CenterBook Partners LP Buys 1,967,867 Shares of Rackspace Technology, Inc. $RXT

Key Points

• CenterBook Partners initiated a stake in Rackspace Technology, buying 1,967,867 shares worth approximately $7.33 million, or about 0.77% of the company.
• Institutional investors collectively own 82.48% of Rackspace shares; several other firms also reported new or increased positions.
• Rackspace beat quarterly earnings and revenue estimates, but analysts’ average rating was “Reduce,” with a $4.00 price target. The stock was trading at $2.53 in the article.

CenterBook Partners LP bought a new stake in Rackspace Technology, Inc. (NASDAQ:RXT - Free Report) during the third quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor bought 1,967,867 shares of the company's stock, valued at approximately $7,330,000. CenterBook Partners LP owned about 0.77% of Rackspace Technology as of its most recent SEC filing.

A number of other large investors have also added to or reduced their stakes in the company. BlackRock Inc. bought a new stake in Rackspace Technology during the second quarter worth about $51,411,000. Janus Henderson Group PLC increased its position in shares of Rackspace Technology by 179.7% during the 1st quarter. Janus Henderson Group PLC now owns 2,937,670 shares of the company's stock valued at $2,878,000 after purchasing an additional 1,887,317 shares during the last quarter. Jupiter Topco LLC purchased a new position in shares of Rackspace Technology during the 2nd quarter valued at about $10,462,000. Ieq Capital LLC purchased a new position in shares of Rackspace Technology during the 2nd quarter valued at about $4,161,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. purchased a new position in shares of Rackspace Technology during the 2nd quarter valued at about $3,887,000. Hedge funds and other institutional investors own 82.48% of the company's stock.

Rackspace Technology Stock Performance

NASDAQ:RXT traded up $0.15 during trading hours on Friday, reaching $2.53. The company's stock had a trading volume of 3,906,929 shares, compared to its average volume of 4,571,182. The firm has a market capitalization of $644.82 million, a price-to-earnings ratio of -3.89 and a beta of 3.29. The firm has a 50-day simple moving average of $3.32 and a 200-day simple moving average of $3.24. Rackspace Technology, Inc. has a 1 year low of $0.39 and a 1 year high of $8.60.

Rackspace Technology (NASDAQ:RXT - Get Free Report) last posted its quarterly earnings results on Monday, August 10th. The company reported ($0.08) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.09) by $0.01. The business had revenue of $670.10 million for the quarter, compared to analysts' expectations of $646.00 million. Equities analysts anticipate that Rackspace Technology, Inc. will post -0.28 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, EVP Dharmendra Sinha sold 107,002 shares of the firm's stock in a transaction that occurred on Wednesday, September 2nd. The stock was sold at an average price of $2.95, for a total transaction of $315,655.90. Following the transaction, the executive vice president directly owned 3,263,429 shares in the company, valued at $9,627,115.55. This trade represents a 3.17% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 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, CEO Gajakarnan Kandiah sold 498,728 shares of Rackspace Technology stock in a transaction that occurred on Friday, September 4th. The stock was sold at an average price of $3.21, for a total value of $1,600,916.88. Following the completion of the transaction, the chief executive officer directly owned 3,684,955 shares in the company, valued at $11,828,705.55. This trade represents a 11.92% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 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 90 days, insiders sold 714,141 shares of company stock worth $2,299,799. Insiders own 2.30% of the company's stock.

Wall Street Analysts Forecast Growth

Several analysts have issued reports on the company. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Rackspace Technology in a research note on Friday, August 28th. Wall Street Zen cut shares of Rackspace Technology from a "hold" rating to a "sell" rating in a research report on Saturday, August 15th. One research analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of "Reduce" and an average price target of $4.00.

About Rackspace Technology

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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