Rackspace Technology (NASDAQ:RXT) Shares Gap Down – Time to Sell?

Rackspace Technology, Inc. (NASDAQ:RXT)’s stock price gapped down prior to trading on Thursday . The stock had previously closed at $6.58, but opened at $6.27. Rackspace Technology shares last traded at $4.7970, with a volume of 14,347,542 shares changing hands.

Analyst Ratings Changes

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

Rackspace Technology Trading Down 27.7%

The stock’s 50 day moving average price is $5.29 and its two-hundred day moving average price is $2.63. The firm has a market capitalization of $1.19 billion, a price-to-earnings ratio of -7.81 and a beta of 2.99.

Rackspace Technology (NASDAQ:RXT) last announced its quarterly earnings data on Thursday, May 7th. The company reported ($0.06) EPS for the quarter, missing the consensus estimate of ($0.03) by ($0.03). The company 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.

Insider Activity

In other news, CFO Mark A. Marino sold 48,099 shares of the business’s stock in a transaction that occurred on Thursday, June 4th. The stock was sold at an average price of $5.56, for a total transaction of $267,430.44. Following the sale, the chief financial officer owned 3,370,431 shares of the company’s stock, valued at $18,739,596.36. The trade was a 1.41% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available 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. Insiders own 2.30% of the company’s stock.

Hedge Funds Weigh In On Rackspace Technology

Several hedge funds have recently bought and sold shares of the company. Abel Hall LLC purchased a new stake in Rackspace Technology during the first quarter worth $30,000. Creative Planning raised its stake in shares of Rackspace Technology by 114.2% during 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. SG Americas Securities LLC acquired a new position in shares of Rackspace Technology during the 1st quarter worth $34,000. Jump Financial LLC purchased a new stake in shares of Rackspace Technology in the 4th quarter worth about $34,000. Finally, State of Wyoming purchased a new stake in shares of Rackspace Technology in the 1st quarter worth about $35,000. 82.48% of the stock is 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.