Rackspace Technology (NASDAQ:RXT) Stock Price Down 7.7% – Here’s What Happened

Rackspace Technology, Inc. (NASDAQ:RXT) traded down 7.7% during trading on Wednesday . The company traded as low as $4.41 and last traded at $4.2920. Approximately 7,025,570 shares traded hands during mid-day trading, a decline of 70% from the average session volume of 23,767,885 shares. The stock had previously closed at $4.65.

Analysts Set New Price Targets

A number of brokerages recently weighed in on RXT. Weiss Ratings restated a “sell (d-)” rating on shares of Rackspace Technology in a report on Tuesday, June 2nd. Royal Bank Of Canada upped their price target on Rackspace Technology from $2.50 to $4.00 and gave the company a “sector perform” rating in a report on Wednesday, June 17th. Two analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Rackspace Technology currently has a consensus rating of “Reduce” and an average target price of $2.70.

Rackspace Technology Stock Performance

The business’s 50 day simple moving average is $5.53 and its 200-day simple moving average is $2.73. The company has a market cap of $1.13 billion, a price-to-earnings ratio of -7.29 and a beta of 2.99.

Rackspace Technology (NASDAQ:RXT) last posted its quarterly earnings results on Thursday, May 7th. The company reported ($0.06) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.03) by ($0.03). The firm had revenue of $678.10 million for the quarter, compared to analyst estimates of $660.83 million. Rackspace Technology has set its FY 2026 guidance at -0.200–0.150 EPS.

Insiders Place Their Bets

In other Rackspace Technology news, CFO Mark A. Marino sold 48,099 shares of the company’s stock in a transaction dated Thursday, June 4th. The stock was sold at an average price of $5.56, for a total value of $267,430.44. Following the transaction, the chief financial officer directly owned 3,370,431 shares of the company’s stock, valued at $18,739,596.36. This represents a 1.41% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 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. 2.30% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Rackspace Technology

Several large investors have recently made changes to their positions in RXT. AQR Capital Management LLC increased its holdings in Rackspace Technology by 228.6% in the first quarter. AQR Capital Management LLC now owns 264,565 shares of the company’s stock worth $447,000 after buying an additional 184,058 shares during the last quarter. Dynamic Technology Lab Private Ltd bought a new stake in Rackspace Technology in the first quarter worth approximately $113,000. Geode Capital Management LLC increased its stake in shares of Rackspace Technology by 17.9% during the 2nd quarter. Geode Capital Management LLC now owns 2,064,549 shares of the company’s stock worth $2,643,000 after purchasing an additional 313,636 shares during the last quarter. Creative Planning increased its stake in shares of 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. Finally, JPMorgan Chase & Co. raised its holdings in shares of Rackspace Technology by 25.5% during the 2nd quarter. JPMorgan Chase & Co. now owns 1,437,879 shares of the company’s stock valued at $1,840,000 after purchasing an additional 292,249 shares in the last quarter. Institutional investors own 82.48% of the company’s stock.

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.