Rackspace Technology (NASDAQ:RXT) Raised to “Hold” at Wall Street Zen

Wall Street Zen upgraded shares of Rackspace Technology (NASDAQ:RXT) from a sell rating to a hold rating in a research note issued to investors on Saturday.

Other equities analysts have also issued reports about the stock. BMO Capital Markets cut their target price on shares of Rackspace Technology from $1.75 to $1.40 and set a “market perform” rating for the company in a report on Tuesday, August 12th. Raymond James Financial reaffirmed a “market perform” rating on shares of Rackspace Technology in a report on Monday, June 2nd. Four investment analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Rackspace Technology currently has a consensus rating of “Reduce” and an average price target of $1.58.

Rackspace Technology Price Performance

RXT stock opened at $1.44 on Friday. Rackspace Technology has a 52 week low of $1.00 and a 52 week high of $3.41. The stock has a market capitalization of $344.68 million, a PE ratio of -0.89 and a beta of 2.06. The firm has a 50 day moving average of $1.32 and a 200 day moving average of $1.38.

Rackspace Technology (NASDAQ:RXT) last posted its quarterly 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 business had revenue of $666.30 million for the quarter, compared to the consensus estimate of $658.86 million. During the same period in the previous year, the company earned ($0.08) earnings per share. The company’s 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.

Insider Transactions at Rackspace Technology

In other Rackspace Technology news, Director Anthony Scott sold 40,000 shares of the business’s stock in a transaction dated Monday, September 8th. The shares were sold at an average price of $1.43, for a total transaction of $57,200.00. Following 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 ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Amar Maletira sold 1,780,619 shares of the business’s stock in a transaction dated Monday, September 15th. The stock was sold at an average price of $1.35, for a total transaction of $2,403,835.65. Following the sale, the chief executive officer owned 4,608,619 shares in the company, valued at $6,221,635.65. This trade represents a 27.87% decrease in their ownership of the stock. The disclosure for this sale can be found here. 2.90% of the stock is owned by corporate insiders.

Institutional Trading of Rackspace Technology

Large investors have recently made changes to their positions in the company. BNP Paribas Financial Markets purchased a new stake in shares of Rackspace Technology during the fourth quarter worth approximately $319,000. Jacobs Levy Equity Management Inc. boosted its holdings in Rackspace Technology by 42.4% in the first 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. Millennium Management LLC boosted its holdings in Rackspace Technology by 38.0% in the fourth quarter. Millennium Management LLC now owns 490,994 shares of the company’s stock valued at $1,085,000 after purchasing an additional 135,140 shares in the last quarter. Two Sigma Investments LP boosted its holdings in Rackspace Technology by 1,692.6% in the fourth quarter. Two Sigma Investments LP now owns 406,621 shares of the company’s stock valued at $899,000 after purchasing an additional 383,938 shares in the last quarter. Finally, Nuveen LLC acquired a new stake in shares of Rackspace Technology in the first quarter valued at approximately $257,000. 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.