Rackspace Technology (NASDAQ:RXT) Price Target Cut to $2.00 by Analysts at Royal Bank of Canada

Rackspace Technology (NASDAQ:RXT - Get Free Report) had its target price cut by equities researchers at Royal Bank of Canada from $3.00 to $2.00 in a note issued to investors on Monday,Benzinga reports. The firm presently has a "sector perform" rating on the stock. Royal Bank of Canada's target price would suggest a potential upside of 47.60% from the stock's current price.

RXT has been the topic of several other research reports. Barclays dropped their target price on shares of Rackspace Technology from $2.00 to $1.00 and set an "underweight" rating on the stock in a research report on Friday, April 25th. UBS Group decreased their target price on shares of Rackspace Technology from $2.95 to $1.90 and set a "neutral" rating for the company in a research note on Friday.

Rackspace Technology Stock Up 8.0%

Shares of NASDAQ RXT traded up $0.10 during trading hours on Monday, hitting $1.36. 770,452 shares of the stock were exchanged, compared to its average volume of 927,497. The company has a market cap of $321.66 million, a PE ratio of -0.35 and a beta of 2.14. The firm has a fifty day moving average price of $1.61 and a 200-day moving average price of $2.21. Rackspace Technology has a 12 month low of $1.24 and a 12 month high of $3.41.

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

Insider Activity

In other news, insider Srini Koushik sold 73,972 shares of the business's stock in a transaction that occurred on Monday, March 17th. The shares were sold at an average price of $1.87, for a total value of $138,327.64. Following the sale, the insider now directly owns 935,114 shares of the company's stock, valued at approximately $1,748,663.18. The trade was a 7.33% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Mark A. Marino sold 94,571 shares of Rackspace Technology stock in a transaction that occurred on Friday, February 28th. The shares were sold at an average price of $2.34, for a total transaction of $221,296.14. Following the completion of the transaction, the chief financial officer now owns 1,995,033 shares of the company's stock, valued at $4,668,377.22. This trade represents a 4.53% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 1,154,204 shares of company stock valued at $2,384,960. Company insiders own 2.00% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. 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 boosted its holdings 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 buying an additional 8,281 shares in the last quarter. ProShare Advisors LLC boosted its holdings 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 buying an additional 6,398 shares in the last quarter. Finally, Aquatic Capital Management LLC purchased a new stake in Rackspace Technology in the 4th quarter valued at $45,000. Hedge funds and other institutional investors own 82.48% of the company's stock.

About Rackspace Technology

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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