Rackspace Technology (NASDAQ:RXT) Shares Gap Up Following Better-Than-Expected Earnings

Rackspace Technology, Inc. (NASDAQ:RXT)’s stock price gapped up before the market opened on Friday following a better than expected earnings announcement. The stock had previously closed at $2.24, but opened at $2.36. Rackspace Technology shares last traded at $2.43, with a volume of 333,436 shares trading hands.

The company reported ($0.08) EPS for the quarter, beating the consensus estimate of ($0.11) by $0.03. The company had revenue of $684.90 million for the quarter, compared to analyst estimates of $669.10 million.

Insider Buying and Selling at Rackspace Technology

In other Rackspace Technology news, EVP Dharmendra Kumar Sinha sold 149,249 shares of the firm’s stock in a transaction dated Thursday, July 25th. The shares were sold at an average price of $2.36, for a total transaction of $352,227.64. Following the transaction, the executive vice president now owns 2,466,593 shares of the company’s stock, valued at approximately $5,821,159.48. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. In other news, insider Kellie Teal-Guess sold 61,393 shares of Rackspace Technology stock in a transaction that occurred on Thursday, May 16th. The shares were sold at an average price of $2.13, for a total value of $130,767.09. Following the transaction, the insider now owns 909,775 shares of the company’s stock, valued at approximately $1,937,820.75. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Dharmendra Kumar Sinha sold 149,249 shares of Rackspace Technology stock in a transaction that occurred on Thursday, July 25th. The stock was sold at an average price of $2.36, for a total transaction of $352,227.64. Following the completion of the transaction, the executive vice president now directly owns 2,466,593 shares in the company, valued at approximately $5,821,159.48. The disclosure for this sale can be found here. 1.00% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Rackspace Technology

Hedge funds have recently made changes to their positions in the business. Charles Schwab Investment Management Inc. boosted its holdings in shares of Rackspace Technology by 35.7% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 2,535,746 shares of the company’s stock worth $5,071,000 after buying an additional 667,329 shares during the period. Federated Hermes Inc. boosted its holdings in shares of Rackspace Technology by 2.1% in the fourth quarter. Federated Hermes Inc. now owns 757,609 shares of the company’s stock worth $1,515,000 after buying an additional 15,803 shares during the period. CastleKnight Management LP acquired a new position in shares of Rackspace Technology in the fourth quarter worth about $1,201,000. ClariVest Asset Management LLC boosted its holdings 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 worth $1,132,000 after buying an additional 10,281 shares during the period. Finally, GSA Capital Partners LLP acquired a new position in shares of Rackspace Technology in the first quarter worth about $531,000. Institutional investors and hedge funds own 82.48% of the company’s stock.

Rackspace Technology Price Performance

The firm’s fifty day simple moving average is $2.47 and its 200 day simple moving average is $2.04. The company has a market capitalization of $528.29 million, a price-to-earnings ratio of -0.61 and a beta of 1.98.

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.