Rackspace Technology, Inc. (NASDAQ:RXT) Given Consensus Recommendation of “Reduce” by Brokerages

Shares of Rackspace Technology, Inc. (NASDAQ:RXT) have received an average rating of “Reduce” from the six research firms that are currently covering the firm, Marketbeat Ratings reports. Two analysts have rated the stock with a sell recommendation and four have issued a hold recommendation on the company. The average 12 month price objective among brokers that have updated their coverage on the stock in the last year is $1.70.

RXT has been the subject of several research analyst reports. Weiss Ratings reiterated a “sell (d-)” rating on shares of Rackspace Technology in a research note on Thursday, January 22nd. Royal Bank Of Canada increased their price target on Rackspace Technology from $1.75 to $2.50 and gave the company a “sector perform” rating in a research note on Friday, February 27th.

Insider Buying and Selling at Rackspace Technology

In related news, EVP Dharmendra Kumar Sinha sold 45,393 shares of Rackspace Technology stock in a transaction dated Monday, March 2nd. The shares were sold at an average price of $1.81, for a total transaction of $82,161.33. Following the completion of the sale, the executive vice president owned 2,464,180 shares of the company’s stock, valued at approximately $4,460,165.80. The trade was a 1.81% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CFO Mark A. Marino sold 234,683 shares of the company’s stock in a transaction dated Monday, February 23rd. The shares were sold at an average price of $1.63, for a total transaction of $382,533.29. Following the completion of the transaction, the chief financial officer owned 2,193,115 shares in the company, valued at approximately $3,574,777.45. This trade represents a 9.67% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 300,259 shares of company stock worth $501,226. Corporate insiders own 2.90% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. Quadrature Capital Ltd bought a new stake in shares of Rackspace Technology during the second quarter worth approximately $26,000. Savant Capital LLC bought a new position in shares of Rackspace Technology during the third quarter worth approximately $33,000. Creative Planning lifted its holdings in 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 purchasing an additional 13,708 shares during the last quarter. Jump Financial LLC acquired a new stake in Rackspace Technology during the 4th quarter worth approximately $34,000. Finally, R Squared Ltd boosted its stake in Rackspace Technology by 74.3% in the 3rd quarter. R Squared Ltd now owns 25,127 shares of the company’s stock valued at $35,000 after purchasing an additional 10,707 shares during the period. 82.48% of the stock is owned by institutional investors.

Rackspace Technology Stock Down 13.0%

Shares of RXT stock traded down $0.31 on Friday, reaching $2.07. The stock had a trading volume of 10,573,703 shares, compared to its average volume of 64,939,252. Rackspace Technology has a 12 month low of $0.39 and a 12 month high of $2.74. The firm has a market capitalization of $504.23 million, a price-to-earnings ratio of -2.18 and a beta of 1.80. The firm’s 50-day moving average is $1.05 and its two-hundred day moving average is $1.21.

Rackspace Technology (NASDAQ:RXT) last posted its quarterly earnings results on Thursday, February 26th. The company reported ($0.01) EPS for the quarter, topping analysts’ consensus estimates of ($0.04) by $0.03. The business had revenue of $682.80 million for the quarter, compared to the consensus estimate of $672.56 million. Rackspace Technology has set its FY 2026 guidance at -0.200–0.15 EPS.

Rackspace Technology Company Profile

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.