Rackspace Technology (NASDAQ:RXT) Shares Up 10.5% on Analyst Upgrade

Key Points

• Shares jumped 10.5% midday after Royal Bank of Canada raised its price target from $1.75 to $2.50 (RBC maintained a sector perform rating); the stock traded as high as $2.20 and last at $2.1550.
• Overall analyst sentiment remains negative — MarketBeat shows an average rating of "Reduce" with a $1.70 average price target, and Weiss Ratings recently reiterated a sell (d-) on the stock.
• CFO Mark A. Marino sold 234,683 shares at about $1.63 on Feb. 23, reducing his ownership by 9.67%; insiders own roughly 2.90% of the company.

Rackspace Technology, Inc. (NASDAQ:RXT - Get Free Report) traded up 10.5% during mid-day trading on Monday after Royal Bank Of Canada raised their price target on the stock from $1.75 to $2.50. Royal Bank Of Canada currently has a sector perform rating on the stock. Rackspace Technology traded as high as $2.20 and last traded at $2.1550. 25,658,673 shares changed hands during mid-day trading, a decline of 18% from the average session volume of 31,175,932 shares. The stock had previously closed at $1.95.

Separately, Weiss Ratings restated a "sell (d-)" rating on shares of Rackspace Technology in a report on Thursday, January 22nd. Four analysts have rated the stock with a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Reduce" and an average price target of $1.70.

Insider Activity

In related news, CFO Mark A. Marino sold 234,683 shares of the company's stock in a transaction on Monday, February 23rd. The stock was sold at an average price of $1.63, for a total transaction of $382,533.29. Following the completion of the sale, the chief financial officer owned 2,193,115 shares in the company, valued at approximately $3,574,777.45. This represents a 9.67% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. 2.90% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Rackspace Technology

Several large investors have recently made changes to their positions in RXT. AustralianSuper Pty Ltd purchased a new position in Rackspace Technology in the third quarter valued at about $2,276,000. Vanguard Group Inc. raised its holdings in shares of Rackspace Technology by 6.1% in the 3rd quarter. Vanguard Group Inc. now owns 6,288,882 shares of the company's stock worth $8,867,000 after purchasing an additional 359,087 shares during the period. JPMorgan Chase & Co. lifted its stake in Rackspace Technology by 1.8% in the third 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 last quarter. Engineers Gate Manager LP grew its holdings in Rackspace Technology by 47.1% during the second quarter. Engineers Gate Manager LP now owns 34,777 shares of the company's stock valued at $45,000 after purchasing an additional 11,141 shares during the period. Finally, BNP Paribas Financial Markets grew its holdings in Rackspace Technology by 25.4% during the second quarter. BNP Paribas Financial Markets now owns 119,493 shares of the company's stock valued at $153,000 after purchasing an additional 24,173 shares during the period. 82.48% of the stock is owned by hedge funds and other institutional investors.

Rackspace Technology Stock Up 10.5%

The firm has a market capitalization of $524.94 million, a PE ratio of -2.28 and a beta of 1.78. The stock has a 50-day simple moving average of $0.92 and a 200-day simple moving average of $1.17.

About Rackspace Technology

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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