Rackspace Technology (NASDAQ:RXT) Trading 7.2% Higher – Time to Buy?

Rackspace Technology, Inc. (NASDAQ:RXT)’s share price shot up 7.2% during mid-day trading on Friday . The company traded as high as $2.54 and last traded at $2.53. 1,023,437 shares were traded during trading, an increase of 42% from the average session volume of 721,513 shares. The stock had previously closed at $2.36.

Analysts Set New Price Targets

Separately, Barclays increased their price target on shares of Rackspace Technology from $1.00 to $2.00 and gave the stock an “underweight” rating in a report on Monday, November 18th. One equities research analyst has rated the stock with a sell rating, four have issued a hold rating and one has given a buy rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average target price of $2.47.

Rackspace Technology Trading Up 9.7 %

The stock’s 50 day moving average price is $2.47 and its two-hundred day moving average price is $2.47. The firm has a market capitalization of $589.40 million, a price-to-earnings ratio of -0.74 and a beta of 2.02.

Rackspace Technology (NASDAQ:RXT) last issued its earnings results on Tuesday, November 12th. The company reported ($0.04) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.07) by $0.03. The company had revenue of $675.80 million during the quarter, compared to analysts’ expectations of $675.14 million. The company’s quarterly revenue was down 7.7% on a year-over-year basis. During the same period last year, the business posted ($0.04) earnings per share. On average, sell-side analysts forecast that Rackspace Technology, Inc. will post -0.27 earnings per share for the current fiscal year.

Insider Buying and Selling at Rackspace Technology

In other news, CEO Amar Maletira sold 55,461 shares of the business’s stock in a transaction on Tuesday, December 3rd. The stock was sold at an average price of $2.54, for a total value of $140,870.94. Following the completion of the transaction, the chief executive officer now directly owns 4,928,523 shares of the company’s stock, valued at $12,518,448.42. The trade was a 1.11 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, Director Anthony C. Roberts acquired 19,455 shares of the firm’s stock in a transaction that occurred on Friday, December 6th. The shares were bought at an average cost of $2.60 per share, for a total transaction of $50,583.00. Following the purchase, the director now owns 161,930 shares of the company’s stock, valued at approximately $421,018. The trade was a 13.66 % increase in their ownership of the stock. The disclosure for this purchase can be found here. Over the last 90 days, insiders have sold 194,864 shares of company stock valued at $508,997. Insiders own 2.00% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Bank of New York Mellon Corp lifted its stake in shares of Rackspace Technology by 17.1% during the 2nd quarter. Bank of New York Mellon Corp now owns 222,778 shares of the company’s stock worth $664,000 after purchasing an additional 32,468 shares during the period. Renaissance Technologies LLC increased its stake in Rackspace Technology by 23.7% in the second quarter. Renaissance Technologies LLC now owns 1,339,200 shares of the company’s stock valued at $3,991,000 after purchasing an additional 256,900 shares during the last quarter. Sargent Investment Group LLC lifted its position in Rackspace Technology by 86.9% during the second quarter. Sargent Investment Group LLC now owns 215,100 shares of the company’s stock worth $641,000 after buying an additional 100,000 shares during the period. The Manufacturers Life Insurance Company boosted its stake in Rackspace Technology by 44.7% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 30,019 shares of the company’s stock worth $89,000 after buying an additional 9,275 shares during the last quarter. Finally, Susquehanna Fundamental Investments LLC grew its holdings in Rackspace Technology by 143.7% in the 2nd quarter. Susquehanna Fundamental Investments LLC now owns 53,506 shares of the company’s stock valued at $159,000 after buying an additional 31,550 shares during the period. 82.48% of the stock is currently owned by hedge funds and other institutional investors.

Rackspace Technology Company Profile

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.