Rackspace Technology (NASDAQ:RXT) Updates Q4 2024 Earnings Guidance

Rackspace Technology (NASDAQ:RXT) issued an update on its fourth quarter 2024 earnings guidance on Friday morning. The company provided EPS guidance of -0.050–0.030 for the period, compared to the consensus EPS estimate of -0.040. The company issued revenue guidance of $668.0 million-$680.0 million, compared to the consensus revenue estimate of $674.9 million.

Wall Street Analysts Forecast Growth

Separately, Barclays raised their price target on 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 given a hold rating and one has assigned a buy rating to the company’s stock. Based on data from MarketBeat, Rackspace Technology presently has an average rating of “Hold” and an average price target of $2.47.

Rackspace Technology Price Performance

Shares of RXT stock traded up $0.05 during midday trading on Friday, reaching $2.44. 324,472 shares of the company traded hands, compared to its average volume of 741,454. The firm’s 50 day simple moving average is $2.45 and its two-hundred day simple moving average is $2.46. The firm has a market cap of $554.13 million, a PE ratio of -0.70 and a beta of 2.02. Rackspace Technology has a 1-year low of $1.45 and a 1-year high of $3.41.

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

Insider Activity at Rackspace Technology

In other news, EVP Dharmendra Kumar Sinha sold 88,548 shares of the business’s stock in a transaction on Friday, November 29th. The stock was sold at an average price of $2.67, for a total value of $236,423.16. Following the completion of the transaction, the executive vice president now directly owns 2,334,166 shares of the company’s stock, valued at $6,232,223.22. The trade was a 3.65 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, Director Anthony C. Roberts acquired 19,455 shares of the firm’s stock in a transaction that occurred on Friday, December 6th. The shares were bought at an average cost of $2.60 per share, for a total transaction of $50,583.00. Following the purchase, the director now owns 161,930 shares of the company’s stock, valued at approximately $421,018. The trade was a 13.66 % increase in their ownership of the stock. The disclosure for this purchase can be found here. In the last three months, insiders have sold 194,864 shares of company stock valued at $508,997. Insiders own 2.00% of the company’s stock.

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.