Wall Street Zen Upgrades Rackspace Technology (NASDAQ:RXT) to Hold

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 analysts at Wall Street Zen from a "sell" rating to a "hold" rating in a research report issued on Saturday.

RXT has been the subject of a number of other research reports. BMO Capital Markets decreased their price objective on shares of Rackspace Technology from $1.75 to $1.40 and set a "market perform" rating for the company in a report on Tuesday, August 12th. Raymond James Financial restated a "market perform" rating on shares of Rackspace Technology in a research report on Monday, June 2nd. Four research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Reduce" and an average target price of $1.58.

Rackspace Technology Price Performance

Rackspace Technology stock opened at $1.44 on Friday. The company has a market cap of $344.68 million, a PE ratio of -0.89 and a beta of 2.06. The company has a fifty day moving average price of $1.32 and a two-hundred day moving average price of $1.40. Rackspace Technology has a 12 month low of $1.00 and a 12 month high of $3.41.

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

Insider Activity

In other Rackspace Technology news, Director Anthony Scott sold 40,000 shares of the business's stock in a transaction dated Monday, September 8th. The shares were sold at an average price of $1.43, for a total transaction of $57,200.00. Following the sale, the director directly owned 191,045 shares in the company, valued at approximately $273,194.35. The trade was a 17.31% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Amar Maletira sold 1,780,619 shares of the business'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 sale, the chief executive officer owned 4,608,619 shares in the company, valued at $6,221,635.65. This trade represents a 27.87% decrease in their ownership of the stock. The disclosure for this sale can be found here. Company insiders own 2.90% of the company's stock.

Institutional Trading of Rackspace Technology

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Geode Capital Management LLC raised its position in shares of Rackspace Technology by 17.9% during the 2nd quarter. Geode Capital Management LLC now owns 2,064,549 shares of the company's stock worth $2,643,000 after buying an additional 313,636 shares in the last quarter. JPMorgan Chase & Co. raised its position in shares of Rackspace Technology by 25.5% during the 2nd quarter. JPMorgan Chase & Co. now owns 1,437,879 shares of the company's stock worth $1,840,000 after buying an additional 292,249 shares in the last quarter. Jacobs Levy Equity Management Inc. raised its holdings in shares of Rackspace Technology by 42.4% in the 1st 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 in the last quarter. Russell Investments Group Ltd. raised its holdings in shares of Rackspace Technology by 4,053.5% in the 1st quarter. Russell Investments Group Ltd. now owns 846,112 shares of the company's stock worth $1,430,000 after purchasing an additional 825,741 shares in the last quarter. Finally, Northern Trust Corp raised its holdings in shares of Rackspace Technology by 5.9% in the 4th quarter. Northern Trust Corp now owns 589,177 shares of the company's stock worth $1,302,000 after purchasing an additional 32,716 shares in the last quarter. 82.48% of the stock is currently owned by institutional investors.

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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