Rackspace Technology (NASDAQ:RXT) Trading Up 7.3% After Insider Buying Activity

Rackspace Technology, Inc. (NASDAQ:RXT)’s share price shot up 7.3% on Tuesday after an insider bought additional shares in the company. The company traded as high as $2.65 and last traded at $2.65. 164,406 shares were traded during mid-day trading, a decline of 85% from the average session volume of 1,085,183 shares. The stock had previously closed at $2.47.

Specifically, Director Anthony C. Roberts purchased 19,455 shares of the business’s stock in a transaction that occurred on Friday, December 6th. The shares were acquired at an average cost of $2.60 per share, for a total transaction of $50,583.00. Following the transaction, the director now directly owns 161,930 shares of the company’s stock, valued at approximately $421,018. The trade was a 13.66 % increase in their position. The acquisition was disclosed in a filing with the SEC, which is available at this link.

Analysts Set New Price Targets

RXT has been the subject of several recent analyst reports. UBS Group increased their price target on Rackspace Technology from $2.10 to $2.30 and gave the stock a “neutral” rating in a report on Friday, August 16th. Barclays upped their price target on shares of Rackspace Technology from $1.00 to $2.00 and gave the company an “underweight” rating in a report on Monday, November 18th. One research analyst has rated the stock with a sell rating, four have issued a hold rating and one has issued a buy rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus price target of $2.47.

Rackspace Technology Stock Performance

The stock has a market capitalization of $603.06 million, a price-to-earnings ratio of -0.76 and a beta of 1.99. The company has a fifty day simple moving average of $2.58 and a two-hundred day simple moving average of $2.46.

Rackspace Technology (NASDAQ:RXT) last issued its quarterly earnings data on Tuesday, November 12th. The company reported ($0.04) EPS 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 the consensus estimate of $675.14 million. Rackspace Technology’s revenue for the quarter was down 7.7% on a year-over-year basis. During the same period in the previous year, the company earned ($0.04) EPS. As a group, equities analysts anticipate that Rackspace Technology, Inc. will post -0.27 earnings per share for the current year.

Institutional Investors Weigh In On Rackspace Technology

A number of institutional investors have recently modified their holdings of RXT. Creative Planning bought a new position in shares of Rackspace Technology during the 3rd quarter worth about $29,000. Allspring Global Investments Holdings LLC bought a new stake in shares of Rackspace Technology during the second quarter valued at approximately $40,000. US Bancorp DE raised its position in shares of Rackspace Technology by 10,766.2% during the third quarter. US Bancorp DE now owns 16,408 shares of the company’s stock worth $40,000 after purchasing an additional 16,257 shares during the period. Intech Investment Management LLC acquired a new stake in Rackspace Technology in the 3rd quarter valued at $50,000. Finally, FMR LLC increased its stake in Rackspace Technology by 437.5% during the 3rd quarter. FMR LLC now owns 31,154 shares of the company’s stock valued at $76,000 after purchasing an additional 25,358 shares in the last quarter. 82.48% of the stock is owned by institutional investors.

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.