Rackspace Technology (NASDAQ:RXT) Trading 9.9% Higher – Time to Buy?

Rackspace Technology, Inc. (NASDAQ:RXT) shares were up 9.9% on Tuesday . The company traded as high as $7.32 and last traded at $7.5160. Approximately 3,349,951 shares changed hands during trading, a decline of 86% from the average session volume of 24,234,350 shares. The stock had previously closed at $6.84.

Analysts Set New Price Targets

Several brokerages have recently issued reports on RXT. Royal Bank Of Canada boosted their price objective on Rackspace Technology from $2.50 to $4.00 and gave the stock a “sector perform” rating in a research report on Wednesday, June 17th. Weiss Ratings restated a “sell (d-)” rating on shares of Rackspace Technology in a research report on Tuesday, June 2nd. Two analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Reduce” and an average target price of $2.70.

Rackspace Technology Stock Up 3.3%

The firm has a market cap of $1.76 billion, a price-to-earnings ratio of -11.53 and a beta of 3.01. The stock’s 50 day moving average is $4.08 and its 200 day moving average is $2.18.

Rackspace Technology (NASDAQ:RXT) last released its 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 business had revenue of $678.10 million during the quarter, compared to analysts’ expectations of $660.83 million. Rackspace Technology has set its FY 2026 guidance at -0.200–0.150 EPS. Analysts anticipate that Rackspace Technology, Inc. will post -0.18 earnings per share for the current fiscal year.

Insider Buying and Selling at Rackspace Technology

In related news, CFO Mark A. Marino sold 48,099 shares of the firm’s stock in a transaction dated Thursday, June 4th. The stock was sold at an average price of $5.56, for a total transaction of $267,430.44. Following the completion of the transaction, the chief financial officer owned 3,370,431 shares of the company’s stock, valued at $18,739,596.36. This trade represents a 1.41% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. 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 company insiders.

Institutional Investors Weigh In On Rackspace Technology

Hedge funds and other institutional investors have recently bought and sold shares of the business. Janus Henderson Group PLC boosted its position in shares of Rackspace Technology by 179.7% during the 1st quarter. Janus Henderson Group PLC now owns 2,937,670 shares of the company’s stock valued at $2,878,000 after purchasing an additional 1,887,317 shares in the last quarter. Two Sigma Investments LP raised its holdings in shares of Rackspace Technology by 368.4% in the 3rd quarter. Two Sigma Investments LP now owns 673,689 shares of the company’s stock worth $950,000 after purchasing an additional 529,862 shares in the last quarter. Vanguard Group Inc. lifted its stake in Rackspace Technology by 6.1% during the third quarter. Vanguard Group Inc. now owns 6,288,882 shares of the company’s stock valued at $8,867,000 after purchasing an additional 359,087 shares during the last quarter. Geode Capital Management LLC lifted its stake in Rackspace Technology by 17.9% during 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 during the last quarter. Finally, JPMorgan Chase & Co. boosted its holdings in Rackspace Technology by 25.5% during the second quarter. JPMorgan Chase & Co. now owns 1,437,879 shares of the company’s stock worth $1,840,000 after buying an additional 292,249 shares in the last quarter. 82.48% of the stock is currently owned by institutional investors.

About Rackspace Technology

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.