Rackspace Technology (NASDAQ:RXT) Stock Price Down 4.2% – Here’s Why

Rackspace Technology, Inc. (NASDAQ:RXT) traded down 4.2% during mid-day trading on Tuesday . The stock traded as low as $2.51 and last traded at $2.54. 94,339 shares were traded during mid-day trading, a decline of 91% from the average session volume of 1,088,169 shares. The stock had previously closed at $2.65.

Analyst Ratings Changes

Several analysts recently issued reports on the company. Barclays raised their target price on Rackspace Technology from $1.00 to $2.00 and gave the stock an “underweight” rating in a research note on Monday, November 18th. UBS Group lifted their target price on shares of Rackspace Technology from $2.10 to $2.30 and gave the stock a “neutral” rating in a research report on Friday, August 16th. One analyst has rated the stock with a sell rating, four have given a hold rating and one has given a buy rating to the stock. According to MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $2.47.

Rackspace Technology Trading Down 4.2 %

The stock has a market capitalization of $578.03 million, a price-to-earnings ratio of -0.76 and a beta of 1.99. The company has a fifty day moving average of $2.57 and a two-hundred day moving average of $2.44.

Rackspace Technology (NASDAQ:RXT) last released its earnings results on Tuesday, November 12th. The company reported ($0.04) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.07) by $0.03. The firm had revenue of $675.80 million for the quarter, compared to the consensus estimate of $675.14 million. The company’s revenue was down 7.7% compared to the same quarter last year. During the same quarter in the previous year, the firm earned ($0.04) EPS. As a group, sell-side analysts predict that Rackspace Technology, Inc. will post -0.27 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CEO Amar Maletira sold 82,552 shares of the business’s stock in a transaction on Wednesday, October 2nd. The stock was sold at an average price of $2.37, for a total transaction of $195,648.24. Following the sale, the chief executive officer now directly owns 4,983,984 shares in the company, valued at approximately $11,812,042.08. The trade was a 1.63 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 2.00% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Rackspace Technology

Several hedge funds and other institutional investors have recently added to or reduced their stakes in RXT. Renaissance Technologies LLC lifted its position in Rackspace Technology by 23.7% in the second quarter. Renaissance Technologies LLC now owns 1,339,200 shares of the company’s stock worth $3,991,000 after buying an additional 256,900 shares during the last quarter. Jacobs Levy Equity Management Inc. lifted its position in Rackspace Technology by 139.4% during the 3rd quarter. Jacobs Levy Equity Management Inc. now owns 814,624 shares of the company’s stock worth $1,996,000 after acquiring an additional 474,299 shares during the period. Jane Street Group LLC raised its holdings in shares of Rackspace Technology by 27.4% during the third quarter. Jane Street Group LLC now owns 773,454 shares of the company’s stock worth $1,895,000 after purchasing an additional 166,528 shares during the last quarter. Charles Schwab Investment Management Inc. grew its position in Rackspace Technology by 7.6% during the third quarter. Charles Schwab Investment Management Inc. now owns 590,724 shares of the company’s stock valued at $1,447,000 after buying an additional 41,697 shares during the period. Finally, ClariVest Asset Management LLC raised its position in Rackspace Technology by 2.8% during the second quarter. ClariVest Asset Management LLC now owns 379,721 shares of the company’s stock worth $1,132,000 after acquiring an additional 10,281 shares during the period. 82.48% of the stock is owned by institutional investors.

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.