Analysts Set Rackspace Technology, Inc. (NASDAQ:RXT) PT at $1.58

Rackspace Technology, Inc. (NASDAQ:RXT) has been assigned a consensus recommendation of “Reduce” from the six analysts that are covering the stock, MarketBeat reports. Two research analysts have rated the stock with a sell rating and four have given a hold rating to the company. The average 12-month target price among analysts that have issued ratings on the stock in the last year is $1.5750.

A number of equities research analysts recently issued reports on the company. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Rackspace Technology in a research note on Wednesday, October 8th. Wall Street Zen raised Rackspace Technology from a “sell” rating to a “hold” rating in a research note on Saturday, September 20th. Finally, BMO Capital Markets reduced their price target on Rackspace Technology from $1.75 to $1.40 and set a “market perform” rating on the stock in a research note on Tuesday, August 12th.

Insiders Place Their Bets

In other news, Director Anthony Scott sold 40,000 shares of the company’s stock in a transaction on Monday, September 8th. The stock was sold at an average price of $1.43, for a total transaction of $57,200.00. Following the completion of the sale, the director directly owned 191,045 shares in the company, valued at $273,194.35. This represents a 17.31% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, CEO Amar Maletira sold 1,780,619 shares of the company’s stock in a transaction on Monday, September 15th. The stock was sold at an average price of $1.35, for a total value of $2,403,835.65. Following the sale, the chief executive officer owned 4,608,619 shares of the company’s stock, valued at approximately $6,221,635.65. The trade was a 27.87% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Corporate insiders own 2.90% of the company’s stock.

Institutional Trading of Rackspace Technology

Institutional investors and hedge funds have recently made changes to their positions in the company. Russell Investments Group Ltd. increased its holdings in Rackspace Technology by 4,053.5% in the 1st quarter. Russell Investments Group Ltd. now owns 846,112 shares of the company’s stock valued at $1,430,000 after purchasing an additional 825,741 shares in the last quarter. Jacobs Levy Equity Management Inc. increased its holdings in Rackspace Technology by 42.4% in the 1st quarter. Jacobs Levy Equity Management Inc. now owns 1,255,023 shares of the company’s stock valued at $2,121,000 after purchasing an additional 373,875 shares in the last quarter. Geode Capital Management LLC increased its holdings in Rackspace Technology by 17.9% in 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. JPMorgan Chase & Co. increased its holdings in Rackspace Technology by 25.5% in the 2nd quarter. JPMorgan Chase & Co. now owns 1,437,879 shares of the company’s stock valued at $1,840,000 after purchasing an additional 292,249 shares in the last quarter. Finally, Strs Ohio acquired a new stake in Rackspace Technology in the 1st quarter valued at $323,000. 82.48% of the stock is currently owned by institutional investors and hedge funds.

Rackspace Technology Stock Performance

RXT stock opened at $1.60 on Friday. Rackspace Technology has a 1 year low of $1.00 and a 1 year high of $3.41. The stock’s 50 day moving average price is $1.44 and its 200 day moving average price is $1.34. The firm has a market cap of $382.98 million, a P/E ratio of -0.99 and a beta of 2.09.

Rackspace Technology (NASDAQ:RXT) last posted its earnings results on Thursday, August 7th. The company reported ($0.06) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.05) by ($0.01). The company had revenue of $666.30 million during the quarter, compared to analysts’ expectations of $658.86 million. During the same quarter in the prior year, the firm posted ($0.08) earnings per share. The business’s quarterly revenue was down 2.7% compared to the same quarter last year. Rackspace Technology has set its Q3 2025 guidance at -0.060–0.040 EPS.

About Rackspace Technology

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.