Rackspace Technology (NASDAQ:RXT) Issues Q1 Earnings Guidance

Rackspace Technology (NASDAQ:RXTGet Free Report) issued an update on its first quarter earnings guidance on Wednesday morning. The company provided EPS guidance of ($0.14)-($0.12) for the period, compared to the consensus EPS estimate of ($0.13). The company issued revenue guidance of $680-$690 million, compared to the consensus revenue estimate of $684.21 million.

Wall Street Analysts Forecast Growth

A number of analysts have commented on the company. Royal Bank of Canada reaffirmed a sector perform rating and set a $3.00 price target on shares of Rackspace Technology in a research report on Wednesday, March 13th. Evercore ISI lowered their price target on Rackspace Technology from $3.00 to $2.00 and set an in-line rating for the company in a research report on Wednesday, March 13th. BMO Capital Markets lifted their price target on Rackspace Technology from $1.50 to $2.50 and gave the stock a market perform rating in a research report on Wednesday, March 13th. Finally, Raymond James lowered their price target on Rackspace Technology from $3.50 to $3.00 and set an outperform rating for the company in a research report on Wednesday, March 13th. Two research analysts have rated the stock with a sell rating, four have assigned a hold rating and two have issued a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of Hold and an average target price of $2.31.

Check Out Our Latest Report on RXT

Rackspace Technology Stock Up 6.5 %

Shares of RXT stock opened at $1.64 on Wednesday. The stock has a market cap of $360.41 million, a PE ratio of -0.42 and a beta of 1.94. The business has a 50-day simple moving average of $1.79 and a 200-day simple moving average of $1.68. Rackspace Technology has a 52-week low of $1.05 and a 52-week high of $3.10.

Rackspace Technology (NASDAQ:RXTGet Free Report) last issued its quarterly earnings data on Tuesday, March 12th. The company reported ($0.03) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.04) by $0.01. The business had revenue of $720.00 million during the quarter, compared to analysts’ expectations of $714.74 million. Rackspace Technology had a negative return on equity of 10.18% and a negative net margin of 28.33%. The company’s revenue for the quarter was down 8.5% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.06 EPS. Sell-side analysts anticipate that Rackspace Technology will post -0.38 earnings per share for the current fiscal year.

Insider Activity

In other news, CEO Amar Maletira sold 37,446 shares of the business’s stock in a transaction dated Tuesday, February 20th. The stock was sold at an average price of $1.92, for a total value of $71,896.32. Following the completion of the transaction, the chief executive officer now owns 4,638,423 shares of the company’s stock, valued at approximately $8,905,772.16. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. In related news, CEO Amar Maletira sold 37,446 shares of the company’s stock in a transaction dated Tuesday, February 20th. The stock was sold at an average price of $1.92, for a total value of $71,896.32. Following the completion of the transaction, the chief executive officer now owns 4,638,423 shares of the company’s stock, valued at approximately $8,905,772.16. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Brian Lillie sold 139,701 shares of the company’s stock in a transaction dated Thursday, January 25th. The stock was sold at an average price of $1.62, for a total value of $226,315.62. Following the completion of the transaction, the executive vice president now directly owns 1,608,258 shares of the company’s stock, valued at approximately $2,605,377.96. The disclosure for this sale can be found here. Insiders sold a total of 189,463 shares of company stock valued at $318,164 in the last quarter. 1.00% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Rackspace Technology

A number of large investors have recently bought and sold shares of RXT. PNC Financial Services Group Inc. increased its stake in Rackspace Technology by 693.1% during the 1st quarter. PNC Financial Services Group Inc. now owns 3,347 shares of the company’s stock worth $37,000 after buying an additional 2,925 shares in the last quarter. Point72 Hong Kong Ltd increased its stake in Rackspace Technology by 144.4% during the 2nd quarter. Point72 Hong Kong Ltd now owns 4,831 shares of the company’s stock worth $35,000 after buying an additional 2,854 shares in the last quarter. Quantbot Technologies LP purchased a new stake in Rackspace Technology during the 1st quarter worth approximately $79,000. Ensign Peak Advisors Inc purchased a new stake in Rackspace Technology during the 3rd quarter worth approximately $31,000. Finally, ProShare Advisors LLC purchased a new stake in Rackspace Technology during the 2nd quarter worth approximately $28,000. Institutional investors and hedge funds own 82.48% of the company’s stock.

Rackspace Technology Company Profile

(Get Free Report)

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.

Featured Articles

Receive News & Ratings for Rackspace Technology Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Rackspace Technology and related companies with MarketBeat.com's FREE daily email newsletter.