Rackspace Technology, Inc. (NASDAQ:RXT) Receives Average Rating of "Reduce" from Analysts

Key Points

• Brokerages have assigned an average recommendation of "Reduce" for Rackspace Technology, Inc. (NASDAQ:RXT), with one sell rating and four hold ratings from analysts.
• Analysts have reduced target prices for the stock, with UBS Group lowering it to $1.90 and Barclays to $1.00.
• The company's recent quarterly earnings revealed a loss per share of ($0.06), which missed analysts' estimates but showed revenue of $666.30 million, beating expectations despite a 2.7% decline year-over-year.

Rackspace Technology, Inc. (NASDAQ:RXT - Get Free Report) has earned a consensus recommendation of "Reduce" from the five research firms that are currently covering the stock, Marketbeat.com reports. One research analyst has rated the stock with a sell rating and four have issued a hold rating on the company. The average 12-month price objective among brokerages that have issued ratings on the stock in the last year is $1.5750.

A number of analysts have recently issued reports on RXT shares. Barclays lowered their price target on Rackspace Technology from $2.00 to $1.00 and set an "underweight" rating on the stock in a research note on Friday, April 25th. Wall Street Zen lowered Rackspace Technology from a "hold" rating to a "sell" rating in a research note on Saturday, August 9th. UBS Group lowered their price objective on Rackspace Technology from $2.95 to $1.90 and set a "neutral" rating on the stock in a research note on Friday, May 9th. Royal Bank Of Canada lowered their price objective on Rackspace Technology from $3.00 to $2.00 and set a "sector perform" rating on the stock in a research note on Monday, May 12th. Finally, Raymond James Financial reissued a "market perform" rating on shares of Rackspace Technology in a research note on Monday, June 2nd.

Hedge Funds Weigh In On Rackspace Technology

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Cerity Partners LLC acquired a new position in shares of Rackspace Technology in the 1st quarter valued at $26,000. Balyasny Asset Management L.P. acquired a new position in shares of Rackspace Technology in the 4th quarter valued at $36,000. MetLife Investment Management LLC lifted its stake in shares of Rackspace Technology by 89.4% in the 4th quarter. MetLife Investment Management LLC now owns 17,539 shares of the company's stock valued at $39,000 after purchasing an additional 8,281 shares during the last quarter. ProShare Advisors LLC lifted its stake in shares of Rackspace Technology by 50.6% in 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 last quarter. Finally, Aquatic Capital Management LLC acquired a new position in shares of Rackspace Technology in the 4th quarter valued at $45,000. Institutional investors and hedge funds own 82.48% of the company's stock.

Rackspace Technology Stock Down 3.3%

Shares of Rackspace Technology stock traded down $0.04 on Tuesday, reaching $1.17. The company's stock had a trading volume of 796,359 shares, compared to its average volume of 824,967. The company has a market capitalization of $280.05 million, a P/E ratio of -0.72 and a beta of 2.06. Rackspace Technology has a 52-week low of $1.00 and a 52-week high of $3.41. The stock has a 50-day moving average price of $1.31 and a 200-day moving average price of $1.64.

Rackspace Technology (NASDAQ:RXT - Get Free Report) last posted its quarterly earnings data on Thursday, August 7th. The company reported ($0.06) EPS for the quarter, missing analysts' consensus estimates of ($0.05) by ($0.01). The firm had revenue of $666.30 million during the quarter, compared to analyst estimates of $658.86 million. Rackspace Technology's quarterly revenue was down 2.7% on a year-over-year basis. During the same period in the previous year, the business earned ($0.08) EPS.

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.