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

Shares of Rackspace Technology, Inc. (NASDAQ:RXT) have earned a consensus recommendation of “Reduce” from the six brokerages that are presently covering the firm, MarketBeat reports. Two research 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 brokerages that have updated their coverage on the stock in the last year is $1.70.

Several research analysts recently commented on RXT shares. Royal Bank Of Canada raised their price target on shares of Rackspace Technology from $1.75 to $2.50 and gave the stock a “sector perform” rating in a research note on Friday, February 27th. Weiss Ratings reissued a “sell (d-)” rating on shares of Rackspace Technology in a research report on Thursday, January 22nd.

Insider Activity at Rackspace Technology

In other Rackspace Technology news, CFO Mark A. Marino sold 14,058 shares of the firm’s stock in a transaction 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 transaction, the chief financial officer directly owned 2,158,874 shares in the company, valued at $3,907,561.94. This trade represents a 0.65% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, EVP Dharmendra Kumar Sinha sold 188,123 shares of Rackspace Technology stock in a transaction 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 sale, the executive vice president directly owned 2,276,057 shares of the company’s stock, valued at approximately $4,119,663.17. This trade represents a 7.63% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 502,440 shares of company stock valued at $867,173 in the last ninety days. Insiders own 2.90% of the company’s stock.

Hedge Funds Weigh In On Rackspace Technology

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. R Squared Ltd increased its stake in shares of Rackspace Technology by 74.3% during the third quarter. R Squared Ltd now owns 25,127 shares of the company’s stock valued at $35,000 after buying an additional 10,707 shares during the period. Engineers Gate Manager LP lifted its stake in Rackspace Technology by 47.1% in the second quarter. Engineers Gate Manager LP now owns 34,777 shares of the company’s stock worth $45,000 after acquiring an additional 11,141 shares during the period. Alliancebernstein L.P. lifted its stake in Rackspace Technology by 4.0% in the third quarter. Alliancebernstein L.P. now owns 290,750 shares of the company’s stock worth $410,000 after acquiring an additional 11,300 shares during the period. Creative Planning grew its holdings in Rackspace Technology by 114.2% during the 2nd quarter. Creative Planning now owns 25,715 shares of the company’s stock worth $33,000 after acquiring an additional 13,708 shares in the last quarter. Finally, Intech Investment Management LLC grew its holdings in 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 acquiring an additional 16,152 shares in the last quarter. Institutional investors own 82.48% of the company’s stock.

Rackspace Technology Stock Down 9.2%

Shares of Rackspace Technology stock opened at $1.39 on Wednesday. The stock’s fifty day moving average is $1.24 and its two-hundred day moving average is $1.25. The company has a market capitalization of $343.20 million, a PE 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.

Rackspace Technology (NASDAQ:RXT) last released its earnings results on Thursday, February 26th. The company reported ($0.01) earnings per share for the quarter, topping the consensus estimate of ($0.04) by $0.03. The business had revenue of $682.80 million for the quarter, compared to the consensus estimate of $672.56 million. Rackspace Technology has set its FY 2026 guidance at -0.200–0.15 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.