Rackspace Technology (NASDAQ:RXT) Stock Price Up 8.2% – Still a Buy?

Rackspace Technology, Inc. (NASDAQ:RXT) shares traded up 8.2% during trading on Friday . The company traded as high as $2.52 and last traded at $2.58. 442,773 shares traded hands during mid-day trading, a decline of 44% from the average session volume of 794,191 shares. The stock had previously closed at $2.38.

Wall Street Analysts Forecast Growth

Separately, Barclays boosted their price objective on Rackspace Technology from $1.00 to $2.00 and gave the stock an “underweight” rating in a research report on Monday, November 18th. One equities research analyst has rated the stock with a sell rating, four have assigned a hold rating and one has issued a buy rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of $2.47.

Rackspace Technology Stock Up 9.5 %

The company has a market cap of $592.82 million, a P/E ratio of -0.75 and a beta of 2.02. The firm’s 50 day moving average is $2.42 and its two-hundred day moving average is $2.43.

Rackspace Technology (NASDAQ:RXT) last issued its quarterly earnings results on Tuesday, November 12th. The company reported ($0.04) earnings per share for the quarter, beating the consensus estimate of ($0.07) by $0.03. The company had revenue of $675.80 million during the quarter, compared to analyst estimates of $675.14 million. The company’s quarterly revenue was down 7.7% on a year-over-year basis. During the same period in the previous year, the company posted ($0.04) EPS. As a group, research analysts forecast that Rackspace Technology, Inc. will post -0.27 EPS for the current fiscal year.

Insider Activity at Rackspace Technology

In other Rackspace Technology news, EVP Dharmendra Kumar Sinha sold 88,548 shares of the firm’s stock in a transaction on Friday, November 29th. The shares were sold at an average price of $2.67, for a total value of $236,423.16. Following the completion of the sale, the executive vice president now directly owns 2,334,166 shares in the company, valued at approximately $6,232,223.22. This trade represents a 3.65 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CTO Srini Koushik sold 19,470 shares of the company’s stock in a transaction dated Friday, November 29th. The shares were sold at an average price of $2.67, for a total transaction of $51,984.90. Following the transaction, the chief technology officer now owns 1,026,279 shares in the company, valued at $2,740,164.93. This represents a 1.86 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 209,322 shares of company stock worth $542,829 over the last quarter. Company insiders own 2.00% of the company’s stock.

Hedge Funds Weigh In On Rackspace Technology

Several large investors have recently bought and sold shares of the stock. Empower Advisory Group LLC bought a new position in shares of Rackspace Technology in the fourth quarter valued at approximately $85,000. SG Americas Securities LLC grew its stake in Rackspace Technology by 64.7% in the 4th quarter. SG Americas Securities LLC now owns 56,778 shares of the company’s stock valued at $125,000 after purchasing an additional 22,311 shares during the period. Franklin Resources Inc. purchased a new stake in shares of Rackspace Technology during the 3rd quarter valued at $443,000. Barclays PLC raised its stake in shares of Rackspace Technology by 86.1% during the 3rd quarter. Barclays PLC now owns 109,997 shares of the company’s stock worth $270,000 after purchasing an additional 50,896 shares during the period. Finally, Public Employees Retirement System of Ohio boosted its holdings in shares of Rackspace Technology by 32.0% in the 3rd quarter. Public Employees Retirement System of Ohio now owns 127,851 shares of the company’s stock worth $313,000 after buying an additional 30,983 shares during 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.