Rackspace Technology (NASDAQ:RXT) Trading Down 9.4% – Should You Sell?

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

Analysts Set New Price Targets

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 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 assigned a buy rating to the company. According to MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $2.47.

Rackspace Technology Stock Performance

The company has a market capitalization of $596.23 million, a PE ratio of -0.68 and a beta of 2.04. The business has a fifty day moving average price of $2.52 and a 200 day moving average price of $2.50.

Rackspace Technology (NASDAQ:RXT) last posted its quarterly earnings results on Thursday, February 20th. The company reported ($0.02) EPS for the quarter, beating the consensus estimate of ($0.04) by $0.02. The business had revenue of $685.60 million during the quarter, compared to analysts’ expectations of $674.85 million.

Insider Activity

In other news, Director Anthony C. Roberts bought 19,455 shares of the firm’s stock in a transaction dated Friday, December 6th. The stock was acquired at an average cost of $2.60 per share, for a total transaction of $50,583.00. Following the completion of the purchase, the director now owns 161,930 shares of the company’s stock, valued at $421,018. This trade represents a 13.66 % increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Mark A. Marino sold 14,458 shares of Rackspace Technology stock in a transaction on Monday, January 27th. The stock was sold at an average price of $2.34, for a total transaction of $33,831.72. Following the sale, the chief financial officer now directly owns 1,915,356 shares in the company, valued at $4,481,933.04. This trade represents a 0.75 % decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 209,322 shares of company stock valued at $542,829. Company insiders own 2.00% of the company’s stock.

Hedge Funds Weigh In On Rackspace Technology

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Jacobs Levy Equity Management Inc. grew its stake in Rackspace Technology by 139.4% during the 3rd quarter. Jacobs Levy Equity Management Inc. now owns 814,624 shares of the company’s stock valued at $1,996,000 after purchasing an additional 474,299 shares in the last quarter. US Bancorp DE raised its holdings in Rackspace Technology by 10,766.2% in 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. Jane Street Group LLC lifted its position in shares of Rackspace Technology by 27.4% during the third 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. FMR LLC lifted its stake in Rackspace Technology by 437.5% during the third quarter. FMR LLC now owns 31,154 shares of the company’s stock worth $76,000 after purchasing an additional 25,358 shares during the last quarter. Finally, Barclays PLC raised its stake in Rackspace Technology by 86.1% during the third quarter. Barclays PLC now owns 109,997 shares of the company’s stock worth $270,000 after acquiring an additional 50,896 shares during the period. 82.48% of the stock is owned by hedge funds and other institutional investors.

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.