Rackspace Technology, Inc. (NASDAQ:RXT) Receives $1.51 Consensus Target Price from Brokerages

Rackspace Technology, Inc. (NASDAQ:RXT) has been assigned a consensus rating of “Reduce” from the six analysts that are presently covering the firm, MarketBeat reports. Two analysts have rated the stock with a sell recommendation and four have given a hold recommendation to the company. The average 12 month price objective among analysts that have issued ratings on the stock in the last year is $1.5125.

Several equities research analysts have commented on RXT shares. Weiss Ratings restated a “sell (d-)” rating on shares of Rackspace Technology in a research note on Wednesday, October 8th. BMO Capital Markets decreased their target price on Rackspace Technology from $1.75 to $1.40 and set a “market perform” rating for the company in a report on Tuesday, August 12th. Wall Street Zen upgraded shares of Rackspace Technology from a “sell” rating to a “hold” rating in a report on Saturday, September 20th. Finally, Royal Bank Of Canada reduced their price target on shares of Rackspace Technology from $2.00 to $1.75 and set a “sector perform” rating on the stock in a research report on Monday, November 10th.

Rackspace Technology Stock Down 1.0%

Shares of RXT opened at $1.03 on Thursday. Rackspace Technology has a fifty-two week low of $1.00 and a fifty-two week high of $3.03. The company’s fifty day moving average is $1.39 and its two-hundred day moving average is $1.32. The firm has a market cap of $250.90 million, a PE ratio of -0.95 and a beta of 2.07.

Rackspace Technology (NASDAQ:RXT) last released its quarterly earnings data on Thursday, November 6th. The company reported ($0.05) EPS for the quarter, hitting analysts’ consensus estimates of ($0.05). The firm had revenue of $671.20 million for the quarter, compared to analyst estimates of $666.83 million. During the same quarter in the previous year, the company earned ($0.04) earnings per share. The company’s quarterly revenue was down .7% on a year-over-year basis. Rackspace Technology has set its Q4 2025 guidance at -0.050–0.030 EPS.

Insider Buying and Selling at Rackspace Technology

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

Institutional Investors Weigh In On Rackspace Technology

Hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. lifted its position in Rackspace Technology by 6.1% during the 3rd quarter. Vanguard Group Inc. now owns 6,288,882 shares of the company’s stock worth $8,867,000 after acquiring an additional 359,087 shares in the last quarter. Geode Capital Management LLC grew its position in Rackspace Technology by 17.9% in the second quarter. Geode Capital Management LLC now owns 2,064,549 shares of the company’s stock valued at $2,643,000 after acquiring an additional 313,636 shares in the last quarter. AustralianSuper Pty Ltd purchased a new stake in shares of Rackspace Technology during the third quarter valued at approximately $2,276,000. JPMorgan Chase & Co. lifted its position in shares of Rackspace Technology by 1.8% during the third quarter. JPMorgan Chase & Co. now owns 1,464,389 shares of the company’s stock worth $2,065,000 after purchasing an additional 26,510 shares in the last quarter. Finally, Jacobs Levy Equity Management Inc. lifted its position in shares of Rackspace Technology by 42.4% during the first quarter. Jacobs Levy Equity Management Inc. now owns 1,255,023 shares of the company’s stock worth $2,121,000 after purchasing an additional 373,875 shares in the last quarter. 82.48% of the stock is currently owned by hedge funds and other 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.