Rackspace Technology (NASDAQ:RXT) Stock Price Down 7.6% – What’s Next?

Rackspace Technology, Inc. (NASDAQ:RXT) shares fell 7.6% during mid-day trading on Wednesday . The stock traded as low as $6.08 and last traded at $6.2450. Approximately 17,702,426 shares traded hands during mid-day trading, a decline of 25% from the average daily volume of 23,505,803 shares. The stock had previously closed at $6.76.

Wall Street Analyst Weigh In

Several research analysts have weighed in on RXT shares. Royal Bank Of Canada increased 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 reissued a “sell (d-)” rating on shares of Rackspace Technology in a research report on Tuesday, June 2nd. Two investment analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, Rackspace Technology currently has an average rating of “Reduce” and an average price target of $2.70.

Rackspace Technology Stock Performance

The firm’s fifty day simple moving average is $5.19 and its 200 day simple moving average is $2.59. The stock has a market capitalization of $1.56 billion, a P/E ratio of -10.29 and a beta of 2.99.

Rackspace Technology (NASDAQ:RXT) last issued 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 the consensus estimate of $660.83 million. Rackspace Technology has set its FY 2026 guidance at -0.200–0.150 EPS.

Insider Activity

In other news, CFO Mark A. Marino sold 48,099 shares of the business’s stock in a transaction on 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 approximately $18,739,596.36. The trade was a 1.41% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through 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. Insiders own 2.30% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Abel Hall LLC bought a new stake in shares of Rackspace Technology during the 1st quarter valued at approximately $30,000. Creative Planning lifted its stake in Rackspace Technology by 114.2% in the 2nd quarter. Creative Planning now owns 25,715 shares of the company’s stock valued at $33,000 after purchasing an additional 13,708 shares during the last quarter. SG Americas Securities LLC acquired a new stake in Rackspace Technology in the first quarter valued at approximately $34,000. Jump Financial LLC acquired a new stake in Rackspace Technology in the fourth quarter valued at approximately $34,000. Finally, State of Wyoming bought a new stake in shares of Rackspace Technology during the first quarter worth $35,000. Institutional investors and hedge funds own 82.48% of the company’s stock.

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.