Rackspace Technology (NASDAQ:RXT) Trading Up 7.4% – Still a Buy?

Rackspace Technology, Inc. (NASDAQ:RXT)’s share price rose 7.4% during trading on Monday . The company traded as high as $2.77 and last traded at $2.77. Approximately 55,788 shares traded hands during mid-day trading, a decline of 95% from the average daily volume of 1,096,131 shares. The stock had previously closed at $2.58.

Analyst Upgrades and Downgrades

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

Rackspace Technology Price Performance

The stock has a 50-day moving average of $2.56 and a 200-day moving average of $2.43.

Rackspace Technology (NASDAQ:RXT) last released its quarterly earnings results on Tuesday, November 12th. The company reported ($0.04) earnings per share for the quarter, beating the consensus estimate 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 business earned ($0.04) EPS. The business’s revenue was down 7.7% on a year-over-year basis. As a group, analysts expect that Rackspace Technology, Inc. will post -0.27 EPS for the current fiscal year.

Insider Buying and Selling at Rackspace Technology

In other news, CEO Amar Maletira sold 84,823 shares of the company’s stock in a transaction dated Monday, September 30th. The stock was sold at an average price of $2.42, for a total value of $205,271.66. Following the completion of the transaction, the chief executive officer now directly owns 5,158,399 shares in the company, valued at approximately $12,483,325.58. This represents a 1.62 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 2.00% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Rackspace Technology

A number of large investors have recently modified their holdings of the company. The Manufacturers Life Insurance Company raised its position in Rackspace Technology by 44.7% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 30,019 shares of the company’s stock worth $89,000 after purchasing an additional 9,275 shares during the period. ClariVest Asset Management LLC grew its stake in shares of Rackspace Technology by 2.8% during the second quarter. ClariVest Asset Management LLC now owns 379,721 shares of the company’s stock valued at $1,132,000 after buying an additional 10,281 shares during the last quarter. Creative Planning purchased a new position in shares of Rackspace Technology in the third quarter worth about $29,000. Allspring Global Investments Holdings LLC bought a new stake in shares of Rackspace Technology in the 2nd quarter valued at about $40,000. Finally, SG Americas Securities LLC boosted its holdings in Rackspace Technology by 64.7% during the 3rd quarter. SG Americas Securities LLC now owns 34,467 shares of the company’s stock valued at $84,000 after acquiring an additional 13,543 shares during the period. 82.48% of the stock is owned by hedge funds and other institutional investors.

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.