 24,173 shares during the period. Brevan Howard Capital Management LP lifted its stake in shares of Rackspace Technology by 62.9% during the second quarter. Brevan Howard Capital Management LP now owns 85,472 shares of the company’s stock valued at $109,000 after buying an additional 32,996 shares during the period. Ameriprise Financial Inc. lifted its stake in shares of Rackspace Technology by 9.4% during the second quarter. Ameriprise Financial Inc. now owns 387,182 shares of the company’s stock valued at $496,000 after buying an additional 33,356 shares during the period. Finally, Raymond James Financial Inc. lifted its stake in shares of Rackspace Technology by 15.1% during the second quarter. Raymond James Financial Inc. now owns 443,090 shares of the company’s stock valued at $567,000 after buying an additional 58,180 shares during the period. Hedge funds and other institutional investors own 82.48% of the company’s stock.

About Rackspace Technology

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.