Rackspace Technology (NASDAQ:RXT) Sees Strong Trading Volume – What’s Next?

Rackspace Technology, Inc. (NASDAQ:RXT) shares saw unusually-high trading volume on Monday . Approximately 22,290,387 shares were traded during mid-day trading, a decline of 3% from the previous session’s volume of 23,033,402 shares.The stock last traded at $4.8370 and had previously closed at $5.49.

Wall Street Analyst Weigh In

RXT has been the topic of several analyst reports. Royal Bank Of Canada increased their target price on shares of Rackspace Technology from $1.75 to $2.50 and gave the stock a “sector perform” rating in a report on Friday, February 27th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Rackspace Technology in a report on Thursday, January 22nd. Three investment analysts have rated the stock with a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Reduce” and a consensus target price of $1.95.

Rackspace Technology Stock Down 14.5%

The business’s fifty day moving average is $1.61 and its 200 day moving average is $1.24. The firm has a market capitalization of $1.17 billion, a price-to-earnings ratio of -7.70 and a beta of 2.23.

Rackspace Technology (NASDAQ:RXT) last issued its quarterly earnings data on Thursday, May 7th. The company reported ($0.06) EPS for the quarter, missing analysts’ consensus estimates of ($0.03) by ($0.03). The company 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. Equities research analysts expect that Rackspace Technology, Inc. will post -0.18 EPS for the current year.

Insiders Place Their Bets

In related news, CFO Mark A. Marino sold 14,058 shares of the firm’s stock in a transaction on Wednesday, March 18th. The shares were sold at an average price of $1.81, for a total transaction of $25,444.98. Following the sale, the chief financial officer directly owned 2,158,874 shares in the company, valued at $3,907,561.94. This trade represents a 0.65% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, EVP Dharmendra Kumar Sinha sold 188,123 shares of the firm’s stock in a transaction on Wednesday, March 18th. The stock was sold at an average price of $1.81, for a total transaction of $340,502.63. Following the sale, the executive vice president owned 2,276,057 shares in the company, valued at approximately $4,119,663.17. The trade was a 7.63% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 502,440 shares of company stock worth $867,173. 2.90% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in RXT. AQR Capital Management LLC grew its position in Rackspace Technology by 228.6% in the first quarter. AQR Capital Management LLC now owns 264,565 shares of the company’s stock valued at $447,000 after purchasing an additional 184,058 shares in the last quarter. Dynamic Technology Lab Private Ltd bought a new position in Rackspace Technology in the first quarter valued at approximately $113,000. Geode Capital Management LLC grew its stake in Rackspace Technology by 17.9% in the second quarter. Geode Capital Management LLC now owns 2,064,549 shares of the company’s stock valued at $2,643,000 after purchasing an additional 313,636 shares in the last quarter. Creative Planning increased its position 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 stake 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 worth $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.