Rackspace Technology (NASDAQ:RXT) Stock Price Up 3.9% - Should You Buy?

Rackspace Technology, Inc. (NASDAQ:RXT - Get Free Report) shares shot up 3.9% on Wednesday . The stock traded as high as $1.34 and last traded at $1.33. 859,620 shares traded hands during trading, a decline of 8% from the average session volume of 936,455 shares. The stock had previously closed at $1.28.

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on RXT. Raymond James Financial restated a "market perform" rating on shares of Rackspace Technology in a research report on Monday, June 2nd. Royal Bank Of Canada reduced their price target on shares of Rackspace Technology from $3.00 to $2.00 and set a "sector perform" rating for the company in a research report on Monday, May 12th. Barclays reduced their price target on shares of Rackspace Technology from $2.00 to $1.00 and set an "underweight" rating for the company in a research report on Friday, April 25th. Wall Street Zen upgraded shares of Rackspace Technology from a "sell" rating to a "hold" rating in a research report on Friday, June 27th. Finally, UBS Group reduced their price target 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. One equities research analyst has rated the stock with a sell rating and four have issued a hold rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus price target of $1.63.

Rackspace Technology Stock Up 1.5%

The stock has a market cap of $320.48 million, a P/E ratio of -1.05 and a beta of 2.06. The business's 50-day simple moving average is $1.26 and its two-hundred day simple moving average is $1.84.

Rackspace Technology (NASDAQ:RXT - Get Free Report) last announced its quarterly earnings results on Thursday, May 8th. The company reported ($0.06) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.08) by $0.02. The firm had revenue of $665.40 million during the quarter, compared to analysts' expectations of $657.98 million. During the same period in the previous year, the company posted ($0.11) earnings per share. The company's quarterly revenue was down 3.7% compared to the same quarter last year.

Institutional Investors Weigh In On Rackspace Technology

A number of institutional investors and hedge funds have recently modified their holdings of RXT. Russell Investments Group Ltd. lifted its holdings in shares of Rackspace Technology by 4,053.5% in the first quarter. Russell Investments Group Ltd. now owns 846,112 shares of the company's stock worth $1,430,000 after buying an additional 825,741 shares in the last quarter. Raymond James Financial Inc. purchased a new stake in Rackspace Technology in the fourth quarter valued at approximately $855,000. Two Sigma Investments LP raised its stake in Rackspace Technology by 1,692.6% in the fourth quarter. Two Sigma Investments LP now owns 406,621 shares of the company's stock valued at $899,000 after purchasing an additional 383,938 shares in the last quarter. Jacobs Levy Equity Management Inc. raised its stake in Rackspace Technology by 42.4% in the first quarter. Jacobs Levy Equity Management Inc. now owns 1,255,023 shares of the company's stock valued at $2,121,000 after purchasing an additional 373,875 shares in the last quarter. Finally, Renaissance Technologies LLC raised its stake in Rackspace Technology by 24.0% in the fourth quarter. Renaissance Technologies LLC now owns 1,929,127 shares of the company's stock valued at $4,263,000 after purchasing an additional 373,627 shares in the last quarter. 82.48% of the stock is owned by hedge funds and other institutional investors.

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.