Jacobs Levy Equity Management Inc. Acquires 373,875 Shares of Rackspace Technology, Inc. $RXT

Key Points

• Jacobs Levy Equity Management Inc. increased its position in Rackspace Technology by 42.4%, owning 1,255,023 shares after purchasing an additional 373,875 shares this quarter.
• Analysts have a consensus rating of "Reduce" for Rackspace Technology, with BMO Capital Markets lowering the target price from $1.75 to $1.40.
• In a recent transaction, Director Anthony Scott sold 40,000 shares for $57,200, reducing his ownership by 17.31% to 191,045 shares.

Jacobs Levy Equity Management Inc. boosted its position in shares of Rackspace Technology, Inc. (NASDAQ:RXT - Free Report) by 42.4% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 1,255,023 shares of the company's stock after acquiring an additional 373,875 shares during the period. Jacobs Levy Equity Management Inc. owned 0.53% of Rackspace Technology worth $2,121,000 as of its most recent SEC filing.

Other hedge funds have also bought and sold shares of the company. Cerity Partners LLC bought a new stake in Rackspace Technology during the first quarter valued at approximately $26,000. Balyasny Asset Management L.P. bought a new stake in Rackspace Technology during the 4th quarter valued at $36,000. Jump Financial LLC purchased a new position in Rackspace Technology during the 1st quarter valued at $40,000. ProShare Advisors LLC increased its position in Rackspace Technology by 50.6% during the 4th quarter. ProShare Advisors LLC now owns 19,030 shares of the company's stock valued at $42,000 after purchasing an additional 6,398 shares during the period. Finally, Price T Rowe Associates Inc. MD increased its position in Rackspace Technology by 24.1% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 26,807 shares of the company's stock valued at $60,000 after purchasing an additional 5,214 shares during the period. 82.48% of the stock is currently owned by institutional investors.

Rackspace Technology Stock Performance

RXT traded down $0.02 during trading on Tuesday, reaching $1.35. 1,350,051 shares of the company traded hands, compared to its average volume of 915,443. The firm has a fifty day simple moving average of $1.32 and a 200 day simple moving average of $1.41. Rackspace Technology, Inc. has a 12-month low of $1.00 and a 12-month high of $3.41. The company has a market cap of $323.14 million, a P/E ratio of -0.83 and a beta of 2.06.

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

Analyst Ratings Changes

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

Insider Buying and Selling at Rackspace Technology

In related news, Director Anthony Scott sold 40,000 shares of the firm's stock in a transaction on Monday, September 8th. The shares were sold at an average price of $1.43, for a total value of $57,200.00. Following the completion of the transaction, the director directly owned 191,045 shares of the company's stock, valued at approximately $273,194.35. This trade represents a 17.31% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Company insiders own 2.90% of the company's stock.

Rackspace Technology 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.