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

Rackspace Technology, Inc. (NASDAQ:RXT) has been assigned an average recommendation of “Reduce” from the six research firms that are presently covering the stock, Marketbeat reports. Two investment analysts have rated the stock with a sell recommendation and four have issued a hold recommendation on the company. The average 1-year price objective among brokers that have issued ratings on the stock in the last year is $1.5125.

A number of brokerages have recently commented on RXT. Wall Street Zen upgraded Rackspace Technology from a “sell” rating to a “hold” rating in a report on Saturday, September 20th. Royal Bank Of Canada lowered their price target on Rackspace Technology from $2.00 to $1.75 and set a “sector perform” rating for the company in a research report on Monday, November 10th. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Rackspace Technology in a research note on Wednesday, October 8th.

Insider Activity at Rackspace Technology

In related news, EVP Dharmendra Kumar Sinha sold 91,151 shares of Rackspace Technology stock in a transaction dated Friday, November 28th. The shares were sold at an average price of $1.04, for a total transaction of $94,797.04. Following the completion of the transaction, the executive vice president directly owned 2,568,895 shares of the company’s stock, valued at approximately $2,671,650.80. The trade was a 3.43% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 2.90% of the company’s stock.

Institutional Investors Weigh In On Rackspace Technology

Several large investors have recently added to or reduced their stakes in RXT. AQR Capital Management LLC increased its position in shares of Rackspace Technology by 228.6% during the first quarter. AQR Capital Management LLC now owns 264,565 shares of the company’s stock worth $447,000 after acquiring an additional 184,058 shares during the period. Jacobs Levy Equity Management Inc. grew its stake in Rackspace Technology by 42.4% in the first quarter. Jacobs Levy Equity Management Inc. now owns 1,255,023 shares of the company’s stock worth $2,121,000 after purchasing an additional 373,875 shares in the last quarter. Dynamic Technology Lab Private Ltd purchased a new position in Rackspace Technology during the 1st quarter worth $113,000. Strs Ohio purchased a new position in Rackspace Technology during the 1st quarter worth $323,000. Finally, Geode Capital Management LLC raised its position in Rackspace Technology by 17.9% during the 2nd quarter. Geode Capital Management LLC now owns 2,064,549 shares of the company’s stock valued at $2,643,000 after purchasing an additional 313,636 shares in the last quarter. 82.48% of the stock is owned by hedge funds and other institutional investors.

Rackspace Technology Trading Up 2.0%

Shares of NASDAQ RXT opened at $1.02 on Friday. The firm’s 50-day moving average price is $1.10 and its 200-day moving average price is $1.28. The stock has a market capitalization of $248.46 million, a price-to-earnings ratio of -0.94 and a beta of 2.13. Rackspace Technology has a 12-month low of $0.96 and a 12-month high of $3.03.

Rackspace Technology (NASDAQ:RXT) last issued its quarterly earnings data on Thursday, November 6th. The company reported ($0.05) earnings per share for the quarter, hitting the consensus estimate of ($0.05). The company had revenue of $671.20 million for the quarter, compared to the consensus estimate of $666.83 million. During the same period in the previous year, the firm earned ($0.04) earnings per share. The company’s revenue was down .7% compared to the same quarter last year. Rackspace Technology has set its Q4 2025 guidance at -0.050–0.030 EPS.

Rackspace Technology Company Profile

Rackspace Technology (NASDAQ: RXT) is a leading provider of managed multi-cloud solutions and services, specializing in the deployment, management and optimization of public and private cloud environments. The company helps organizations design and operate applications across platforms such as Amazon Web Services (AWS), Microsoft Azure, Google Cloud and its own private cloud infrastructure. Rackspace’s core offerings include cloud migration, application modernization, data protection, security services and 24x7x365 operational support.

Beyond cloud hosting, Rackspace offers a range of professional services designed to accelerate digital transformation initiatives.