Rackspace Technology (NASDAQ:RXT) Sets New 52-Week High on Earnings Beat

Rackspace Technology, Inc. (NASDAQ:RXT)’s share price hit a new 52-week high during mid-day trading on Wednesday following a stronger than expected earnings report. The stock traded as high as $3.39 and last traded at $3.26, with a volume of 532325 shares changing hands. The stock had previously closed at $2.86.

The company reported ($0.04) earnings per share for the quarter, beating the consensus estimate of ($0.08) by $0.04. The company had revenue of $675.80 million for the quarter, compared to analyst estimates of $675.14 million. During the same quarter in the prior year, the company posted ($0.04) EPS. Rackspace Technology’s revenue for the quarter was down 7.7% on a year-over-year basis.

Wall Street Analyst Weigh In

Separately, UBS Group increased their target price on shares of Rackspace Technology from $2.10 to $2.30 and gave the company a “neutral” rating in a research report on Friday, August 16th. One research analyst has rated the stock with a sell rating, four have given a hold rating and one has given a buy rating to the stock. According to data from MarketBeat.com, Rackspace Technology has an average rating of “Hold” and a consensus price target of $2.34.

Insiders Place Their Bets

In related news, CEO Amar Maletira sold 52,206 shares of the business’s stock in a transaction that occurred on Wednesday, August 21st. The shares were sold at an average price of $2.35, for a total transaction of $122,684.10. Following the completion of the sale, the chief executive officer now directly owns 5,347,434 shares in the company, valued at approximately $12,566,469.90. The trade was a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Over the last ninety days, insiders sold 227,321 shares of company stock valued at $542,103. Insiders own 2.00% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in RXT. Renaissance Technologies LLC increased its holdings in Rackspace Technology by 23.7% in the 2nd quarter. Renaissance Technologies LLC now owns 1,339,200 shares of the company’s stock worth $3,991,000 after acquiring an additional 256,900 shares in the last quarter. Susquehanna Fundamental Investments LLC purchased a new stake in shares of Rackspace Technology during the first quarter worth $35,000. Public Employees Retirement System of Ohio grew its holdings in shares of Rackspace Technology by 30.1% during the first quarter. Public Employees Retirement System of Ohio now owns 133,484 shares of the company’s stock worth $211,000 after buying an additional 30,916 shares in the last quarter. Mitsubishi UFJ Trust & Banking Corp grew its holdings in shares of Rackspace Technology by 98.2% in the first quarter. Mitsubishi UFJ Trust & Banking Corp now owns 33,263 shares of the company’s stock valued at $51,000 after purchasing an additional 16,484 shares during the period. Finally, Allspring Global Investments Holdings LLC purchased a new stake in shares of Rackspace Technology in the second quarter valued at about $40,000. 82.48% of the stock is currently owned by institutional investors.

Rackspace Technology Price Performance

The stock’s fifty day moving average is $2.52 and its 200-day moving average is $2.38. The stock has a market cap of $721.04 million, a PE ratio of -0.86 and a beta of 1.97.

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.