Rackspace Technology (NASDAQ:RXT) Shares Gap Up - Time to Buy?

Key Points

• Rackspace stock gapped up before Thursday trading — prior close $1.35, opened $1.6950 and last traded $2.1320 on volume of 79,805,066 shares.
• Analyst sentiment is weak: RBC cut its price target to $1.75 and Weiss reiterated a "sell (d-)", with a consensus rating of "Reduce" and an average target of $1.51 (four Hold, two Sell).
• Company insiders sold about 385,156 shares (~$537,246) in the last quarter; insiders now own 2.90% of the stock while institutional investors hold roughly 82.48%.

Rackspace Technology, Inc. (NASDAQ:RXT - Get Free Report)'s stock price gapped up prior to trading on Thursday . The stock had previously closed at $1.35, but opened at $1.6950. Rackspace Technology shares last traded at $2.1320, with a volume of 79,805,066 shares trading hands.

Wall Street Analyst Weigh In

RXT has been the topic of a number of recent analyst reports. Royal Bank Of Canada dropped their price objective on Rackspace Technology from $2.00 to $1.75 and set a "sector perform" rating on the stock in a research note on Monday, November 10th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Rackspace Technology in a research note on Thursday, January 22nd. Four equities research analysts have rated the stock with a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Reduce" and an average target price of $1.51.

Rackspace Technology Stock Performance

The company has a market cap of $549.30 million, a PE ratio of -2.07 and a beta of 2.18. The company's 50 day moving average price is $0.88 and its 200-day moving average price is $1.16.

Insider Transactions at Rackspace Technology

In other Rackspace Technology news, EVP Dharmendra Kumar Sinha sold 91,151 shares of the stock in a transaction dated Friday, November 28th. The shares were sold at an average price of $1.04, for a total transaction of $94,797.04. Following the completion of the transaction, the executive vice president owned 2,568,895 shares in the company, valued at $2,671,650.80. This trade represents a 3.43% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CFO Mark A. Marino sold 234,683 shares of the firm's stock in a transaction on Monday, February 23rd. The shares were sold at an average price of $1.63, for a total transaction of $382,533.29. Following the completion of the transaction, the chief financial officer directly owned 2,193,115 shares of the company's stock, valued at approximately $3,574,777.45. The trade was a 9.67% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 385,156 shares of company stock valued at $537,246 in the last quarter. Company insiders own 2.90% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in RXT. Vanguard Group Inc. increased its position in shares of Rackspace Technology by 6.1% during the third quarter. Vanguard Group Inc. now owns 6,288,882 shares of the company's stock valued at $8,867,000 after buying an additional 359,087 shares during the period. Geode Capital Management LLC raised its position in shares of Rackspace Technology by 4.2% in the 4th quarter. Geode Capital Management LLC now owns 2,408,000 shares of the company's stock worth $2,338,000 after acquiring an additional 96,760 shares in the last quarter. AustralianSuper Pty Ltd purchased a new position in shares of Rackspace Technology in the 3rd quarter valued at approximately $2,276,000. JPMorgan Chase & Co. lifted its stake in shares of Rackspace Technology by 1.8% in the 3rd quarter. JPMorgan Chase & Co. now owns 1,464,389 shares of the company's stock valued at $2,065,000 after purchasing an additional 26,510 shares during the period. Finally, Janus Henderson Group PLC boosted its position in shares of Rackspace Technology by 70.7% during the fourth quarter. Janus Henderson Group PLC now owns 1,050,353 shares of the company's stock valued at $1,020,000 after purchasing an additional 435,113 shares in the last quarter. 82.48% of the stock is owned by hedge funds and other institutional investors.

Rackspace Technology Company Profile

Rackspace Technology NASDAQ: RXT is a leading provider of managed multi-cloud solutions and services, specializing in the deployment, management and optimization of public and private cloud environments. The company helps organizations design and operate applications across platforms such as Amazon Web Services (AWS), Microsoft Azure, Google Cloud and its own private cloud infrastructure. Rackspace's core offerings include cloud migration, application modernization, data protection, security services and 24x7x365 operational support.

Beyond cloud hosting, Rackspace offers a range of professional services designed to accelerate digital transformation initiatives.

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