Rackspace Technology (NASDAQ:RXT) Trading Up 5.2% – Still a Buy?

Rackspace Technology, Inc. (NASDAQ:RXT)’s stock price was up 5.2% during trading on Thursday . The company traded as high as $2.54 and last traded at $2.55. Approximately 227,271 shares traded hands during mid-day trading, a decline of 68% from the average daily volume of 702,383 shares. The stock had previously closed at $2.42.

Analyst Ratings Changes

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

Rackspace Technology Stock Performance

The firm has a market cap of $607.61 million, a price-to-earnings ratio of -0.77 and a beta of 2.02. The stock’s fifty day moving average is $2.42 and its two-hundred day moving average is $2.44.

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

Insider Buying and Selling at Rackspace Technology

In other news, CTO Srini Koushik sold 19,470 shares of the stock in a transaction that occurred on Friday, November 29th. The shares were sold at an average price of $2.67, for a total value of $51,984.90. Following the completion of the transaction, the chief technology officer now directly owns 1,026,279 shares in the company, valued at $2,740,164.93. This trade represents a 1.86 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Amar Maletira sold 55,461 shares of the business’s stock in a transaction that occurred on Tuesday, December 3rd. The stock was sold at an average price of $2.54, for a total value of $140,870.94. Following the sale, the chief executive officer now directly owns 4,928,523 shares in the company, valued at approximately $12,518,448.42. The trade was a 1.11 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 194,864 shares of company stock valued at $508,997 in the last quarter. Corporate insiders own 2.00% of the company’s stock.

Institutional Investors Weigh In On Rackspace Technology

A number of institutional investors and hedge funds have recently bought and sold shares of RXT. Renaissance Technologies LLC grew its holdings in shares of 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 during the last quarter. Jacobs Levy Equity Management Inc. boosted its position in shares of Rackspace Technology by 139.4% in the 3rd quarter. Jacobs Levy Equity Management Inc. now owns 814,624 shares of the company’s stock valued at $1,996,000 after purchasing an additional 474,299 shares during the period. US Bancorp DE increased its stake in Rackspace Technology by 10,766.2% in the 3rd quarter. US Bancorp DE now owns 16,408 shares of the company’s stock worth $40,000 after purchasing an additional 16,257 shares in the last quarter. Jane Street Group LLC raised its holdings in Rackspace Technology by 27.4% during the 3rd quarter. Jane Street Group LLC now owns 773,454 shares of the company’s stock worth $1,895,000 after buying an additional 166,528 shares during the period. Finally, FMR LLC raised its holdings in Rackspace Technology by 437.5% during the 3rd quarter. FMR LLC now owns 31,154 shares of the company’s stock worth $76,000 after buying an additional 25,358 shares during the period. 82.48% of the stock is owned by institutional investors and hedge funds.

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.