Rackspace Technology (NASDAQ:RXT) Shares Down 11.2% – Here’s What Happened

Shares of Rackspace Technology, Inc. (NASDAQ:RXT) were down 11.2% during trading 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.

Wall Street Analyst Weigh In

Separately, Barclays raised their target price 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 investment analyst has rated the stock with a sell rating, four have issued a hold rating and one has given a buy rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Hold” and a consensus price target of $2.47.

Rackspace Technology Trading Up 0.8 %

The stock has a market cap of $541.61 million, a price-to-earnings ratio of -0.68 and a beta of 2.02. The company has a fifty day simple moving average of $2.46 and a 200-day simple moving average of $2.46.

Rackspace Technology (NASDAQ:RXT) last released its quarterly earnings results on Tuesday, November 12th. The company reported ($0.04) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.07) by $0.03. The firm had revenue of $675.80 million for the quarter, compared to analyst estimates of $675.14 million. During the same quarter in the prior year, the firm earned ($0.04) EPS. The firm’s revenue was down 7.7% compared to the same quarter last year. As a group, analysts anticipate that Rackspace Technology, Inc. will post -0.27 earnings per share for the current year.

Insider Activity

In related news, Director Anthony C. Roberts bought 19,455 shares of the business’s stock in a transaction on 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 transaction, the director now directly owns 161,930 shares in the company, valued at $421,018. This represents a 13.66 % increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CTO Srini Koushik sold 19,470 shares of the business’s stock in a transaction on Friday, November 29th. The shares were sold at an average price of $2.67, for a total transaction of $51,984.90. Following the transaction, the chief technology officer now owns 1,026,279 shares in the company, valued at approximately $2,740,164.93. This represents a 1.86 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 194,864 shares of company stock worth $508,997 over the last quarter. Corporate insiders own 2.00% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. Franklin Resources Inc. bought a new stake in shares of Rackspace Technology in the 3rd quarter valued at approximately $443,000. Barclays PLC lifted its stake in Rackspace Technology by 86.1% in the third quarter. Barclays PLC now owns 109,997 shares of the company’s stock valued at $270,000 after acquiring an additional 50,896 shares during the last quarter. Public Employees Retirement System of Ohio grew its position in Rackspace Technology by 32.0% in the third quarter. Public Employees Retirement System of Ohio now owns 127,851 shares of the company’s stock worth $313,000 after acquiring an additional 30,983 shares in the last quarter. Jane Street Group LLC increased its stake in shares of Rackspace Technology by 27.4% during the 3rd quarter. Jane Street Group LLC now owns 773,454 shares of the company’s stock worth $1,895,000 after purchasing an additional 166,528 shares during the last quarter. Finally, Point72 Asset Management L.P. bought a new position in shares of Rackspace Technology during the 3rd quarter valued at $135,000. 82.48% of the stock is 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.