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

Rackspace Technology, Inc. (NASDAQ:RXT) has earned an average rating of “Hold” from the eight analysts that are presently covering the company, MarketBeat Ratings reports. Two analysts have rated the stock with a sell recommendation, four have issued a hold recommendation and two have assigned a buy recommendation to the company. The average 1-year target price among analysts that have issued a report on the stock in the last year is $2.31.

RXT has been the topic of a number of research reports. Raymond James reduced their target price on shares of Rackspace Technology from $3.50 to $3.00 and set an “outperform” rating on the stock in a report on Wednesday, March 13th. Royal Bank of Canada restated a “sector perform” rating and issued a $3.00 target price on shares of Rackspace Technology in a report on Wednesday, March 13th. Evercore ISI reduced their target price on shares of Rackspace Technology from $3.00 to $2.00 and set an “in-line” rating on the stock in a report on Wednesday, March 13th. Finally, BMO Capital Markets boosted their target price on shares of Rackspace Technology from $1.50 to $2.50 and gave the stock a “market perform” rating in a report on Wednesday, March 13th.

Rackspace Technology Stock Up 0.6 %

NASDAQ RXT opened at $1.69 on Friday. The firm has a market cap of $371.39 million, a price-to-earnings ratio of -0.43 and a beta of 1.94. The business has a 50-day moving average price of $1.79 and a 200-day moving average price of $1.68. Rackspace Technology has a twelve month low of $1.05 and a twelve month high of $3.10.

Rackspace Technology (NASDAQ:RXT) last posted its earnings results on Tuesday, March 12th. The company reported ($0.03) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.04) by $0.01. The firm had revenue of $720.00 million during the quarter, compared to analyst estimates of $714.74 million. Rackspace Technology had a negative net margin of 28.33% and a negative return on equity of 10.18%. Rackspace Technology’s revenue for the quarter was down 8.5% compared to the same quarter last year. During the same period last year, the firm posted $0.06 earnings per share. Research analysts expect that Rackspace Technology will post -0.38 EPS for the current fiscal year.

Insider Activity at Rackspace Technology

In related news, EVP Brian Lillie sold 139,701 shares of the firm’s stock in a transaction dated Thursday, January 25th. The shares were sold at an average price of $1.62, for a total value of $226,315.62. Following the transaction, the executive vice president now owns 1,608,258 shares of the company’s stock, valued at approximately $2,605,377.96. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. In related news, EVP Brian Lillie sold 139,701 shares of the firm’s stock in a transaction dated Thursday, January 25th. The shares were sold at an average price of $1.62, for a total value of $226,315.62. Following the transaction, the executive vice president now owns 1,608,258 shares of the company’s stock, valued at approximately $2,605,377.96. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, CEO Amar Maletira sold 37,446 shares of the firm’s stock in a transaction dated Tuesday, February 20th. The stock was sold at an average price of $1.92, for a total transaction of $71,896.32. Following the completion of the transaction, the chief executive officer now directly owns 4,638,423 shares in the company, valued at approximately $8,905,772.16. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 189,463 shares of company stock worth $318,164. Insiders own 1.00% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. ClariVest Asset Management LLC purchased a new position in Rackspace Technology during the 3rd quarter valued at about $846,000. Charles Schwab Investment Management Inc. increased its position in Rackspace Technology by 32.0% during the 3rd quarter. Charles Schwab Investment Management Inc. now owns 1,868,417 shares of the company’s stock valued at $4,391,000 after purchasing an additional 452,862 shares during the period. Shell Asset Management Co. purchased a new position in Rackspace Technology during the 3rd quarter valued at about $257,000. Fuller & Thaler Asset Management Inc. purchased a new position in Rackspace Technology during the 3rd quarter valued at about $2,416,000. Finally, Acadian Asset Management LLC purchased a new position in Rackspace Technology during the 3rd quarter valued at about $69,000. Hedge funds and other institutional investors own 82.48% of the company’s stock.

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.