Insider Selling: Rackspace Technology (NASDAQ:RXT) CFO Sells $36,531.23 in Stock

Key Points

• Rackspace CFO Mark Marino sold 20,183 shares on March 2 at an average price of $1.81 for $36,531.23, trimming his stake by 0.92% to about 2,172,932 shares (≈$3.93M) per the SEC filing.
• Shares traded up to $2.22 that day with a market cap of ~$540.8M and a negative P/E; analysts have a consensus rating of "Reduce" with an average price target of $1.70 despite RBC raising its target to $2.50 and Weiss reaffirming a sell.

Rackspace Technology, Inc. (NASDAQ:RXT - Get Free Report) CFO Mark Marino sold 20,183 shares of the firm's stock in a transaction dated Monday, March 2nd. The stock was sold at an average price of $1.81, for a total transaction of $36,531.23. Following the completion of the transaction, the chief financial officer owned 2,172,932 shares in the company, valued at approximately $3,933,006.92. The trade was a 0.92% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website.

Rackspace Technology Price Performance

Shares of NASDAQ:RXT traded up $0.27 during trading on Monday, reaching $2.22. 31,740,842 shares of the company's stock traded hands, compared to its average volume of 59,821,368. The stock has a market capitalization of $540.77 million, a P/E ratio of -2.34 and a beta of 1.78. Rackspace Technology, Inc. has a 12 month low of $0.39 and a 12 month high of $2.49. The company has a 50 day moving average of $0.94 and a 200-day moving average of $1.18.

Analyst Ratings Changes

A number of analysts have recently weighed in on RXT shares. Royal Bank Of Canada increased their price target on Rackspace Technology from $1.75 to $2.50 and gave the stock a "sector perform" rating in a research report on Friday. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Rackspace Technology in a research report on Thursday, January 22nd. Four investment analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, Rackspace Technology has a consensus rating of "Reduce" and an average price target of $1.70.

Institutional Trading of Rackspace Technology

Several large investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. boosted its position in Rackspace Technology by 6.1% during the 3rd quarter. Vanguard Group Inc. now owns 6,288,882 shares of the company's stock worth $8,867,000 after acquiring an additional 359,087 shares during the period. Geode Capital Management LLC lifted its stake in shares of Rackspace Technology by 4.2% in the 4th quarter. Geode Capital Management LLC now owns 2,408,000 shares of the company's stock worth $2,338,000 after acquiring an additional 96,760 shares during the period. AustralianSuper Pty Ltd bought a new position in shares of Rackspace Technology in the third quarter valued at approximately $2,276,000. JPMorgan Chase & Co. increased its stake in shares of Rackspace Technology by 1.8% during the third quarter. JPMorgan Chase & Co. now owns 1,464,389 shares of the company's stock valued at $2,065,000 after acquiring an additional 26,510 shares during the period. Finally, Janus Henderson Group PLC raised its holdings in Rackspace Technology by 70.7% during the fourth quarter. Janus Henderson Group PLC now owns 1,050,353 shares of the company's stock worth $1,020,000 after purchasing an additional 435,113 shares in the last quarter. 82.48% of the stock is currently owned by institutional investors and hedge funds.

About Rackspace Technology

Rackspace Technology NASDAQ: RXT is a leading provider of managed multi-cloud solutions and services, specializing in the deployment, management and optimization of public and private cloud environments. The company helps organizations design and operate applications across platforms such as Amazon Web Services (AWS), Microsoft Azure, Google Cloud and its own private cloud infrastructure. Rackspace's core offerings include cloud migration, application modernization, data protection, security services and 24x7x365 operational support.

Beyond cloud hosting, Rackspace offers a range of professional services designed to accelerate digital transformation initiatives.

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