Rackspace Technology Target of Unusually Large Options Trading (NASDAQ:RXT)

Rackspace Technology, Inc. (NASDAQ:RXT) was the recipient of unusually large options trading on Wednesday. Investors acquired 20,449 call options on the company. This represents an increase of approximately 4,656% compared to the average volume of 430 call options.

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on RXT. Royal Bank Of Canada lowered their target price on Rackspace Technology from $2.00 to $1.75 and set a “sector perform” rating on the stock in a research note on Monday, November 10th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Rackspace Technology in a research report on Thursday, January 22nd. Four equities research analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, Rackspace Technology presently has a consensus rating of “Reduce” and an average target price of $1.51.

Insider Activity

In related news, EVP Dharmendra Kumar Sinha sold 91,151 shares of the stock in a transaction that occurred on Friday, November 28th. The stock was sold at an average price of $1.04, for a total transaction of $94,797.04. Following the completion of the sale, the executive vice president directly owned 2,568,895 shares of the company’s stock, valued at approximately $2,671,650.80. This trade represents a 3.43% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. 2.90% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the business. R Squared Ltd lifted its position 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 worth $35,000 after acquiring an additional 10,707 shares in the last quarter. Engineers Gate Manager LP lifted its holdings in Rackspace Technology by 47.1% during the 2nd quarter. Engineers Gate Manager LP now owns 34,777 shares of the company’s stock worth $45,000 after purchasing an additional 11,141 shares in the last quarter. Alliancebernstein L.P. lifted its holdings in Rackspace Technology by 4.0% during the 3rd quarter. Alliancebernstein L.P. now owns 290,750 shares of the company’s stock worth $410,000 after purchasing an additional 11,300 shares in the last quarter. Creative Planning boosted its stake in Rackspace Technology by 114.2% in the 2nd quarter. Creative Planning now owns 25,715 shares of the company’s stock worth $33,000 after purchasing an additional 13,708 shares during the period. 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 valued at $66,000 after buying an additional 16,152 shares in the last quarter. 82.48% of the stock is currently owned by hedge funds and other institutional investors.

Rackspace Technology Trading Up 211.5%

Shares of RXT stock traded up $0.89 on Wednesday, hitting $1.31. 275,279,873 shares of the stock were exchanged, compared to its average volume of 9,550,363. The firm’s 50 day moving average is $0.84 and its two-hundred day moving average is $1.15. Rackspace Technology has a one year low of $0.39 and a one year high of $3.03. The firm has a market capitalization of $317.88 million, a PE ratio of -1.22 and a beta of 2.18.

About Rackspace Technology

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.