Rackspace Technology, Inc. (NASDAQ:RXT) Given Consensus Recommendation of “Reduce” by Brokerages

Rackspace Technology, Inc. (NASDAQ:RXT) has been assigned a consensus recommendation of “Reduce” from the six research firms that are currently covering the firm, Marketbeat.com reports. Two analysts have rated the stock with a sell rating and four have assigned a hold rating to the company. The average 1 year price objective among analysts that have issued a report on the stock in the last year is $1.5750.

Several analysts recently weighed in on RXT shares. Wall Street Zen raised shares of Rackspace Technology from a “sell” rating to a “hold” rating in a report on Saturday, September 20th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Rackspace Technology in a research note on Saturday. Finally, BMO Capital Markets dropped their price target on shares of Rackspace Technology from $1.75 to $1.40 and set a “market perform” rating on the stock in a research note on Tuesday, August 12th.

Rackspace Technology Stock Down 3.8%

Shares of NASDAQ:RXT opened at $1.76 on Friday. The firm’s 50 day moving average price is $1.40 and its 200 day moving average price is $1.33. The stock has a market cap of $421.27 million, a price-to-earnings ratio of -1.09 and a beta of 2.09. Rackspace Technology has a fifty-two week low of $1.00 and a fifty-two week high of $3.41.

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

Insider Activity at Rackspace Technology

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

Institutional Investors Weigh In On Rackspace Technology

Several hedge funds have recently modified their holdings of RXT. Cerity Partners LLC purchased a new position in Rackspace Technology in the first quarter worth $26,000. Quadrature Capital Ltd purchased a new position in shares of Rackspace Technology in the second quarter valued at $26,000. Creative Planning increased its position in shares of Rackspace Technology by 114.2% in the second quarter. Creative Planning now owns 25,715 shares of the company’s stock valued at $33,000 after buying an additional 13,708 shares in the last quarter. Jump Financial LLC purchased a new position in shares of Rackspace Technology in the first quarter valued at $40,000. Finally, Engineers Gate Manager LP increased its position in Rackspace Technology by 47.1% during the 2nd quarter. Engineers Gate Manager LP now owns 34,777 shares of the company’s stock worth $45,000 after purchasing an additional 11,141 shares in the last quarter. 82.48% of the stock is owned by institutional investors and hedge funds.

Rackspace Technology Company 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.