Rackspace Technology (NASDAQ:RXT) Issues Q1 Earnings Guidance

Rackspace Technology (NASDAQ:RXT - Get Free Report) issued an update on its first quarter earnings guidance on Wednesday morning. The company provided EPS guidance of ($0.14)-($0.12) for the period, compared to the consensus EPS estimate of ($0.13). The company issued revenue guidance of $680-$690 million, compared to the consensus revenue estimate of $684.21 million.

Rackspace Technology Trading Up 12.2 %

Shares of Rackspace Technology stock traded up $0.20 during trading hours on Wednesday, reaching $1.84. 1,787,282 shares of the company's stock were exchanged, compared to its average volume of 1,448,488. Rackspace Technology has a 52-week low of $1.05 and a 52-week high of $3.10. The company has a fifty day moving average of $1.79 and a 200-day moving average of $1.68. The firm has a market capitalization of $404.36 million, a price-to-earnings ratio of -0.47 and a beta of 1.94.

Rackspace Technology (NASDAQ:RXT - Get Free Report) last released its earnings results on Tuesday, March 12th. The company reported ($0.03) earnings per share for the quarter, topping the consensus estimate of ($0.04) by $0.01. The firm had revenue of $720.00 million for the quarter, compared to the consensus estimate of $714.74 million. Rackspace Technology had a negative return on equity of 10.18% and a negative net margin of 28.33%. The firm's revenue for the quarter was down 8.5% compared to the same quarter last year. During the same period in the prior year, the business posted $0.06 earnings per share. On average, equities research analysts anticipate that Rackspace Technology will post -0.38 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

RXT has been the subject of a number of research analyst reports. Raymond James dropped their price objective on Rackspace Technology from $3.50 to $3.00 and set an outperform rating for the company in a report on Wednesday, March 13th. Royal Bank of Canada restated a sector perform rating and set a $3.00 price target on shares of Rackspace Technology in a research note on Wednesday, March 13th. Evercore ISI reduced their price objective on Rackspace Technology from $3.00 to $2.00 and set an in-line rating on the stock in a research note on Wednesday, March 13th. Finally, BMO Capital Markets boosted their target price on Rackspace Technology from $1.50 to $2.50 and gave the stock a market perform rating in a report on Wednesday, March 13th. Two research analysts have rated the stock with a sell rating, four have given a hold rating and two have assigned a buy rating to the company. According to data from MarketBeat, Rackspace Technology currently has an average rating of Hold and an average target price of $2.31.

Insider Activity

In other Rackspace Technology news, CEO Amar Maletira sold 37,446 shares of the stock in a transaction that occurred on Tuesday, February 20th. The shares were sold at an average price of $1.92, for a total value of $71,896.32. Following the completion of the sale, the chief executive officer now owns 4,638,423 shares of the company's stock, valued at $8,905,772.16. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. In other Rackspace Technology news, CEO Amar Maletira sold 37,446 shares of the business's stock in a transaction on Tuesday, February 20th. The shares were sold at an average price of $1.92, for a total value of $71,896.32. Following the transaction, the chief executive officer now owns 4,638,423 shares in the company, valued at approximately $8,905,772.16. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Brian Lillie sold 139,701 shares of the company's stock in a transaction dated Thursday, January 25th. The shares were sold at an average price of $1.62, for a total transaction of $226,315.62. Following the completion of the transaction, the executive vice president now directly owns 1,608,258 shares of the company's stock, valued at $2,605,377.96. The disclosure for this sale can be found here. Over the last quarter, insiders sold 189,463 shares of company stock worth $318,164. 1.00% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Rackspace Technology

Hedge funds have recently bought and sold shares of the business. Virtu Financial LLC acquired a new position in shares of Rackspace Technology in the 4th quarter valued at approximately $26,000. ProShare Advisors LLC acquired a new stake in Rackspace Technology in the second quarter valued at $28,000. The Manufacturers Life Insurance Company bought a new position in Rackspace Technology during the 4th quarter valued at $29,000. Ensign Peak Advisors Inc acquired a new position in Rackspace Technology during the 3rd quarter worth $31,000. Finally, Verition Fund Management LLC bought a new stake in shares of Rackspace Technology in the 4th quarter worth about $32,000. Institutional investors and hedge funds 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.