Rackspace Technology (NASDAQ:RXT) Stock Price Down 9.4% – What’s Next?

Rackspace Technology, Inc. (NASDAQ:RXT)’s share price dropped 9.4% during trading on Monday . The company traded as low as $2.53 and last traded at $2.63. Approximately 283,317 shares were traded during mid-day trading, a decline of 66% from the average daily volume of 830,270 shares. The stock had previously closed at $2.90.

Wall Street Analysts Forecast Growth

Separately, Barclays upped their price target on shares of Rackspace Technology from $1.00 to $2.00 and gave the stock an “underweight” rating in a research note on Monday, November 18th. One equities research 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. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $2.47.

Rackspace Technology Stock Up 1.6 %

The firm has a fifty day moving average of $2.52 and a 200-day moving average of $2.50. The stock has a market capitalization of $596.23 million, a price-to-earnings ratio of -0.68 and a beta of 2.04.

Rackspace Technology (NASDAQ:RXT) last released its quarterly earnings results on Thursday, February 20th. The company reported ($0.02) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.04) by $0.02. The firm had revenue of $685.60 million for the quarter, compared to analyst estimates of $674.85 million.

Insider Activity

In related news, CTO Srini Koushik sold 19,470 shares of the stock in a transaction on Friday, November 29th. The stock was sold at an average price of $2.67, for a total transaction of $51,984.90. Following the sale, the chief technology officer now owns 1,026,279 shares of the company’s stock, valued at $2,740,164.93. This trade represents a 1.86 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Dharmendra Kumar Sinha sold 88,548 shares of Rackspace Technology stock in a transaction dated Friday, November 29th. The stock was sold at an average price of $2.67, for a total value of $236,423.16. Following the sale, the executive vice president now owns 2,334,166 shares of the company’s stock, valued at approximately $6,232,223.22. This represents a 3.65 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 209,322 shares of company stock worth $542,829 over the last ninety days. 2.00% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Rackspace Technology

A number of institutional investors have recently modified their holdings of RXT. Two Sigma Advisers LP raised its holdings in Rackspace Technology by 243.1% in the 4th quarter. Two Sigma Advisers LP now owns 264,200 shares of the company’s stock valued at $584,000 after acquiring an additional 187,200 shares during the last quarter. Two Sigma Investments LP grew its position in shares of Rackspace Technology by 1,692.6% in the fourth quarter. Two Sigma Investments LP now owns 406,621 shares of the company’s stock valued at $899,000 after purchasing an additional 383,938 shares during the period. ProShare Advisors LLC increased its stake in Rackspace Technology by 50.6% in the fourth quarter. ProShare Advisors LLC now owns 19,030 shares of the company’s stock valued at $42,000 after purchasing an additional 6,398 shares during the last quarter. Millennium Management LLC lifted its position in Rackspace Technology by 38.0% during the fourth quarter. Millennium Management LLC now owns 490,994 shares of the company’s stock worth $1,085,000 after buying an additional 135,140 shares during the period. Finally, Jacobs Levy Equity Management Inc. lifted its position in Rackspace Technology by 8.2% during the fourth quarter. Jacobs Levy Equity Management Inc. now owns 881,148 shares of the company’s stock worth $1,947,000 after buying an additional 66,524 shares during the period. Institutional investors and hedge funds 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.