Rackspace Technology (NASDAQ:RXT) Stock Price Down 4.6% – What’s Next?

Rackspace Technology, Inc. (NASDAQ:RXT) traded down 4.6% during mid-day trading on Wednesday . The stock traded as low as $2.24 and last traded at $2.26. 178,207 shares changed hands during trading, a decline of 84% from the average session volume of 1,102,356 shares. The stock had previously closed at $2.37.

Analysts Set New Price Targets

A number of analysts have recently weighed in on the stock. Barclays increased their target price on shares of Rackspace Technology from $1.00 to $2.00 and gave the stock an “underweight” rating in a report on Monday. UBS Group increased their target price on shares of Rackspace Technology from $2.10 to $2.30 and gave the stock a “neutral” rating in a report on Friday, August 16th. Two analysts have rated the stock with a sell rating, four have assigned a hold rating and one has issued a buy rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $2.29.

Rackspace Technology Price Performance

The business has a 50 day moving average price of $2.55 and a 200 day moving average price of $2.41. The stock has a market capitalization of $516.58 million, a PE ratio of -0.64 and a beta of 1.97.

Rackspace Technology (NASDAQ:RXT) last announced its quarterly 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 business had revenue of $675.80 million for the quarter, compared to the consensus estimate of $675.14 million. During the same period in the previous year, the company earned ($0.04) earnings per share. The company’s revenue for the quarter was down 7.7% compared to the same quarter last year. On average, equities analysts expect that Rackspace Technology, Inc. will post -0.27 earnings per share for the current year.

Insider Transactions at Rackspace Technology

In other news, CEO Amar Maletira sold 82,552 shares of the stock in a transaction that occurred on Wednesday, October 2nd. The shares were sold at an average price of $2.37, for a total value of $195,648.24. Following the transaction, the chief executive officer now owns 4,983,984 shares in the company, valued at $11,812,042.08. This represents a 1.63 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Company insiders own 2.00% of the company’s stock.

Hedge Funds Weigh In On Rackspace Technology

Several institutional investors have recently made changes to their positions in the business. The Manufacturers Life Insurance Company lifted its stake in shares of 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 purchasing an additional 9,275 shares during the period. ClariVest Asset Management LLC increased its holdings in Rackspace Technology by 2.8% in the 2nd quarter. ClariVest Asset Management LLC now owns 379,721 shares of the company’s stock worth $1,132,000 after acquiring an additional 10,281 shares in the last quarter. Creative Planning purchased a new stake in Rackspace Technology in the 3rd quarter worth approximately $29,000. Allspring Global Investments Holdings LLC purchased a new stake in Rackspace Technology in the 2nd quarter worth approximately $40,000. Finally, SG Americas Securities LLC increased its holdings in Rackspace Technology by 64.7% in the 3rd quarter. SG Americas Securities LLC now owns 34,467 shares of the company’s stock worth $84,000 after acquiring an additional 13,543 shares in the last quarter. Institutional investors own 82.48% of the company’s stock.

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.