Wall Street Zen Downgrades Rackspace Technology (NASDAQ:RXT) to Sell

Rackspace Technology (NASDAQ:RXT - Get Free Report) was downgraded by Wall Street Zen from a "hold" rating to a "sell" rating in a research note issued to investors on Friday.

A number of other brokerages have also commented on RXT. Royal Bank of Canada dropped their price target on Rackspace Technology from $3.00 to $2.00 and set a "sector perform" rating on the stock in a report on Monday, May 12th. Barclays lowered their price target on shares of Rackspace Technology from $2.00 to $1.00 and set an "underweight" rating on the stock in a report on Friday, April 25th. Raymond James restated a "market perform" rating on shares of Rackspace Technology in a research note on Monday. Finally, UBS Group dropped their price objective on shares of Rackspace Technology from $2.95 to $1.90 and set a "neutral" rating for the company in a report on Friday, May 9th. Two analysts have rated the stock with a sell rating and three have assigned a hold rating to the stock. According to data from MarketBeat, Rackspace Technology has an average rating of "Hold" and a consensus price target of $1.63.

Rackspace Technology Stock Performance

Shares of Rackspace Technology stock traded up $0.02 on Friday, reaching $1.18. 632,906 shares of the company's stock were exchanged, compared to its average volume of 932,605. The company has a market capitalization of $280.12 million, a P/E ratio of -0.30 and a beta of 2.04. The firm's 50-day moving average is $1.30 and its two-hundred day moving average is $2.02. Rackspace Technology has a 52 week low of $1.00 and a 52 week high of $3.41.

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

Insider Transactions at Rackspace Technology

In other news, CEO Amar Maletira sold 521,840 shares of Rackspace Technology stock in a transaction dated Monday, March 17th. The shares were sold at an average price of $1.87, for a total transaction of $975,840.80. Following the sale, the chief executive officer now owns 4,368,328 shares of the company's stock, valued at approximately $8,168,773.36. The trade was a 10.67% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Srini Koushik sold 73,972 shares of Rackspace Technology stock in a transaction that occurred on Monday, March 17th. The shares were sold at an average price of $1.87, for a total value of $138,327.64. Following the sale, the insider now directly owns 935,114 shares in the company, valued at approximately $1,748,663.18. The trade was a 7.33% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 792,403 shares of company stock worth $1,481,794. Company insiders own 2.90% of the company's stock.

Hedge Funds Weigh In On Rackspace Technology

Several institutional investors and hedge funds have recently added to or reduced their stakes in RXT. BNP Paribas Financial Markets bought a new position in shares of Rackspace Technology during the fourth quarter valued at $319,000. Invesco Ltd. boosted its position in Rackspace Technology by 1.6% in the fourth quarter. Invesco Ltd. now owns 610,261 shares of the company's stock worth $1,349,000 after purchasing an additional 9,825 shares during the last quarter. Millennium Management LLC grew its position in Rackspace Technology by 38.0% during the fourth quarter. Millennium Management LLC now owns 490,994 shares of the company's stock valued at $1,085,000 after buying an additional 135,140 shares during the period. Prudential Financial Inc. purchased a new stake in shares of Rackspace Technology in the 4th quarter worth $715,000. Finally, Raymond James Financial Inc. bought a new position in shares of Rackspace Technology in the fourth quarter worth about $855,000. Hedge funds and other institutional investors own 82.48% of the company's stock.

Rackspace Technology Company Profile

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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