Rackspace Technology (NASDAQ:RXT) Shares Down 7.9% – Here’s Why

Shares of Rackspace Technology, Inc. (NASDAQ:RXT) fell 7.9% on Thursday . The company traded as low as $2.79 and last traded at $2.79. 730,589 shares traded hands during mid-day trading, a decline of 34% from the average session volume of 1,102,841 shares. The stock had previously closed at $3.03.

Wall Street Analyst Weigh In

Separately, UBS Group boosted their price target on Rackspace Technology from $2.10 to $2.30 and gave the company a “neutral” rating in a research note on Friday, August 16th. One equities research analyst has rated the stock with a sell rating, four have issued a hold rating and one has assigned a buy rating to the stock. Based on data from MarketBeat, Rackspace Technology has an average rating of “Hold” and an average target price of $2.34.

Rackspace Technology Price Performance

The stock has a market cap of $550.72 million, a P/E ratio of -0.69 and a beta of 1.97. The stock’s 50-day moving average is $2.55 and its two-hundred day moving average is $2.39.

Rackspace Technology (NASDAQ:RXT) last issued its earnings results on Tuesday, November 12th. The company reported ($0.04) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.08) by $0.04. The firm had revenue of $675.80 million during the quarter, compared to the consensus estimate of $675.14 million. During the same period last year, the firm posted ($0.04) earnings per share. The company’s revenue for the quarter was down 7.7% compared to the same quarter last year. On average, analysts anticipate that Rackspace Technology, Inc. will post -0.32 EPS for the current fiscal year.

Insider Activity at Rackspace Technology

In related news, CEO Amar Maletira sold 52,206 shares of the stock in a transaction on Wednesday, August 21st. The stock was sold at an average price of $2.35, for a total transaction of $122,684.10. Following the sale, the chief executive officer now owns 5,347,434 shares in the company, valued at approximately $12,566,469.90. This represents a 0.97 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. In the last quarter, 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

Hedge funds have recently bought and sold shares of the company. Barclays PLC boosted 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. Public Employees Retirement System of Ohio boosted its position in shares of Rackspace Technology by 32.0% during the third quarter. Public Employees Retirement System of Ohio now owns 127,851 shares of the company’s stock valued at $313,000 after buying an additional 30,983 shares during the period. Jane Street Group LLC grew its stake in shares of Rackspace Technology by 27.4% during the third quarter. Jane Street Group LLC now owns 773,454 shares of the company’s stock valued at $1,895,000 after buying an additional 166,528 shares during the last quarter. Point72 Asset Management L.P. purchased a new stake in shares of Rackspace Technology in the third quarter worth approximately $135,000. Finally, Jacobs Levy Equity Management Inc. raised its holdings in shares of Rackspace Technology by 139.4% in the third quarter. Jacobs Levy Equity Management Inc. now owns 814,624 shares of the company’s stock worth $1,996,000 after buying an additional 474,299 shares during the period. Institutional investors own 82.48% of the company’s stock.

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.