Rackspace Technology (NASDAQ:RXT) Raised to "Hold" at Wall Street Zen

Key Points

• Wall Street Zen upgraded Rackspace Technology from a "sell" rating to a "hold" rating in their latest research report.
• Rackspace Technology reported a quarterly earnings miss with an EPS of ($0.06), falling short of the consensus estimate of ($0.05), despite revenue beating expectations at $666.30 million.
• Institutional ownership of Rackspace Technology is significant, with 82.48% of shares currently held by institutional investors, indicating strong confidence among large stakeholders.

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

Several other research analysts also recently weighed in on the company. BMO Capital Markets dropped their target price on Rackspace Technology from $1.75 to $1.40 and set a "market perform" rating on the stock in a research note on Tuesday, August 12th. Raymond James Financial restated a "market perform" rating on shares of Rackspace Technology in a research note on Monday, June 2nd. Four analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, Rackspace Technology presently has an average rating of "Reduce" and a consensus target price of $1.58.

Rackspace Technology Stock Performance

RXT stock traded up $0.04 on Friday, hitting $1.48. 31,711 shares of the company's stock were exchanged, compared to its average volume of 963,263. Rackspace Technology has a 12-month low of $1.00 and a 12-month high of $3.41. The firm has a 50 day moving average price of $1.32 and a two-hundred day moving average price of $1.38. The stock has a market cap of $354.25 million, a P/E ratio of -0.92 and a beta of 2.06.

Rackspace Technology (NASDAQ:RXT - Get Free Report) last announced its earnings results on Thursday, August 7th. The company reported ($0.06) earnings per share for the quarter, missing the consensus estimate of ($0.05) by ($0.01). The company had revenue of $666.30 million during the quarter, compared to analysts' expectations of $658.86 million. During the same quarter last year, the business posted ($0.08) EPS. Rackspace Technology's revenue was down 2.7% compared to the same quarter last year. Rackspace Technology has set its Q3 2025 guidance at -0.060--0.040 EPS.

Insider Activity at Rackspace Technology

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

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in RXT. Cerity Partners LLC acquired a new position in shares of Rackspace Technology during the 1st quarter worth approximately $26,000. Quadrature Capital Ltd acquired a new position in shares of Rackspace Technology during the second quarter valued at approximately $26,000. Creative Planning raised its holdings in shares of Rackspace Technology by 114.2% during the second quarter. Creative Planning now owns 25,715 shares of the company's stock valued at $33,000 after acquiring an additional 13,708 shares during the last quarter. Jump Financial LLC acquired a new position in shares of Rackspace Technology during the first quarter valued at approximately $40,000. Finally, ProShare Advisors LLC increased its holdings in shares of Rackspace Technology by 50.6% in the fourth quarter. ProShare Advisors LLC now owns 19,030 shares of the company's stock valued at $42,000 after purchasing an additional 6,398 shares during the last quarter. 82.48% of the stock is owned by institutional investors and hedge funds.

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.