Rackspace Technology (NASDAQ:RXT) Stock Price Down 11.2% – Here’s Why

Rackspace Technology, Inc. (NASDAQ:RXT)’s stock price traded down 11.2% on Monday . The stock traded as low as $2.28 and last traded at $2.30. 527,849 shares traded hands during trading, a decline of 36% from the average session volume of 823,054 shares. The stock had previously closed at $2.59.

Analyst Upgrades and Downgrades

Separately, Barclays lifted their target price on Rackspace Technology from $1.00 to $2.00 and gave the stock an “underweight” rating in a report on Monday, November 18th. One investment analyst has rated the stock with a sell rating, four have given a hold rating and one has given a buy rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $2.47.

Rackspace Technology Price Performance

The business has a 50-day simple moving average of $2.47 and a 200-day simple moving average of $2.47. The firm has a market capitalization of $530.24 million, a PE ratio of -0.67 and a beta of 2.02.

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

Insiders Place Their Bets

In other Rackspace Technology news, EVP Dharmendra Kumar Sinha sold 23,357 shares of the stock in a transaction on Tuesday, December 3rd. The shares were sold at an average price of $2.54, for a total transaction of $59,326.78. Following the transaction, the executive vice president now directly owns 2,311,309 shares of the company’s stock, valued at $5,870,724.86. This trade represents a 1.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Anthony C. Roberts purchased 19,455 shares of the stock in a transaction dated Friday, December 6th. The stock was purchased at an average cost of $2.60 per share, for a total transaction of $50,583.00. Following the completion of the purchase, 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 ownership of the stock. The disclosure for this purchase can be found here. In the last ninety days, insiders sold 194,864 shares of company stock valued at $508,997. 2.00% of the stock is owned by insiders.

Institutional Investors Weigh In On Rackspace Technology

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Franklin Resources Inc. acquired a new position in Rackspace Technology in the third quarter valued at approximately $443,000. Barclays PLC lifted its stake in shares of Rackspace Technology by 86.1% in the 3rd quarter. Barclays PLC now owns 109,997 shares of the company’s stock valued at $270,000 after purchasing an additional 50,896 shares during the last quarter. Public Employees Retirement System of Ohio grew its holdings in shares of Rackspace Technology by 32.0% during the 3rd quarter. Public Employees Retirement System of Ohio now owns 127,851 shares of the company’s stock worth $313,000 after purchasing an additional 30,983 shares during the period. Jane Street Group LLC increased its position in shares of Rackspace Technology by 27.4% during the 3rd quarter. Jane Street Group LLC now owns 773,454 shares of the company’s stock worth $1,895,000 after purchasing an additional 166,528 shares during the last quarter. Finally, Point72 Asset Management L.P. purchased a new stake in Rackspace Technology in the 3rd quarter valued at about $135,000. 82.48% of the stock is currently owned by institutional investors and hedge funds.

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.