Insider Selling: Rackspace Technology (NASDAQ:RXT) CFO Sells 48,099 Shares of Stock

Rackspace Technology, Inc. (NASDAQ:RXT) CFO Mark Marino sold 48,099 shares of the company’s stock in a transaction that occurred on Thursday, June 4th. The shares were sold at an average price of $5.56, for a total value of $267,430.44. Following the completion of the sale, the chief financial officer owned 3,370,431 shares of the company’s stock, valued at $18,739,596.36. This trade represents a 1.41% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Rackspace Technology Stock Performance

Shares of RXT stock traded up $0.38 during trading hours on Thursday, reaching $5.59. The company had a trading volume of 12,460,479 shares, compared to its average volume of 42,670,708. The stock has a fifty day moving average of $2.90 and a 200-day moving average of $1.76. The company has a market capitalization of $1.39 billion, a price-to-earnings ratio of -9.16 and a beta of 3.03. Rackspace Technology, Inc. has a 12-month low of $0.39 and a 12-month high of $7.65.

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

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Abel Hall LLC acquired a new position in Rackspace Technology in the first quarter valued at approximately $30,000. Savant Capital LLC acquired a new position in Rackspace Technology in the third quarter valued at approximately $33,000. Creative Planning lifted its holdings in Rackspace Technology by 114.2% in the second quarter. Creative Planning now owns 25,715 shares of the company’s stock valued at $33,000 after acquiring an additional 13,708 shares during the last quarter. SG Americas Securities LLC acquired a new position in Rackspace Technology in the first quarter valued at approximately $34,000. Finally, Jump Financial LLC acquired a new position in Rackspace Technology in the fourth quarter valued at approximately $34,000. 82.48% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of equities research analysts have recently issued reports on RXT shares. Weiss Ratings restated a “sell (d-)” rating on shares of Rackspace Technology in a research report on Tuesday. Royal Bank Of Canada upped their price target on Rackspace Technology from $1.75 to $2.50 and gave the company a “sector perform” rating in a research report on Friday, February 27th. Two analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Reduce” and a consensus price target of $1.95.

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.