Rackspace Technology's (RXT) Sell (D-) Rating Reiterated at Weiss Ratings

Key Points

• Weiss Ratings has reiterated a "Sell (D-)" rating for Rackspace Technology (RXT), indicating ongoing concerns regarding the company's stock performance.
• Despite the negative rating from Weiss, Wall Street Zen has upgraded Rackspace from "Sell" to "Hold", showing mixed sentiments among analysts about the stock's future.
• The company's recent earnings showed a loss of ($0.06) per share, which missed estimates, while revenue declined by 2.7% year-over-year, reflecting challenges in maintaining profitability.

Rackspace Technology (NASDAQ:RXT - Get Free Report)'s stock had its "sell (d-)" rating reiterated by Weiss Ratings in a research report issued to clients and investors on Wednesday,Weiss Ratings reports.

Several other analysts also recently commented on the company. Wall Street Zen upgraded Rackspace Technology from a "sell" rating to a "hold" rating in a research note on Saturday, September 20th. BMO Capital Markets reduced their target price on Rackspace Technology from $1.75 to $1.40 and set a "market perform" rating for the company in a research note on Tuesday, August 12th. Four equities research analysts have rated the stock with a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Reduce" and a consensus target price of $1.58.

Rackspace Technology Stock Up 6.4%

RXT stock opened at $1.50 on Wednesday. The firm has a market cap of $359.04 million, a price-to-earnings ratio of -0.93 and a beta of 2.09. Rackspace Technology has a 12-month low of $1.00 and a 12-month high of $3.41. The company's fifty day simple moving average is $1.33 and its 200 day simple moving average is $1.34.

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 company had revenue of $666.30 million for the quarter, compared to analyst estimates of $658.86 million. The firm's revenue for the quarter was down 2.7% compared to the same quarter last year. During the same quarter last year, the firm posted ($0.08) EPS. Rackspace Technology has set its Q3 2025 guidance at -0.060--0.040 EPS.

Insider Transactions at Rackspace Technology

In related news, Director Anthony Scott sold 40,000 shares of the company's stock in a transaction dated Monday, September 8th. The shares were sold at an average price of $1.43, for a total value of $57,200.00. Following the sale, the director owned 191,045 shares in the company, valued at $273,194.35. This represents a 17.31% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Amar Maletira sold 1,780,619 shares of the company's stock in a transaction dated Monday, September 15th. The stock was sold at an average price of $1.35, for a total transaction of $2,403,835.65. Following the completion of the sale, the chief executive officer owned 4,608,619 shares in the company, valued at $6,221,635.65. This represents a 27.87% decrease in their position. The disclosure for this sale can be found here. Corporate insiders own 2.90% of the company's stock.

Institutional Investors Weigh In On Rackspace Technology

A number of institutional investors have recently added to or reduced their stakes in RXT. Bank of New York Mellon Corp grew its position in Rackspace Technology by 4.7% in the 1st quarter. Bank of New York Mellon Corp now owns 179,092 shares of the company's stock worth $303,000 after purchasing an additional 8,075 shares in the last quarter. Cerity Partners LLC bought a new stake in Rackspace Technology in the 1st quarter worth about $26,000. XTX Topco Ltd grew its position in Rackspace Technology by 234.1% in the 1st quarter. XTX Topco Ltd now owns 35,439 shares of the company's stock worth $60,000 after purchasing an additional 24,833 shares in the last quarter. Virtu Financial LLC bought a new stake in Rackspace Technology in the 1st quarter worth about $68,000. Finally, Nuveen LLC bought a new stake in Rackspace Technology in the 1st quarter worth about $257,000. 82.48% of the stock is owned by 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.

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