Rackspace Technology (NASDAQ:RXT) Issues Earnings Results

Key Points

• Rackspace beat quarterly estimates, reporting an adjusted loss of $0.06 per share versus the expected $0.08 loss, while revenue of $609.1 million topped the $574.0 million consensus.
• Analyst sentiment remains cautious: MarketBeat reports a consensus “Reduce” rating and a $4.00 price target, with one Hold and one Sell rating.
• Insiders sold 714,141 shares worth about $2.3 million over the past three months; the CEO and CFO said their sales were made under pre-arranged plans to cover tax withholding on vested equity awards.

Rackspace Technology (NASDAQ:RXT - Get Free Report) released its quarterly earnings results on Monday. The company reported ($0.06) EPS for the quarter, beating the consensus estimate of ($0.08) by $0.02, FiscalAI reports. The firm had revenue of $609.10 million for the quarter, compared to analysts' expectations of $573.96 million.

Rackspace Technology Price Performance

Rackspace Technology stock traded up $0.19 during mid-day trading on Monday, reaching $2.72. 7,916,932 shares of the company traded hands, compared to its average volume of 17,229,689. Rackspace Technology has a fifty-two week low of $0.39 and a fifty-two week high of $8.60. The company has a market capitalization of $693.25 million, a price-to-earnings ratio of -4.18 and a beta of 3.29. The firm's fifty day moving average is $3.32 and its two-hundred day moving average is $3.24.

Wall Street Analyst Weigh In

Several brokerages recently weighed in on RXT. Weiss Ratings restated a "sell (d-)" rating on shares of Rackspace Technology in a research note on Friday, August 28th. Wall Street Zen cut Rackspace Technology from a "hold" rating to a "sell" rating in a research note on Saturday, August 15th. One analyst has rated the stock with a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Reduce" and a consensus target price of $4.00.

Insider Activity at Rackspace Technology

In other news, CEO Gajakarnan Kandiah sold 498,728 shares of the business's stock in a transaction on Friday, September 4th. The shares were sold at an average price of $3.21, for a total transaction of $1,600,916.88. Following the sale, the chief executive officer directly owned 3,684,955 shares of the company's stock, valued at $11,828,705.55. The trade was a 11.92% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 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. Also, CFO Mark A. Marino sold 51,373 shares of the company's stock in a transaction on Wednesday, September 2nd. The shares were sold at an average price of $2.95, for a total value of $151,550.35. Following the completion of the transaction, the chief financial officer directly owned 2,865,853 shares in the company, valued at approximately $8,454,266.35. The trade was a 1.76% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 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. In the last three months, insiders sold 714,141 shares of company stock worth $2,299,799. Corporate insiders own 2.30% of the company's stock.

Rackspace Technology Company Profile

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.

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