Rackspace Technology (NASDAQ:RXT) Stock Rating Lowered by Wall Street Zen

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 lowered shares of Rackspace Technology (NASDAQ:RXT - Free Report) from a hold rating to a sell rating in a report released on Saturday morning.

Several other brokerages have also commented on RXT. Royal Bank Of Canada lowered their price objective on shares of Rackspace Technology from $3.00 to $2.00 and set a "sector perform" rating for the company in a report on Monday, May 12th. Barclays lowered their target price 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. Raymond James Financial reissued a "market perform" rating on shares of Rackspace Technology in a research report on Monday, June 2nd. Finally, UBS Group cut 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 report on Friday, May 9th. Two analysts have rated the stock with a sell rating and three have assigned a hold rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus target price of $1.63.

Rackspace Technology Stock Performance

RXT traded down $0.06 during midday trading on Friday, reaching $1.21. 1,207,773 shares of the company were exchanged, compared to its average volume of 888,340. The company's fifty day moving average price is $1.30 and its 200 day moving average price is $1.67. The company has a market cap of $287.24 million, a price-to-earnings ratio of -0.75 and a beta of 2.06. Rackspace Technology has a one year low of $1.00 and a one year high of $3.41.

Rackspace Technology (NASDAQ:RXT - Get Free Report) last released its earnings results on Thursday, August 7th. The company reported ($0.06) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.05) by ($0.01). The firm had revenue of $666.30 million during the quarter, compared to the consensus estimate of $658.86 million. During the same period in the previous year, the company posted ($0.08) earnings per share. The firm's quarterly revenue was down 2.7% compared to the same quarter last year.

Institutional Investors Weigh In On Rackspace Technology

Hedge funds have recently modified their holdings of the business. Intech Investment Management LLC raised its holdings in shares of Rackspace Technology by 45.4% in the second quarter. Intech Investment Management LLC now owns 51,692 shares of the company's stock worth $66,000 after buying an additional 16,152 shares during the last quarter. Creative Planning raised its holdings in shares of Rackspace Technology by 114.2% during the second quarter. Creative Planning now owns 25,715 shares of the company's stock worth $33,000 after purchasing an additional 13,708 shares during the last quarter. Geode Capital Management LLC raised its holdings in shares of Rackspace Technology by 17.9% during the second quarter. Geode Capital Management LLC now owns 2,064,549 shares of the company's stock worth $2,643,000 after purchasing an additional 313,636 shares during the last quarter. Strs Ohio purchased a new position in shares of Rackspace Technology during the first quarter worth $323,000. Finally, Dynamic Technology Lab Private Ltd purchased a new position in shares of Rackspace Technology during the first quarter worth $113,000. 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.