Rackspace Technology, Inc. (NASDAQ:RXT) Receives $2.47 Consensus Target Price from Brokerages

Shares of Rackspace Technology, Inc. (NASDAQ:RXT) have earned an average recommendation of “Hold” from the six ratings firms that are covering the stock, MarketBeat reports. One analyst has rated the stock with a sell rating, four have given a hold rating and one has given a buy rating to the company. The average 1-year price target among brokerages that have updated their coverage on the stock in the last year is $2.47.

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

Rackspace Technology Price Performance

Shares of RXT opened at $2.38 on Monday. Rackspace Technology has a 1 year low of $1.45 and a 1 year high of $3.41. The company has a 50 day simple moving average of $2.46 and a two-hundred day simple moving average of $2.46. The firm has a market cap of $541.61 million, a P/E ratio of -0.68 and a beta of 2.02.

Rackspace Technology (NASDAQ:RXT) last posted its earnings results on Tuesday, November 12th. The company reported ($0.04) EPS for the quarter, beating analysts’ consensus estimates of ($0.07) by $0.03. The firm had revenue of $675.80 million for the quarter, compared to the consensus estimate of $675.14 million. The firm’s revenue was down 7.7% compared to the same quarter last year. During the same quarter in the prior year, the company posted ($0.04) earnings per share. On average, sell-side analysts anticipate that Rackspace Technology will post -0.27 earnings per share for the current year.

Insider Buying and Selling at Rackspace Technology

In other news, EVP Dharmendra Kumar Sinha sold 88,548 shares of the stock in a transaction that occurred on Friday, November 29th. The stock was sold at an average price of $2.67, for a total transaction of $236,423.16. Following the completion of the transaction, the executive vice president now directly owns 2,334,166 shares of the company’s stock, valued at approximately $6,232,223.22. This represents a 3.65 % decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, CEO Amar Maletira sold 55,461 shares of the stock in a transaction that occurred 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 transaction, the chief executive officer now directly owns 4,928,523 shares of the company’s stock, valued at approximately $12,518,448.42. This trade represents a 1.11 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 194,864 shares of company stock valued at $508,997 in the last ninety days. Insiders own 2.00% of the company’s stock.

Institutional Investors Weigh In On Rackspace Technology

Institutional investors and hedge funds have recently modified their holdings of the company. Renaissance Technologies LLC grew its holdings in shares of Rackspace Technology by 23.7% in the 2nd quarter. Renaissance Technologies LLC now owns 1,339,200 shares of the company’s stock worth $3,991,000 after acquiring an additional 256,900 shares during the period. Jacobs Levy Equity Management Inc. grew its holdings in shares of Rackspace Technology by 139.4% in the 3rd quarter. Jacobs Levy Equity Management Inc. now owns 814,624 shares of the company’s stock worth $1,996,000 after acquiring an additional 474,299 shares during the period. US Bancorp DE grew its holdings in shares of Rackspace Technology by 10,766.2% in the 3rd quarter. US Bancorp DE now owns 16,408 shares of the company’s stock worth $40,000 after acquiring an additional 16,257 shares during the period. Jane Street Group LLC grew its holdings in shares of Rackspace Technology by 27.4% in the 3rd quarter. Jane Street Group LLC now owns 773,454 shares of the company’s stock worth $1,895,000 after acquiring an additional 166,528 shares during the period. Finally, FMR LLC grew its holdings in shares of Rackspace Technology by 437.5% in the 3rd quarter. FMR LLC now owns 31,154 shares of the company’s stock worth $76,000 after acquiring an additional 25,358 shares during the period. Institutional investors and hedge funds 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.