Rackspace Technology, Inc. (NASDAQ:RXT) Given Consensus Recommendation of “Hold” by Brokerages

Rackspace Technology, Inc. (NASDAQ:RXT) has earned an average recommendation of “Hold” from the six ratings firms that are presently covering the stock, MarketBeat reports. One analyst has rated the stock with a sell recommendation, four have assigned a hold recommendation and one has given a buy recommendation to the company. The average 12-month price objective among brokers that have covered the stock in the last year is $2.47.

Separately, Barclays boosted their target price on shares of Rackspace Technology from $1.00 to $2.00 and gave the stock an “underweight” rating in a research note on Monday, November 18th.

Insider Activity

In other news, CTO Srini Koushik sold 19,470 shares of the stock in a transaction that occurred on Friday, November 29th. The shares were sold at an average price of $2.67, for a total value of $51,984.90. Following the completion of the sale, the chief technology officer now owns 1,026,279 shares of the company’s stock, valued at $2,740,164.93. This represents a 1.86 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CFO Mark A. Marino sold 14,458 shares of the stock in a transaction that occurred on Monday, January 27th. The stock was sold at an average price of $2.34, for a total value of $33,831.72. Following the completion of the transaction, the chief financial officer now owns 1,915,356 shares of the company’s stock, valued at $4,481,933.04. The trade was a 0.75 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 209,322 shares of company stock worth $542,829 over the last ninety days. Corporate insiders own 2.00% of the company’s stock.

Hedge Funds Weigh In On Rackspace Technology

A number of hedge funds have recently modified their holdings of the business. Jacobs Levy Equity Management Inc. boosted its holdings in Rackspace Technology by 139.4% during the 3rd quarter. Jacobs Levy Equity Management Inc. now owns 814,624 shares of the company’s stock valued at $1,996,000 after acquiring an additional 474,299 shares during the period. Jane Street Group LLC lifted its position in Rackspace Technology by 27.4% in the third quarter. Jane Street Group LLC now owns 773,454 shares of the company’s stock valued at $1,895,000 after acquiring an additional 166,528 shares during the last quarter. Charles Schwab Investment Management Inc. lifted its position in 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 acquiring an additional 5,136 shares during the last quarter. Raymond James Financial Inc. purchased a new stake in shares of Rackspace Technology in the 4th quarter valued at about $855,000. Finally, Prudential Financial Inc. purchased a new stake in Rackspace Technology in the fourth quarter valued at approximately $715,000. 82.48% of the stock is currently owned by hedge funds and other institutional investors.

Rackspace Technology Stock Performance

NASDAQ RXT opened at $2.89 on Friday. The stock has a 50-day simple moving average of $2.45 and a two-hundred day simple moving average of $2.45. The firm has a market capitalization of $657.67 million, a P/E ratio of -0.83 and a beta of 2.04. Rackspace Technology has a fifty-two week low of $1.45 and a fifty-two week high of $3.41.

Rackspace Technology (NASDAQ:RXT) last posted its earnings results on Tuesday, November 12th. The company reported ($0.04) earnings per share for the quarter, beating the consensus estimate of ($0.07) by $0.03. The firm had revenue of $675.80 million for the quarter, compared to analysts’ expectations of $675.14 million. Rackspace Technology’s revenue for the quarter was down 7.7% compared to the same quarter last year. During the same period last year, the firm earned ($0.04) earnings per share. As a group, analysts forecast that Rackspace Technology will post -0.27 earnings per share for the current year.

Rackspace Technology Company Profile

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.