Analysts Set Rackspace Technology, Inc. (NASDAQ:RXT) Price Target at $1.70

Rackspace Technology, Inc. (NASDAQ:RXT) has received an average recommendation of “Reduce” from the six ratings firms that are currently covering the firm, Marketbeat.com reports. Two equities research analysts have rated the stock with a sell rating and four have assigned a hold rating to the company. The average twelve-month price objective among brokerages that have issued a report on the stock in the last year is $1.70.

RXT has been the subject of several research analyst reports. Royal Bank Of Canada upped their price objective on Rackspace Technology from $1.75 to $2.50 and gave the company a “sector perform” rating in a report on Friday, February 27th. Weiss Ratings restated a “sell (d-)” rating on shares of Rackspace Technology in a report on Thursday, January 22nd.

Insider Buying and Selling at Rackspace Technology

In other news, EVP Dharmendra Kumar Sinha sold 188,123 shares of the company’s stock in a transaction on Wednesday, March 18th. The stock was sold at an average price of $1.81, for a total value of $340,502.63. Following the completion of the sale, the executive vice president owned 2,276,057 shares in the company, valued at $4,119,663.17. This represents a 7.63% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, CFO Mark A. Marino sold 14,058 shares of the company’s stock in a transaction on Wednesday, March 18th. The shares were sold at an average price of $1.81, for a total value of $25,444.98. Following the completion of the sale, the chief financial officer owned 2,158,874 shares of the company’s stock, valued at approximately $3,907,561.94. This trade represents a 0.65% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 502,440 shares of company stock valued at $867,173. Insiders own 2.90% of the company’s stock.

Institutional Investors Weigh In On Rackspace Technology

Several hedge funds have recently modified their holdings of RXT. AQR Capital Management LLC lifted its holdings in shares of Rackspace Technology by 228.6% during the first quarter. AQR Capital Management LLC now owns 264,565 shares of the company’s stock valued at $447,000 after purchasing an additional 184,058 shares during the last quarter. Dynamic Technology Lab Private Ltd purchased a new stake in shares of Rackspace Technology during the first quarter valued at $113,000. Geode Capital Management LLC lifted its holdings in shares of Rackspace Technology by 17.9% during the second quarter. Geode Capital Management LLC now owns 2,064,549 shares of the company’s stock valued at $2,643,000 after purchasing an additional 313,636 shares during the last quarter. Creative Planning lifted its holdings in shares of Rackspace Technology by 114.2% during the second quarter. Creative Planning now owns 25,715 shares of the company’s stock valued at $33,000 after purchasing an additional 13,708 shares during the last quarter. Finally, JPMorgan Chase & Co. lifted its holdings in shares of Rackspace Technology by 25.5% during the second quarter. JPMorgan Chase & Co. now owns 1,437,879 shares of the company’s stock valued at $1,840,000 after purchasing an additional 292,249 shares during the last quarter. 82.48% of the stock is owned by hedge funds and other institutional investors.

Rackspace Technology Stock Down 2.1%

Shares of Rackspace Technology stock opened at $1.42 on Friday. The firm has a market cap of $350.61 million, a price-to-earnings ratio of -1.49 and a beta of 1.98. The business has a fifty day simple moving average of $1.41 and a 200-day simple moving average of $1.21. Rackspace Technology has a fifty-two week low of $0.39 and a fifty-two week high of $2.74.

Rackspace Technology (NASDAQ:RXT) last announced its quarterly earnings data on Thursday, February 26th. The company reported ($0.01) earnings per share for the quarter, beating the consensus estimate of ($0.04) by $0.03. The firm had revenue of $682.80 million during the quarter, compared to analyst estimates of $672.56 million. Rackspace Technology has set its FY 2026 guidance at -0.200–0.15 EPS. Analysts anticipate that Rackspace Technology will post -0.18 earnings per share for the current fiscal year.

About Rackspace Technology

Rackspace Technology (NASDAQ: RXT) is a leading provider of managed multi-cloud solutions and services, specializing in the deployment, management and optimization of public and private cloud environments. The company helps organizations design and operate applications across platforms such as Amazon Web Services (AWS), Microsoft Azure, Google Cloud and its own private cloud infrastructure. Rackspace’s core offerings include cloud migration, application modernization, data protection, security services and 24x7x365 operational support.

Beyond cloud hosting, Rackspace offers a range of professional services designed to accelerate digital transformation initiatives.