Rackspace Technology, Inc. (NASDAQ:RXT) Receives Average Rating of “Reduce” from Brokerages

Shares of Rackspace Technology, Inc. (NASDAQ:RXT) have earned a consensus recommendation of “Reduce” from the six analysts that are presently covering the firm, Marketbeat.com reports. Two equities research analysts have rated the stock with a sell rating and four have given a hold rating to the company. The average 12 month price objective among brokerages that have issued a report on the stock in the last year is $1.70.

RXT has been the topic of several recent research reports. Royal Bank Of Canada upped their price objective on Rackspace Technology from $1.75 to $2.50 and gave the stock a “sector perform” rating in a report on Friday, February 27th. Weiss Ratings restated a “sell (d-)” rating on shares of Rackspace Technology in a research report on Thursday, January 22nd.

Insider Activity

In other Rackspace Technology news, CFO Mark A. Marino sold 14,058 shares of the company’s stock in a transaction that occurred on Wednesday, March 18th. The stock was sold at an average price of $1.81, for a total transaction of $25,444.98. Following the sale, the chief financial officer directly owned 2,158,874 shares in the company, valued at $3,907,561.94. This represents a 0.65% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, EVP Dharmendra Kumar Sinha sold 188,123 shares of the firm’s stock in a transaction that occurred on Wednesday, March 18th. The shares were sold at an average price of $1.81, for a total value of $340,502.63. Following the completion of the sale, the executive vice president directly owned 2,276,057 shares of the company’s stock, valued at $4,119,663.17. The trade was a 7.63% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 502,440 shares of company stock worth $867,173 over the last 90 days. Corporate insiders own 2.90% of the company’s stock.

Institutional Trading of Rackspace Technology

Several hedge funds and other institutional investors have recently bought and sold shares of RXT. AustralianSuper Pty Ltd bought a new position in Rackspace Technology during the third quarter valued at $2,276,000. Intech Investment Management LLC boosted its stake in shares of Rackspace Technology by 45.4% during the 2nd quarter. Intech Investment Management LLC now owns 51,692 shares of the company’s stock worth $66,000 after purchasing an additional 16,152 shares during the period. Quadrature Capital Ltd purchased a new position in shares of Rackspace Technology during the 2nd quarter worth about $26,000. Dynamic Technology Lab Private Ltd purchased a new stake in Rackspace Technology in the 1st quarter worth about $113,000. Finally, Brevan Howard Capital Management LP raised its position in Rackspace Technology by 62.9% in the 2nd quarter. Brevan Howard Capital Management LP now owns 85,472 shares of the company’s stock worth $109,000 after purchasing an additional 32,996 shares during the period. Hedge funds and other institutional investors own 82.48% of the company’s stock.

Rackspace Technology Stock Performance

Shares of NASDAQ RXT opened at $1.39 on Wednesday. The company has a market cap of $343.20 million, a P/E ratio of -1.46 and a beta of 1.80. Rackspace Technology has a 52-week low of $0.39 and a 52-week high of $2.74. The firm’s fifty day moving average is $1.24 and its two-hundred day moving average is $1.25.

Rackspace Technology (NASDAQ:RXT) last issued its quarterly earnings data on Thursday, February 26th. The company reported ($0.01) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.04) by $0.03. The firm had revenue of $682.80 million for the quarter, compared to analysts’ expectations of $672.56 million. Rackspace Technology has set its FY 2026 guidance at -0.200–0.15 EPS.

About Rackspace Technology

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.