Rackspace Technology (NASDAQ:RXT) Trading 8.8% Higher - Here's Why

Key Points

• Rackspace Technology shares jumped 8.8% to about $4.50 in mid-day trading, although trading volume was down 86% from the stock’s average daily volume.
• Analyst sentiment remains cautious: RBC raised its price target to $4.00 but maintained a “sector perform” rating, while the average analyst rating is “Reduce” with a $2.70 target price.
• The company missed quarterly earnings expectations, reporting a loss of $0.06 per share versus the expected $0.03 loss, though revenue of $678.1 million exceeded estimates of $660.83 million.

Rackspace Technology, Inc. (NASDAQ:RXT - Get Free Report)'s stock price rose 8.8% during mid-day trading on Monday . The company traded as high as $4.55 and last traded at $4.4950. Approximately 3,031,253 shares were traded during mid-day trading, a decline of 86% from the average daily volume of 22,367,447 shares. The stock had previously closed at $4.13.

Analyst Upgrades and Downgrades

A number of research firms have recently weighed in on RXT. Royal Bank Of Canada boosted their price objective on shares of Rackspace Technology from $2.50 to $4.00 and gave the company a "sector perform" rating in a research report on Wednesday, June 17th. Weiss Ratings reissued a "sell (d-)" rating on shares of Rackspace Technology in a research note on Tuesday, June 2nd. Two analysts have rated the stock with a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Reduce" and an average target price of $2.70.

Rackspace Technology Stock Performance

The stock has a fifty day moving average price of $5.33 and a 200-day moving average price of $3.02. The firm has a market cap of $1.20 billion, a PE ratio of -7.83 and a beta of 2.99.

Rackspace Technology (NASDAQ:RXT - Get Free Report) last announced its quarterly earnings results on Thursday, May 7th. The company reported ($0.06) earnings per share for the quarter, missing analysts' consensus estimates of ($0.03) by ($0.03). The business had revenue of $678.10 million for the quarter, compared to analysts' expectations of $660.83 million. Rackspace Technology has set its FY 2026 guidance at -0.200--0.150 EPS.

Insider Buying and Selling

In other Rackspace Technology news, CFO Mark A. Marino sold 48,099 shares of the firm's stock in a transaction dated Thursday, June 4th. The stock was sold at an average price of $5.56, for a total value of $267,430.44. Following the transaction, the chief financial officer directly owned 3,370,431 shares of the company's stock, valued at $18,739,596.36. This trade represents a 1.41% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 2.30% of the stock is owned by company insiders.

Institutional Investors Weigh In On Rackspace Technology

Large investors have recently modified their holdings of the stock. Wealthcare Advisory Partners LLC purchased a new stake in shares of Rackspace Technology during the 2nd quarter valued at about $72,000. Strategic Investment Solutions Inc. IL purchased a new position in shares of Rackspace Technology in the second quarter valued at $67,000. GK Wealth Management LLC acquired a new stake in Rackspace Technology during the 2nd quarter valued at $140,000. Essential Partners LLC grew its holdings in Rackspace Technology by 25,906.1% during the 1st quarter. Essential Partners LLC now owns 72,037 shares of the company's stock valued at $71,000 after purchasing an additional 71,760 shares in the last quarter. Finally, Arete Wealth Advisors LLC purchased a new stake in Rackspace Technology during the 1st quarter worth $219,000. Institutional investors and hedge funds own 82.48% of the company's stock.

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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