Rackspace Technology (NASDAQ:RXT) Shares Gap Down – What’s Next?

Rackspace Technology, Inc. (NASDAQ:RXT)’s share price gapped down before the market opened on Tuesday . The stock had previously closed at $2.95, but opened at $2.84. Rackspace Technology shares last traded at $2.86, with a volume of 71,924 shares traded.

Analysts Set New Price Targets

Separately, Barclays boosted their target price on shares of Rackspace Technology from $1.00 to $2.00 and gave the company an “underweight” rating in a research report on Monday, November 18th. One research analyst has rated the stock with a sell rating, four have issued a hold rating and one has given a buy rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $2.47.

Rackspace Technology Trading Down 1.9 %

The firm’s 50-day moving average is $2.45 and its 200-day moving average is $2.45. The firm has a market cap of $658.81 million, a price-to-earnings ratio of -0.83 and a beta of 2.04.

Rackspace Technology (NASDAQ:RXT) last posted its earnings results on Tuesday, November 12th. The company reported ($0.04) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.07) by $0.03. The business had revenue of $675.80 million during the quarter, compared to analyst estimates of $675.14 million. The company’s revenue was down 7.7% on a year-over-year basis. During the same quarter in the prior year, the company earned ($0.04) EPS. Analysts forecast that Rackspace Technology, Inc. will post -0.27 EPS for the current fiscal year.

Insider Activity

In other Rackspace Technology news, CEO Amar Maletira sold 55,461 shares of the company’s stock in a transaction on Tuesday, December 3rd. The stock was sold at an average price of $2.54, for a total value of $140,870.94. Following the completion of the transaction, the chief executive officer now owns 4,928,523 shares in the company, valued at $12,518,448.42. This represents a 1.11 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Dharmendra Kumar Sinha sold 88,548 shares of Rackspace Technology stock in a transaction on Friday, November 29th. The stock was sold at an average price of $2.67, for a total value of $236,423.16. Following the sale, the executive vice president now owns 2,334,166 shares in the company, valued at $6,232,223.22. The trade was a 3.65 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 209,322 shares of company stock worth $542,829 over the last 90 days. 2.00% of the stock is currently owned by corporate insiders.

Institutional Trading of Rackspace Technology

Several hedge funds have recently added to or reduced their stakes in the stock. Charles Schwab Investment Management Inc. raised its position in shares of Rackspace Technology by 0.9% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 595,860 shares of the company’s stock valued at $1,317,000 after purchasing an additional 5,136 shares during the period. The Manufacturers Life Insurance Company grew its stake in Rackspace Technology by 44.7% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 30,019 shares of the company’s stock valued at $89,000 after buying an additional 9,275 shares in the last quarter. Creative Planning bought a new stake in Rackspace Technology during the 3rd quarter valued at $29,000. SG Americas Securities LLC boosted its holdings in shares of Rackspace Technology by 64.7% in the third quarter. SG Americas Securities LLC now owns 34,467 shares of the company’s stock worth $84,000 after acquiring an additional 13,543 shares during the period. Finally, US Bancorp DE grew its position in shares of Rackspace Technology by 10,766.2% in the third quarter. US Bancorp DE now owns 16,408 shares of the company’s stock valued at $40,000 after purchasing an additional 16,257 shares in the last quarter. Institutional investors own 82.48% of the company’s stock.

About Rackspace Technology

Rackspace Technology, Inc operates as a multi cloud technology services company in the Americas, Europe, the Middle East, Africa, and The Asia-Pacific region. It operates through three segments: Multicloud Services, Apps & Cross Platform, and OpenStack Public Cloud. The company provides public and private cloud managed services, which allow customers to determine, manage, and optimize the right infrastructure, platforms, and services; professional services related to designing and building multi cloud solutions and cloud-native applications; and managed hosting and colocation services.