Rackspace Technology (NASDAQ:RXT) Shares Down 7.9% – Time to Sell?

Rackspace Technology, Inc. (NASDAQ:RXT) fell 7.9% on Thursday . The company traded as low as $2.79 and last traded at $2.79. 730,589 shares were traded during mid-day trading, a decline of 34% from the average session volume of 1,102,841 shares. The stock had previously closed at $3.03.

Wall Street Analysts Forecast Growth

Separately, UBS Group upped their target price on Rackspace Technology from $2.10 to $2.30 and gave the company a “neutral” rating in a report on Friday, August 16th. One analyst has rated the stock with a sell rating, four have assigned a hold rating and one has issued a buy rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $2.34.

Rackspace Technology Trading Down 12.2 %

The stock’s 50-day moving average price is $2.54 and its two-hundred day moving average price is $2.38. The stock has a market capitalization of $601.24 million, a P/E ratio of -0.80 and a beta of 1.97.

Rackspace Technology (NASDAQ:RXT) last announced its quarterly earnings data on Tuesday, November 12th. The company reported ($0.04) earnings per share for the quarter, beating the consensus estimate of ($0.08) by $0.04. The firm had revenue of $675.80 million for the quarter, compared to the consensus estimate of $675.14 million. Rackspace Technology’s revenue for the quarter was down 7.7% on a year-over-year basis. During the same period last year, the company posted ($0.04) earnings per share. On average, equities research analysts predict that Rackspace Technology, Inc. will post -0.32 earnings per share for the current year.

Insider Transactions at Rackspace Technology

In other Rackspace Technology news, CEO Amar Maletira sold 84,823 shares of the firm’s stock in a transaction dated Monday, September 30th. The stock was sold at an average price of $2.42, for a total value of $205,271.66. Following the completion of the transaction, the chief executive officer now owns 5,158,399 shares in the company, valued at $12,483,325.58. This trade represents a 1.62 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Insiders sold 227,321 shares of company stock worth $542,103 over the last quarter. Corporate insiders own 2.00% of the company’s stock.

Hedge Funds Weigh In On Rackspace Technology

Several hedge funds and other institutional investors have recently added to or reduced their stakes in RXT. Renaissance Technologies LLC grew its stake in Rackspace Technology by 23.7% in the 2nd quarter. Renaissance Technologies LLC now owns 1,339,200 shares of the company’s stock worth $3,991,000 after buying an additional 256,900 shares in the last quarter. Susquehanna Fundamental Investments LLC bought a new stake in shares of Rackspace Technology during the 1st quarter worth $35,000. Public Employees Retirement System of Ohio grew its position in Rackspace Technology by 30.1% in the first quarter. Public Employees Retirement System of Ohio now owns 133,484 shares of the company’s stock worth $211,000 after acquiring an additional 30,916 shares in the last quarter. Mitsubishi UFJ Trust & Banking Corp grew its position in Rackspace Technology by 98.2% in the first quarter. Mitsubishi UFJ Trust & Banking Corp now owns 33,263 shares of the company’s stock worth $51,000 after acquiring an additional 16,484 shares in the last quarter. Finally, Allspring Global Investments Holdings LLC bought a new position in Rackspace Technology in the second quarter valued at $40,000. 82.48% of the stock is currently owned by hedge funds and other institutional investors.

About Rackspace Technology

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.