Rackspace Technology (NASDAQ:RXT) Shares Down 14.1% – Time to Sell?

Shares of Rackspace Technology, Inc. (NASDAQ:RXT) fell 14.1% during mid-day trading on Friday. The company traded as low as $2.57 and last traded at $2.5670. 2,344,051 shares changed hands during trading, a decline of 87% from the average session volume of 17,552,451 shares. The stock had previously closed at $2.99.

Analyst Upgrades and Downgrades

Several brokerages recently commented on RXT. Weiss Ratings reissued a “sell (d-)” rating on shares of Rackspace Technology in a research note on Friday, August 28th. Wall Street Zen lowered shares of Rackspace Technology from a “hold” rating to a “sell” rating in a research report on Saturday, August 15th. One analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Rackspace Technology currently has an average rating of “Reduce” and a consensus price target of $4.00.

Rackspace Technology Trading Down 12.4%

The business has a 50-day moving average of $3.40 and a two-hundred day moving average of $3.20. The firm has a market cap of $667.76 million, a P/E ratio of -4.03 and a beta of 3.10.

Rackspace Technology (NASDAQ:RXT) last posted its earnings results on Monday, August 10th. The company reported ($0.08) EPS for the quarter, beating the consensus estimate of ($0.09) by $0.01. The firm had revenue of $670.10 million during the quarter, compared to the consensus estimate of $646.00 million. As a group, equities analysts expect that Rackspace Technology, Inc. will post -0.28 EPS for the current year.

Insider Buying and Selling at Rackspace Technology

In other Rackspace Technology news, Director Anthony Scott sold 48,780 shares of the business’s stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $4.25, for a total transaction of $207,315.00. Following the sale, the director directly owned 180,215 shares of the company’s stock, valued at $765,913.75. The trade was a 21.30% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CFO Mark A. Marino sold 51,373 shares of the company’s stock in a transaction that occurred on Wednesday, September 2nd. The shares were sold at an average price of $2.95, for a total transaction of $151,550.35. Following the completion of the transaction, the chief financial officer owned 2,865,853 shares of the company’s stock, valued at approximately $8,454,266.35. This trade represents a 1.76% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 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 have sold 714,141 shares of company stock worth $2,299,799 in the last 90 days. Corporate insiders own 2.30% of the company’s stock.

Hedge Funds Weigh In On Rackspace Technology

Several large investors have recently modified their holdings of RXT. Abel Hall LLC bought a new position in Rackspace Technology during the 1st quarter worth $30,000. SG Americas Securities LLC acquired a new position in Rackspace Technology during the 1st quarter worth about $34,000. State of Wyoming acquired a new position in Rackspace Technology during the 1st quarter worth about $35,000. Legal & General Group Plc bought a new stake in shares of Rackspace Technology in the 2nd quarter valued at about $58,000. Finally, Quantbot Technologies LP bought a new stake in shares of Rackspace Technology in the 2nd quarter valued at about $63,000. Institutional investors own 82.48% of the company’s stock.

About Rackspace Technology

Rackspace Technology, Inc is a technology services company that helps businesses design, build, operate and optimize information technology environments across public, private and hybrid clouds. Its offerings are intended to support organizations at various stages of cloud adoption, from migration and modernization to ongoing management and optimization.

The company provides managed cloud services for major cloud platforms, including Amazon Web Services, Microsoft Azure and Google Cloud.