Rackspace Technology (NASDAQ:RXT) Sets New 12-Month High – Time to Buy?

Rackspace Technology, Inc. (NASDAQ:RXT)’s share price hit a new 52-week high during trading on Wednesday . The stock traded as high as $6.34 and last traded at $6.33, with a volume of 60544385 shares changing hands. The stock had previously closed at $4.69.

Wall Street Analysts Forecast Growth

RXT has been the subject of several recent research reports. Royal Bank Of Canada raised their price objective 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. Weiss Ratings reissued a “sell (d-)” rating on shares of Rackspace Technology in a research report on Thursday, January 22nd. Three investment analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Reduce” and an average price target of $1.95.

Rackspace Technology Stock Performance

The firm has a 50-day moving average price of $1.83 and a 200-day moving average price of $1.33. The stock has a market cap of $1.58 billion, a PE ratio of -10.38 and a beta of 2.23.

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 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. As a group, sell-side analysts anticipate that Rackspace Technology, Inc. will post -0.18 EPS for the current fiscal year.

Insider Activity

In other news, EVP Dharmendra Kumar Sinha sold 188,123 shares of Rackspace Technology stock in a transaction dated Wednesday, March 18th. The stock was sold at an average price of $1.81, for a total value of $340,502.63. Following the completion of the transaction, the executive vice president owned 2,276,057 shares of the company’s stock, valued at $4,119,663.17. The trade was a 7.63% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Mark A. Marino sold 234,683 shares of Rackspace Technology stock in a transaction dated Monday, February 23rd. The stock was sold at an average price of $1.63, for a total value of $382,533.29. Following the completion of the transaction, the chief financial officer directly owned 2,193,115 shares of the company’s stock, valued at approximately $3,574,777.45. This represents a 9.67% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 502,440 shares of company stock valued at $867,173. 2.90% of the stock is owned by insiders.

Hedge Funds Weigh In On Rackspace Technology

Hedge funds have recently bought and sold shares of the business. AustralianSuper Pty Ltd purchased a new position in Rackspace Technology in the 3rd quarter worth about $2,276,000. Engineers Gate Manager LP raised its position in Rackspace Technology by 47.1% in the 2nd quarter. Engineers Gate Manager LP now owns 34,777 shares of the company’s stock worth $45,000 after buying an additional 11,141 shares during the last quarter. Jump Financial LLC purchased a new position in Rackspace Technology in the 4th quarter worth about $34,000. Creative Planning raised its position 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 buying an additional 13,708 shares during the last quarter. Finally, Bank of New York Mellon Corp raised its position in Rackspace Technology by 35.4% in the 1st quarter. Bank of New York Mellon Corp now owns 239,954 shares of the company’s stock worth $235,000 after buying an additional 62,768 shares during the last quarter. Hedge funds and other institutional investors own 82.48% of the company’s stock.

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.