Rackspace Technology (NASDAQ:RXT) Shares Down 11.2% – What’s Next?

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

Analyst Upgrades and Downgrades

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

Rackspace Technology Trading Down 10.0 %

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

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

Insider Transactions at Rackspace Technology

In other Rackspace Technology news, CEO Amar Maletira sold 55,461 shares of the company’s stock in a transaction dated Tuesday, December 3rd. The shares were sold at an average price of $2.54, for a total transaction of $140,870.94. Following the completion of the sale, the chief executive officer now directly owns 4,928,523 shares in the company, valued at $12,518,448.42. This represents a 1.11 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director Anthony C. Roberts acquired 19,455 shares of the firm’s stock in a transaction dated Friday, December 6th. The stock was bought at an average price of $2.60 per share, for a total transaction of $50,583.00. Following the acquisition, the director now owns 161,930 shares of the company’s stock, valued at approximately $421,018. This trade represents a 13.66 % increase in their position. The disclosure for this purchase can be found here. Insiders sold 194,864 shares of company stock valued at $508,997 over the last three months. Company insiders own 2.00% of the company’s stock.

Hedge Funds Weigh In On Rackspace Technology

Hedge funds have recently modified their holdings of the company. Creative Planning bought a new stake in shares of Rackspace Technology in the third quarter worth about $29,000. US Bancorp DE raised its holdings in shares of Rackspace Technology by 10,766.2% during the third quarter. US Bancorp DE now owns 16,408 shares of the company’s stock valued at $40,000 after acquiring an additional 16,257 shares in the last quarter. Intech Investment Management LLC purchased a new stake in Rackspace Technology in the third quarter worth $50,000. FMR LLC boosted its holdings in Rackspace Technology by 437.5% in the third quarter. FMR LLC now owns 31,154 shares of the company’s stock valued at $76,000 after acquiring an additional 25,358 shares in the last quarter. Finally, Point72 Asia Singapore Pte. Ltd. purchased a new position in Rackspace Technology during the 3rd quarter valued at $81,000. Hedge funds and other institutional investors own 82.48% of the company’s stock.

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.