Rackspace Technology (NASDAQ:RXT) Issues Quarterly Earnings Results, Beats Estimates By $0.02 EPS

Rackspace Technology (NASDAQ:RXT) issued its quarterly earnings results on Monday. The company reported ($0.06) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.08) by $0.02, FiscalAI reports. The firm had revenue of $609.10 million for the quarter, compared to the consensus estimate of $573.96 million.

Rackspace Technology Stock Up 5.8%

NASDAQ RXT opened at $2.83 on Wednesday. Rackspace Technology has a twelve month low of $0.39 and a twelve month high of $8.60. The stock has a market cap of $722.56 million, a P/E ratio of -4.91 and a beta of 3.29. The company’s 50-day simple moving average is $3.30 and its 200 day simple moving average is $3.26.

Insider Buying and Selling at Rackspace Technology

In other Rackspace Technology news, Director Anthony Scott sold 48,780 shares of the firm’s stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $4.25, for a total transaction of $207,315.00. Following the completion of the transaction, the director owned 180,215 shares in the company, valued at $765,913.75. This trade represents a 21.30% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, EVP Dharmendra Sinha sold 107,002 shares of Rackspace Technology stock in a transaction that occurred on Wednesday, September 2nd. The shares were sold at an average price of $2.95, for a total value of $315,655.90. Following the sale, the executive vice president directly owned 3,263,429 shares in the company, valued at $9,627,115.55. The trade was a 3.17% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 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 have sold 714,141 shares of company stock worth $2,299,799 in the last three months. 2.30% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades

Several brokerages have recently weighed in on RXT. Wall Street Zen lowered Rackspace Technology from a “hold” rating to a “sell” rating in a report on Saturday, August 15th. Weiss Ratings restated a “sell (d-)” rating on shares of Rackspace Technology in a research report on Friday, August 28th. One analyst has rated the stock with a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, Rackspace Technology currently has a consensus rating of “Reduce” and a consensus target price of $4.00.

About Rackspace Technology

Rackspace Technology, Inc. (NASDAQ: RXT) provides multicloud technology services to businesses and public-sector organizations. Its offerings include cloud strategy and migration, infrastructure management, application modernization, data services, and cybersecurity. The company helps customers operate workloads across public cloud platforms, including Amazon Web Services, Microsoft Azure, and Google Cloud, as well as private and hybrid cloud environments. Its services include consulting and ongoing support tailored to customers’ technology needs.