BMO Capital Markets Has Lowered Expectations for Rackspace Technology (NASDAQ:RXT) Stock Price

Key Points

• BMO Capital Markets has lowered its price target for Rackspace Technology from $1.75 to $1.40, indicating a potential upside of 21.21% from the current price.
• Recent ratings from various analysts show a trend of reductions, with UBS Group and Barclays setting even lower price objectives of $1.90 and $1.00, respectively.
• The company's quarterly earnings report revealed a loss of ($0.06) EPS, missing estimates and showing a 2.7% decline in revenue compared to the previous year.

Rackspace Technology (NASDAQ:RXT - Free Report) had its target price cut by BMO Capital Markets from $1.75 to $1.40 in a research note released on Tuesday morning,Benzinga reports. They currently have a market perform rating on the stock.

Several other brokerages have also issued reports on RXT. UBS Group reduced their price objective on shares of Rackspace Technology from $2.95 to $1.90 and set a "neutral" rating on the stock in a report on Friday, May 9th. Raymond James Financial restated a "market perform" rating on shares of Rackspace Technology in a report on Monday, June 2nd. Barclays cut their price target on shares of 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 shares of Rackspace Technology from a "hold" rating to a "sell" rating in a research note on Saturday, August 9th. Finally, Royal Bank Of Canada cut their price target on shares of 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. Two research analysts have rated the stock with a sell rating and four have assigned a hold rating to the stock. Based on data from MarketBeat.com, Rackspace Technology currently has an average rating of "Hold" and an average target price of $1.58.

Rackspace Technology Stock Performance

Shares of RXT stock traded down $0.04 on Tuesday, hitting $1.17. 796,359 shares of the stock traded hands, compared to its average volume of 824,967. The firm's 50-day moving average price is $1.31 and its two-hundred day moving average price is $1.64. The stock has a market capitalization of $280.05 million, a PE ratio of -0.72 and a beta of 2.06. Rackspace Technology has a twelve month low of $1.00 and a twelve month high of $3.41.

Rackspace Technology (NASDAQ:RXT - Get Free Report) last announced its quarterly 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 firm had revenue of $666.30 million for the quarter, compared to analysts' expectations 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 firm posted ($0.08) earnings per share.

Hedge Funds Weigh In On Rackspace Technology

A number of institutional investors and hedge funds have recently made changes to their positions in RXT. Geode Capital Management LLC boosted its holdings in shares of Rackspace Technology by 17.9% in the second quarter. Geode Capital Management LLC now owns 2,064,549 shares of the company's stock valued at $2,643,000 after acquiring an additional 313,636 shares during the period. Renaissance Technologies LLC boosted its holdings in shares of Rackspace Technology by 24.0% in the fourth quarter. Renaissance Technologies LLC now owns 1,929,127 shares of the company's stock valued at $4,263,000 after acquiring an additional 373,627 shares during the period. JPMorgan Chase & Co. boosted its holdings in shares of Rackspace Technology by 25.5% in the second quarter. JPMorgan Chase & Co. now owns 1,437,879 shares of the company's stock valued at $1,840,000 after acquiring an additional 292,249 shares during the period. Jacobs Levy Equity Management Inc. boosted its holdings in shares of Rackspace Technology by 42.4% in the first quarter. Jacobs Levy Equity Management Inc. now owns 1,255,023 shares of the company's stock valued at $2,121,000 after acquiring an additional 373,875 shares during the period. Finally, D. E. Shaw & Co. Inc. boosted its holdings in shares of Rackspace Technology by 2.5% in the fourth quarter. D. E. Shaw & Co. Inc. now owns 1,203,806 shares of the company's stock valued at $2,660,000 after acquiring an additional 29,047 shares during the period. 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.