Rackspace Technology (NASDAQ:RXT) Trading Down 7.6% – Should You Sell?

Shares of Rackspace Technology, Inc. (NASDAQ:RXT) dropped 7.6% during trading on Monday . The company traded as low as $6.51 and last traded at $6.6690. Approximately 4,029,750 shares were traded during trading, a decline of 83% from the average session volume of 24,335,793 shares. The stock had previously closed at $7.22.

Wall Street Analyst Weigh In

Several research analysts recently issued reports on the stock. Weiss Ratings reiterated a “sell (d-)” rating on shares of Rackspace Technology in a research note on Tuesday, June 2nd. Royal Bank Of Canada upped their price objective on shares of Rackspace Technology from $2.50 to $4.00 and gave the stock a “sector perform” rating in a report on Wednesday, June 17th. Two equities research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Rackspace Technology presently has a consensus rating of “Reduce” and an average target price of $2.70.

Rackspace Technology Price Performance

The firm has a 50-day moving average of $3.96 and a 200 day moving average of $2.14. The company has a market capitalization of $1.65 billion, a PE ratio of -10.92 and a beta of 3.01.

Rackspace Technology (NASDAQ:RXT) last released its quarterly earnings data on Thursday, May 7th. The company reported ($0.06) earnings per share for the quarter, missing the consensus estimate of ($0.03) by ($0.03). The firm had revenue of $678.10 million for 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 EPS for the current year.

Insider Activity at Rackspace Technology

In other news, CFO Mark A. Marino sold 48,099 shares of the company’s stock in a transaction dated Thursday, June 4th. The shares were sold at an average price of $5.56, for a total transaction 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 represents a 1.41% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 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. 2.30% of the stock is owned by insiders.

Hedge Funds Weigh In On Rackspace Technology

Institutional investors have recently bought and sold shares of the stock. R Squared Ltd lifted its stake in shares of Rackspace Technology by 74.3% during the 3rd quarter. R Squared Ltd now owns 25,127 shares of the company’s stock valued at $35,000 after buying an additional 10,707 shares in the last quarter. Engineers Gate Manager LP increased its holdings in shares of Rackspace Technology by 47.1% in the second 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 during the last quarter. Alliancebernstein L.P. increased its holdings in shares of Rackspace Technology by 4.0% in the third quarter. Alliancebernstein L.P. now owns 290,750 shares of the company’s stock worth $410,000 after purchasing an additional 11,300 shares during the last quarter. Creative Planning lifted its position in shares of Rackspace Technology by 114.2% in the second quarter. Creative Planning now owns 25,715 shares of the company’s stock worth $33,000 after buying an additional 13,708 shares in the last quarter. Finally, XTX Topco Ltd lifted its position in shares of Rackspace Technology by 62.8% in the second quarter. XTX Topco Ltd now owns 57,682 shares of the company’s stock worth $74,000 after buying an additional 22,243 shares in the last quarter. 82.48% of the stock is owned by institutional investors.

Rackspace Technology Company Profile

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.