Royal Bank Of Canada Issues Pessimistic Forecast for Rackspace Technology (NASDAQ:RXT) Stock Price

Rackspace Technology (NASDAQ:RXT) had its price objective decreased by Royal Bank Of Canada from $2.00 to $1.75 in a research note issued to investors on Monday,Benzinga reports. The firm presently has a “sector perform” rating on the stock. Royal Bank Of Canada’s price objective indicates a potential upside of 40.00% from the company’s current price.

A number of other equities research analysts have also recently commented on RXT. Wall Street Zen upgraded shares of Rackspace Technology from a “sell” rating to a “hold” rating in a report on Saturday, September 20th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Rackspace Technology in a research report on Wednesday, October 8th. Finally, BMO Capital Markets dropped their price objective on shares of Rackspace Technology from $1.75 to $1.40 and set a “market perform” rating on the stock in a report on Tuesday, August 12th. Four research analysts have rated the stock with a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, Rackspace Technology presently has an average rating of “Reduce” and a consensus target price of $1.51.

Rackspace Technology Price Performance

RXT stock traded up $0.01 during midday trading on Monday, reaching $1.25. The company had a trading volume of 266,389 shares, compared to its average volume of 978,427. The firm has a 50-day moving average price of $1.47 and a 200-day moving average price of $1.35. Rackspace Technology has a 1 year low of $1.00 and a 1 year high of $3.41. The company has a market capitalization of $299.20 million, a P/E ratio of -1.16 and a beta of 2.07.

Rackspace Technology (NASDAQ:RXT) last released its quarterly earnings data on Thursday, November 6th. The company reported ($0.05) EPS for the quarter, hitting the consensus estimate of ($0.05). The company had revenue of $671.20 million during the quarter, compared to analysts’ expectations of $666.83 million. The firm’s quarterly revenue was down .7% on a year-over-year basis. During the same quarter in the prior year, the firm posted ($0.04) EPS. Rackspace Technology has set its Q4 2025 guidance at -0.050–0.030 EPS.

Insider Buying and Selling

In other news, Director Anthony Scott sold 40,000 shares of the firm’s stock in a transaction on Monday, September 8th. The stock was sold at an average price of $1.43, for a total transaction of $57,200.00. Following the transaction, the director owned 191,045 shares in the company, valued at approximately $273,194.35. This trade represents a 17.31% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, CEO Amar Maletira sold 1,780,619 shares of the company’s stock in a transaction on Monday, September 15th. The stock was sold at an average price of $1.35, for a total value of $2,403,835.65. Following the sale, the chief executive officer owned 4,608,619 shares of the company’s stock, valued at approximately $6,221,635.65. This represents a 27.87% decrease in their position. The disclosure for this sale is available in the SEC filing. Corporate insiders own 2.90% of the company’s stock.

Institutional Trading of Rackspace Technology

Institutional investors have recently bought and sold shares of the stock. Cerity Partners LLC acquired a new position in shares of Rackspace Technology in the 1st quarter valued at $26,000. Quadrature Capital Ltd acquired a new stake in shares of Rackspace Technology during the second quarter worth about $26,000. Savant Capital LLC acquired a new position in Rackspace Technology in the 3rd quarter worth approximately $33,000. Creative Planning raised its position in Rackspace Technology by 114.2% during the 2nd quarter. Creative Planning now owns 25,715 shares of the company’s stock worth $33,000 after buying an additional 13,708 shares during the last quarter. Finally, Jump Financial LLC acquired a new stake in Rackspace Technology during the 1st quarter valued at approximately $40,000. 82.48% of the stock is currently owned by institutional investors and hedge funds.

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.