Rackspace Technology, Inc. (NASDAQ:RXT) Given Consensus Recommendation of "Reduce" by Brokerages

Key Points

• Rackspace Technology, Inc. has received a consensus recommendation of "Reduce" from six research firms, with two analysts issuing a sell rating and four a hold rating.
• After the company's latest earnings report, it reported a loss of ($0.06) per share, falling short of the consensus estimate, while revenue for the quarter was $666.30 million, slightly exceeding expectations.
• Significant insider selling has occurred, including Director Anthony Scott selling 40,000 shares and CEO Amar Maletira selling over 1.7 million shares, indicating a decrease in their ownership in the company.

Rackspace Technology, Inc. (NASDAQ:RXT - Get Free Report) has been assigned a consensus recommendation of "Reduce" from the six research firms that are currently covering the firm, Marketbeat.com reports. Two analysts have rated the stock with a sell rating and four have assigned a hold rating to the company. The average 1 year price objective among analysts that have issued a report on the stock in the last year is $1.5750.

Several analysts recently weighed in on RXT shares. Wall Street Zen raised shares of Rackspace Technology from a "sell" rating to a "hold" rating in a report on Saturday, September 20th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Rackspace Technology in a research note on Saturday. Finally, BMO Capital Markets dropped their price target on shares of Rackspace Technology from $1.75 to $1.40 and set a "market perform" rating on the stock in a research note on Tuesday, August 12th.

Rackspace Technology Stock Down 3.8%

Shares of NASDAQ:RXT opened at $1.76 on Friday. The firm's 50 day moving average price is $1.40 and its 200 day moving average price is $1.33. The stock has a market cap of $421.27 million, a price-to-earnings ratio of -1.09 and a beta of 2.09. Rackspace Technology has a fifty-two week low of $1.00 and a fifty-two week high of $3.41.

Rackspace Technology (NASDAQ:RXT - Get Free Report) last issued its earnings results on Thursday, August 7th. The company reported ($0.06) earnings per share for the quarter, missing the consensus estimate 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. The firm's quarterly revenue was down 2.7% compared to the same quarter last year. During the same quarter last year, the business posted ($0.08) earnings per share. Rackspace Technology has set its Q3 2025 guidance at -0.060--0.040 EPS.

Insider Activity at Rackspace Technology

In other news, Director Anthony Scott sold 40,000 shares of the stock in a transaction that occurred on Monday, September 8th. The stock was sold at an average price of $1.43, for a total value of $57,200.00. Following the completion of the sale, the director directly owned 191,045 shares of the company's stock, valued at approximately $273,194.35. This represents a 17.31% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Amar Maletira sold 1,780,619 shares of the stock in a transaction that occurred on Monday, September 15th. The shares were sold at an average price of $1.35, for a total value of $2,403,835.65. Following the completion of the sale, the chief executive officer directly owned 4,608,619 shares of the company's stock, valued at $6,221,635.65. The trade was a 27.87% decrease in their ownership of the stock. The disclosure for this sale can be found here. Corporate insiders own 2.90% of the company's stock.

Institutional Investors Weigh In On Rackspace Technology

Several hedge funds have recently modified their holdings of RXT. Cerity Partners LLC purchased a new position in Rackspace Technology in the first quarter worth $26,000. Quadrature Capital Ltd purchased a new position in shares of Rackspace Technology in the second quarter valued at $26,000. Creative Planning increased its position in shares of Rackspace Technology by 114.2% in the second quarter. Creative Planning now owns 25,715 shares of the company's stock valued at $33,000 after buying an additional 13,708 shares in the last quarter. Jump Financial LLC purchased a new position in shares of Rackspace Technology in the first quarter valued at $40,000. Finally, Engineers Gate Manager LP increased its position in Rackspace Technology by 47.1% during the 2nd quarter. Engineers Gate Manager LP now owns 34,777 shares of the company's stock worth $45,000 after purchasing an additional 11,141 shares in the last quarter. 82.48% of the stock is owned by institutional investors and hedge funds.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.