Barclays Forecasts Strong Price Appreciation for Rackspace Technology (NASDAQ:RXT) Stock

Rackspace Technology (NASDAQ:RXT) had its target price raised by Barclays from $1.00 to $2.00 in a research report issued on Monday,Benzinga reports. The brokerage currently has an “underweight” rating on the stock. Barclays‘s price target would suggest a potential downside of 18.37% from the stock’s current price.

Separately, UBS Group increased their price objective on Rackspace Technology from $2.10 to $2.30 and gave the stock a “neutral” rating in a research report on Friday, August 16th. Two equities research analysts have rated the stock with a sell rating, four have given a hold rating and one has issued a buy rating to the stock. According to data from MarketBeat, Rackspace Technology presently has an average rating of “Hold” and an average price target of $2.29.

Rackspace Technology Price Performance

RXT stock opened at $2.45 on Monday. Rackspace Technology has a 12 month low of $1.22 and a 12 month high of $3.41. The company has a market cap of $557.55 million, a price-to-earnings ratio of -0.70 and a beta of 1.97. The company has a fifty day moving average price of $2.55 and a 200 day moving average price of $2.40.

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

Insider Transactions at Rackspace Technology

In other Rackspace Technology news, CEO Amar Maletira sold 52,206 shares of the business’s stock in a transaction 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 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 0.97 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. In the last three months, insiders sold 227,321 shares of company stock valued at $542,103. Corporate insiders own 2.00% of the company’s stock.

Institutional Trading of Rackspace Technology

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Renaissance Technologies LLC lifted its stake in shares of Rackspace Technology by 23.7% in the second quarter. Renaissance Technologies LLC now owns 1,339,200 shares of the company’s stock valued at $3,991,000 after purchasing an additional 256,900 shares during the period. Jacobs Levy Equity Management Inc. lifted its stake 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 valued at $1,996,000 after purchasing an additional 474,299 shares during the period. Jane Street Group LLC lifted its stake in shares of Rackspace Technology by 27.4% in the third quarter. Jane Street Group LLC now owns 773,454 shares of the company’s stock valued at $1,895,000 after purchasing an additional 166,528 shares during the period. Charles Schwab Investment Management Inc. lifted its stake in shares of Rackspace Technology by 7.6% in the third quarter. Charles Schwab Investment Management Inc. now owns 590,724 shares of the company’s stock valued at $1,447,000 after purchasing an additional 41,697 shares during the period. Finally, ClariVest Asset Management LLC lifted its stake in shares of Rackspace Technology by 2.8% in the second quarter. ClariVest Asset Management LLC now owns 379,721 shares of the company’s stock valued at $1,132,000 after purchasing an additional 10,281 shares during the period. Institutional investors and hedge funds 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.