Royal Bank of Canada Lowers Rackspace Technology (NASDAQ:RXT) Price Target to $2.00

Rackspace Technology (NASDAQ:RXT - Get Free Report) had its target price reduced by equities research analysts at Royal Bank of Canada from $3.00 to $2.00 in a research note issued on Monday,Benzinga reports. The firm presently has a "sector perform" rating on the stock. Royal Bank of Canada's target price suggests a potential upside of 61.29% from the stock's current price.

A number of other analysts also recently issued reports on the stock. Barclays cut their price objective on shares of Rackspace Technology from $2.00 to $1.00 and set an "underweight" rating for the company in a report on Friday, April 25th. UBS Group cut their price target on Rackspace Technology from $2.95 to $1.90 and set a "neutral" rating for the company in a research note on Friday, May 9th.

Rackspace Technology Price Performance

NASDAQ RXT traded down $0.02 during trading on Monday, reaching $1.24. 697,962 shares of the company's stock were exchanged, compared to its average volume of 923,103. Rackspace Technology has a fifty-two week low of $1.22 and a fifty-two week high of $3.41. The business has a 50 day moving average price of $1.52 and a 200-day moving average price of $2.17. The stock has a market capitalization of $294.36 million, a P/E ratio of -0.32 and a beta of 2.14.

Rackspace Technology (NASDAQ:RXT - Get Free Report) last posted its earnings results on Thursday, May 8th. The company reported ($0.06) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.08) by $0.02. The company had revenue of $665.40 million for the quarter, compared to analyst estimates of $657.98 million. During the same quarter in the prior year, the business posted ($0.11) EPS. The business's quarterly revenue was down 3.7% compared to the same quarter last year.

Insiders Place Their Bets

In related news, EVP Dharmendra Kumar Sinha sold 17,480 shares of the firm's stock in a transaction dated Monday, March 3rd. The stock was sold at an average price of $2.37, for a total value of $41,427.60. Following the sale, the executive vice president now directly owns 2,293,829 shares of the company's stock, valued at $5,436,374.73. This trade represents a 0.76% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, CEO Amar Maletira sold 521,840 shares of Rackspace Technology stock in a transaction dated Monday, March 17th. The shares were sold at an average price of $1.87, for a total value of $975,840.80. Following the completion of the transaction, the chief executive officer now owns 4,368,328 shares in the company, valued at approximately $8,168,773.36. This represents a 10.67% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 1,154,204 shares of company stock worth $2,384,960 over the last ninety days. Corporate insiders own 2.90% of the company's stock.

Institutional Trading of Rackspace Technology

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Cerity Partners LLC acquired a new position in Rackspace Technology in the 1st quarter worth about $26,000. Balyasny Asset Management L.P. bought a new stake in shares of Rackspace Technology during the fourth quarter worth about $36,000. MetLife Investment Management LLC increased its stake in shares of Rackspace Technology by 89.4% in the fourth quarter. MetLife Investment Management LLC now owns 17,539 shares of the company's stock valued at $39,000 after buying an additional 8,281 shares during the period. Jump Financial LLC acquired a new position in shares of Rackspace Technology in the first quarter valued at approximately $40,000. Finally, ProShare Advisors LLC raised its holdings in 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 buying an additional 6,398 shares during the last quarter. Institutional investors 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.