Rackspace Technology (NASDAQ:RXT) Trading Down 6.2% – Here’s Why

Rackspace Technology, Inc. (NASDAQ:RXT)’s share price was down 6.2% during trading on Wednesday . The company traded as low as $4.61 and last traded at $4.6630. Approximately 11,556,970 shares traded hands during mid-day trading, a decline of 53% from the average daily volume of 24,341,459 shares. The stock had previously closed at $4.97.

Wall Street Analysts Forecast Growth

Separately, Royal Bank Of Canada increased their price target on Rackspace Technology from $1.75 to $2.50 and gave the company a “sector perform” rating in a research note on Friday, February 27th. Three analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Rackspace Technology currently has a consensus rating of “Reduce” and an average target price of $1.95.

Rackspace Technology Stock Down 7.0%

The stock has a market capitalization of $1.15 billion, a PE ratio of -7.60 and a beta of 2.23. The firm has a 50 day moving average price of $2.41 and a 200-day moving average price of $1.57.

Rackspace Technology (NASDAQ:RXT) last announced its quarterly earnings data on Thursday, May 7th. The company reported ($0.06) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.03) by ($0.03). The firm had revenue of $678.10 million during the quarter, compared to analysts’ expectations of $660.83 million. Rackspace Technology has set its FY 2026 guidance at -0.200–0.150 EPS. Equities analysts expect that Rackspace Technology, Inc. will post -0.18 earnings per share for the current fiscal year.

Insider Activity at Rackspace Technology

In related news, EVP Dharmendra Kumar Sinha sold 188,123 shares of Rackspace Technology stock in a transaction that occurred on Wednesday, March 18th. The stock was sold at an average price of $1.81, for a total transaction of $340,502.63. Following the completion of the transaction, the executive vice president directly owned 2,276,057 shares in the company, valued at approximately $4,119,663.17. This trade represents a 7.63% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Mark A. Marino sold 20,183 shares of Rackspace Technology stock in a transaction that occurred on Monday, March 2nd. The shares were sold at an average price of $1.81, for a total value of $36,531.23. Following the transaction, the chief financial officer owned 2,172,932 shares of the company’s stock, valued at approximately $3,933,006.92. This represents a 0.92% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 267,757 shares of company stock valued at $484,640. 2.90% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the stock. AustralianSuper Pty Ltd purchased a new position in Rackspace Technology during the third quarter valued at approximately $2,276,000. Bank of New York Mellon Corp grew its holdings in Rackspace Technology by 35.4% in the first quarter. Bank of New York Mellon Corp now owns 239,954 shares of the company’s stock valued at $235,000 after purchasing an additional 62,768 shares during the period. Renaissance Technologies LLC grew its holdings in Rackspace Technology by 14.0% in the first quarter. Renaissance Technologies LLC now owns 2,041,600 shares of the company’s stock valued at $2,000,000 after purchasing an additional 250,700 shares during the period. Janus Henderson Group PLC grew its holdings in Rackspace Technology by 179.7% in the first quarter. Janus Henderson Group PLC now owns 2,937,670 shares of the company’s stock valued at $2,878,000 after purchasing an additional 1,887,317 shares during the period. Finally, State of Wyoming acquired a new stake in Rackspace Technology in the first quarter valued at approximately $35,000. 82.48% of the stock is currently owned by hedge funds and other institutional investors.

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.