Wall Street Zen Downgrades Rackspace Technology (NASDAQ:RXT) to Sell

Key Points

• Rackspace Technology has been downgraded from a "hold" to a "sell" rating by Wall Street Zen, indicating a negative outlook for the stock.
• Several brokerages, including Royal Bank of Canada and UBS Group, have also lowered their price targets on the stock, with averages now around $1.63.
• Shares of Rackspace fell by 4.7% recently, with a current market cap of $287.24 million and a reported loss in quarterly earnings.

Wall Street Zen cut shares of Rackspace Technology (NASDAQ:RXT - Free Report) from a hold rating to a sell rating in a research report released on Saturday.

RXT has been the topic of a number of other research reports. Barclays reduced their target price on Rackspace Technology from $2.00 to $1.00 and set an "underweight" rating on the stock in a report on Friday, April 25th. Royal Bank Of Canada reduced their target price on Rackspace Technology from $3.00 to $2.00 and set a "sector perform" rating on the stock in a report on Monday, May 12th. Raymond James Financial reiterated a "market perform" rating on shares of Rackspace Technology in a report on Monday, June 2nd. Finally, UBS Group reduced their target price on Rackspace Technology from $2.95 to $1.90 and set a "neutral" rating on the stock in a report on Friday, May 9th. Two analysts have rated the stock with a sell rating and four have issued a hold rating to the company. According to MarketBeat.com, Rackspace Technology presently has a consensus rating of "Hold" and an average target price of $1.58.

Rackspace Technology Stock Up 10.9%

NASDAQ RXT traded up $0.13 during mid-day trading on Friday, hitting $1.28. The stock had a trading volume of 1,275,109 shares, compared to its average volume of 956,706. The company has a 50 day simple moving average of $1.31 and a 200 day simple moving average of $1.66. The company has a market cap of $302.67 million, a price-to-earnings ratio of -0.79 and a beta of 2.06. Rackspace Technology has a 52-week low of $1.00 and a 52-week high of $3.41.

Rackspace Technology (NASDAQ:RXT - Get Free Report) last released 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 business had revenue of $666.30 million during the quarter, compared to the consensus estimate of $658.86 million. During the same period last year, the firm earned ($0.08) earnings per share. The business's quarterly revenue was down 2.7% compared to the same quarter last year.

Institutional Investors Weigh In On Rackspace Technology

A number of institutional investors have recently added to or reduced their stakes in the company. Cerity Partners LLC purchased a new stake in shares of Rackspace Technology in the first quarter valued at $26,000. Quadrature Capital Ltd purchased a new stake in shares of Rackspace Technology in the second quarter valued at $26,000. Creative Planning increased its stake in shares of Rackspace Technology by 114.2% in the second quarter. Creative Planning now owns 25,715 shares of the company's stock worth $33,000 after acquiring an additional 13,708 shares during the last quarter. Balyasny Asset Management L.P. acquired a new position in shares of Rackspace Technology in the fourth quarter worth $36,000. Finally, 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 worth $39,000 after acquiring an additional 8,281 shares during the last quarter. 82.48% of the stock is currently 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.