Rackspace Technology (NASDAQ:RXT) Trading Up 7.2% – Still a Buy?

Rackspace Technology, Inc. (NASDAQ:RXT) shares were up 7.2% during trading on Friday . The company traded as high as $2.54 and last traded at $2.53. Approximately 1,023,437 shares changed hands during trading, an increase of 42% from the average daily volume of 721,513 shares. The stock had previously closed at $2.36.

Analyst Ratings Changes

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 report on Monday, November 18th. One research analyst has rated the stock with a sell rating, four have issued a hold rating and one has issued a buy rating to the stock. According to data from MarketBeat, Rackspace Technology currently has an average rating of “Hold” and a consensus price target of $2.47.

Rackspace Technology Stock Up 11.0 %

The firm’s 50-day simple moving average is $2.46 and its 200-day simple moving average is $2.47. The firm has a market capitalization of $596.23 million, a P/E ratio of -0.75 and a beta of 2.02.

Rackspace Technology (NASDAQ:RXT) last announced its earnings results on Tuesday, November 12th. The company reported ($0.04) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.07) by $0.03. The company had revenue of $675.80 million during the quarter, compared to analysts’ expectations of $675.14 million. During the same quarter last year, the firm posted ($0.04) earnings per share. The firm’s revenue was down 7.7% on a year-over-year basis. As a group, analysts expect that Rackspace Technology, Inc. will post -0.27 EPS for the current fiscal year.

Insider Activity

In other news, CEO Amar Maletira sold 55,461 shares of the firm’s stock in a transaction dated Tuesday, December 3rd. The stock was sold at an average price of $2.54, for a total transaction of $140,870.94. Following the transaction, the chief executive officer now directly owns 4,928,523 shares of the company’s stock, valued at approximately $12,518,448.42. This trade represents a 1.11 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CTO Srini Koushik sold 19,470 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 $51,984.90. Following the completion of 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 position. The disclosure for this sale can be found here. In the last three months, insiders have sold 194,864 shares of company stock worth $508,997. 2.00% of the stock is currently owned by insiders.

Institutional Trading of Rackspace Technology

A number of institutional investors have recently made changes to their positions in the stock. Franklin Resources Inc. bought a new position in shares of Rackspace Technology during the third quarter valued at approximately $443,000. Barclays PLC increased its position in Rackspace Technology by 86.1% during the 3rd quarter. Barclays PLC now owns 109,997 shares of the company’s stock valued at $270,000 after purchasing an additional 50,896 shares during the period. Public Employees Retirement System of Ohio raised its holdings in Rackspace Technology by 32.0% in the 3rd quarter. Public Employees Retirement System of Ohio now owns 127,851 shares of the company’s stock worth $313,000 after purchasing an additional 30,983 shares in the last quarter. Jane Street Group LLC raised its holdings in Rackspace Technology by 27.4% in 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 in the last quarter. Finally, Point72 Asset Management L.P. bought a new stake in shares of Rackspace Technology during the 3rd quarter valued at about $135,000. 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.