Rackspace Technology (NASDAQ:RXT) Downgraded to Sell Rating by Wall Street Zen

Wall Street Zen downgraded shares of Rackspace Technology (NASDAQ:RXT - Free Report) from a hold rating to a sell rating in a report published on Friday.

A number of other brokerages also recently weighed in on RXT. UBS Group lowered their target price on shares of Rackspace Technology from $2.95 to $1.90 and set a "neutral" rating for the company in a research note on Friday, May 9th. Barclays lowered their price objective on Rackspace Technology from $2.00 to $1.00 and set an "underweight" rating for the company in a research report on Friday, April 25th. Royal Bank of Canada cut their target price on Rackspace Technology from $3.00 to $2.00 and set a "sector perform" rating on the stock in a research report on Monday, May 12th. Finally, Raymond James reaffirmed a "market perform" rating on shares of Rackspace Technology in a research note on Monday, June 2nd. Two equities research analysts have rated the stock with a sell rating and three have assigned a hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $1.63.

Rackspace Technology Trading Up 7.6%

NASDAQ:RXT traded up $0.09 during trading hours on Friday, hitting $1.27. 1,440,909 shares of the company were exchanged, compared to its average volume of 935,224. The stock has a market capitalization of $301.48 million, a price-to-earnings ratio of -0.33 and a beta of 2.04. Rackspace Technology has a one year low of $1.00 and a one year high of $3.41. The company has a fifty day simple moving average of $1.30 and a 200 day simple moving average of $2.01.

Rackspace Technology (NASDAQ:RXT - Get Free Report) last issued its quarterly earnings data 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 company 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 business earned ($0.11) earnings per share. Rackspace Technology's revenue was down 3.7% compared to the same quarter last year.

Insider Buying and Selling at Rackspace Technology

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

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in RXT. Strs Ohio acquired a new stake in shares of Rackspace Technology in the 1st quarter worth about $323,000. Dynamic Technology Lab Private Ltd bought a new stake in Rackspace Technology during the 1st quarter worth approximately $113,000. Jacobs Levy Equity Management Inc. raised its stake in shares of 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 worth $2,121,000 after purchasing an additional 373,875 shares during the last quarter. AQR Capital Management LLC lifted its holdings in shares of Rackspace Technology by 228.6% in the first quarter. AQR Capital Management LLC now owns 264,565 shares of the company's stock valued at $447,000 after purchasing an additional 184,058 shares in the last quarter. Finally, State of Wyoming bought a new position in shares of Rackspace Technology in the first quarter valued at approximately $200,000. 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.