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

Key Points

• Rackspace Technology, Inc. currently holds an average consensus rating of "Reduce" from five brokerages, with one analyst recommending a sell and four giving a hold.
• Company insiders have significantly sold shares, including CEO Amar Maletira, who sold over 1.7 million shares, reflecting a substantial decline in their ownership positions.
• Despite reporting a revenue of $666.3 million in the last quarter, Rackspace missed earnings expectations, posting an EPS of ($0.06) compared to the forecast of ($0.05).

Shares of Rackspace Technology, Inc. (NASDAQ:RXT - Get Free Report) have been given an average rating of "Reduce" by the five research firms that are covering the firm, MarketBeat reports. One equities research analyst has rated the stock with a sell recommendation and four have given a hold recommendation to the company. The average 12-month target price among brokerages that have issued ratings on the stock in the last year is $1.5750.

Several equities research analysts recently commented on RXT shares. Wall Street Zen upgraded Rackspace Technology from a "sell" rating to a "hold" rating in a report on Saturday, September 20th. 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.

Insiders Place Their Bets

In other news, Director Anthony Scott sold 40,000 shares of the stock in a transaction on Monday, September 8th. The stock was sold at an average price of $1.43, for a total transaction of $57,200.00. Following the transaction, the director directly owned 191,045 shares of the company's stock, valued at $273,194.35. This represents a 17.31% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CEO Amar Maletira sold 1,780,619 shares of Rackspace Technology stock in a transaction on Monday, September 15th. The stock was 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 position. The disclosure for this sale can be found here. 2.90% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Rackspace Technology

Institutional investors have recently made changes to their positions in the business. ProShare Advisors LLC boosted its position in shares of 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 acquiring an additional 6,398 shares during the last quarter. Bank of New York Mellon Corp raised its stake in Rackspace Technology by 4.7% during the first quarter. Bank of New York Mellon Corp now owns 179,092 shares of the company's stock valued at $303,000 after purchasing an additional 8,075 shares in the last quarter. Engineers Gate Manager LP lifted its position in Rackspace Technology by 47.1% during the second quarter. Engineers Gate Manager LP now owns 34,777 shares of the company's stock valued at $45,000 after purchasing an additional 11,141 shares during the last quarter. Creative Planning grew its stake in shares of Rackspace Technology by 114.2% in the 2nd quarter. Creative Planning now owns 25,715 shares of the company's stock worth $33,000 after buying an additional 13,708 shares in the last quarter. Finally, Cerity Partners LLC purchased a new position in shares of Rackspace Technology in the 1st quarter worth $26,000. Institutional investors own 82.48% of the company's stock.

Rackspace Technology Stock Up 2.2%

Shares of RXT opened at $1.41 on Wednesday. Rackspace Technology has a twelve month low of $1.00 and a twelve month high of $3.41. The company has a market capitalization of $337.50 million, a P/E ratio of -0.87 and a beta of 2.06. The firm has a 50 day moving average of $1.31 and a 200 day moving average of $1.36.

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

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