Amar Maletira Sells 1,780,619 Shares of Rackspace Technology (NASDAQ:RXT) Stock

Key Points

• CEO Amar Maletira sold 1,780,619 shares of Rackspace Technology (NASDAQ:RXT) at an average price of $1.35, amounting to a total of $2,403,835.65, resulting in a 27.87% decrease in his ownership.
• Rackspace Technology's stock gained 6.7% to reach $1.44 during recent trading, while the company reported a quarterly earnings miss of ($0.06) EPS.
• Recent analyst activity indicates a downgrade to a "sell" rating, with several firms adjusting their price targets for RXT, now averaging $1.58.

Rackspace Technology, Inc. (NASDAQ:RXT - Get Free Report) CEO Amar Maletira sold 1,780,619 shares of the business's stock in a transaction that occurred on Monday, September 15th. The stock was sold at an average price of $1.35, for a total value of $2,403,835.65. Following the transaction, the chief executive officer directly owned 4,608,619 shares in the company, valued at approximately $6,221,635.65. This trade represents a 27.87% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink.

Rackspace Technology Stock Up 6.7%

Shares of RXT stock traded up $0.09 during trading on Wednesday, reaching $1.44. 3,175,160 shares of the company's stock were exchanged, compared to its average volume of 958,890. Rackspace Technology, Inc. has a twelve month low of $1.00 and a twelve month high of $3.41. The firm's fifty day moving average price is $1.32 and its 200-day moving average price is $1.41.

Rackspace Technology (NASDAQ:RXT - Get Free Report) last announced its quarterly earnings results on Thursday, August 7th. The company reported ($0.06) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.05) by ($0.01). The business had revenue of $666.30 million during the quarter, compared to analyst estimates of $658.86 million. During the same period last year, the company earned ($0.08) earnings per share. Rackspace Technology's revenue was down 2.7% on a year-over-year basis. Rackspace Technology has set its Q3 2025 guidance at -0.060--0.040 EPS.

Analyst Ratings Changes

Several equities research analysts have issued reports on RXT shares. Wall Street Zen downgraded shares of Rackspace Technology from a "hold" rating to a "sell" rating in a research report on Saturday, August 9th. Raymond James Financial restated a "market perform" rating on shares of Rackspace Technology in a research note on Monday, June 2nd. Finally, BMO Capital Markets lowered their price objective on Rackspace Technology from $1.75 to $1.40 and set a "market perform" rating on the stock in a research report on Tuesday, August 12th. Four analysts have rated the stock with a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Reduce" and an average target price of $1.58.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of RXT. Russell Investments Group Ltd. grew its stake in Rackspace Technology by 4,053.5% during the first quarter. Russell Investments Group Ltd. now owns 846,112 shares of the company's stock worth $1,430,000 after buying an additional 825,741 shares in the last quarter. Two Sigma Investments LP increased its holdings in Rackspace Technology by 1,692.6% in the 4th quarter. Two Sigma Investments LP now owns 406,621 shares of the company's stock worth $899,000 after purchasing an additional 383,938 shares in the last quarter. Jacobs Levy Equity Management Inc. raised its position in Rackspace Technology by 42.4% in the first quarter. Jacobs Levy Equity Management Inc. now owns 1,255,023 shares of the company's stock valued at $2,121,000 after purchasing an additional 373,875 shares during the last quarter. Geode Capital Management LLC boosted its stake in shares of Rackspace Technology by 17.9% during the second quarter. Geode Capital Management LLC now owns 2,064,549 shares of the company's stock valued at $2,643,000 after purchasing an additional 313,636 shares in the last quarter. Finally, JPMorgan Chase & Co. boosted its stake in shares of Rackspace Technology by 25.5% during the second quarter. JPMorgan Chase & Co. now owns 1,437,879 shares of the company's stock valued at $1,840,000 after purchasing an additional 292,249 shares in the last quarter. Institutional investors own 82.48% of the company's stock.

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.

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