Rackspace Technology (NASDAQ:RXT) Hits New 1-Year Low on Analyst Downgrade

Posted by Defense World Staff on Feb 25th, 2023

Rackspace Technology, Inc. (NASDAQ:RXT – Get Rating) reached a new 52-week low during trading on Friday after Deutsche Bank Aktiengesellschaft lowered their price target on the stock from $5.00 to $3.00. The stock traded as low as $2.51 and last traded at $2.52, with a volume of 164087 shares traded. The stock had previously closed at $2.67.

Several other research analysts also recently commented on RXT. Citigroup decreased their price objective on Rackspace Technology from $7.00 to $5.00 in a research note on Monday, November 21st. BMO Capital Markets cut their target price on Rackspace Technology from $6.00 to $3.50 and set a “market perform” rating for the company in a research report on Thursday. Barclays cut their target price on Rackspace Technology from $4.00 to $2.00 and set an “underweight” rating for the company in a research report on Monday, December 19th. Royal Bank of Canada cut their target price on Rackspace Technology from $6.00 to $4.00 and set a “sector perform” rating for the company in a research report on Thursday. Finally, Credit Suisse Group cut their target price on Rackspace Technology from $8.00 to $6.10 and set an “outperform” rating for the company in a research report on Thursday. Two equities research analysts have rated the stock with a sell rating, eight have given a hold rating and one has issued a buy rating to the stock. Based on data from MarketBeat, the company has an average rating of “Hold” and a consensus target price of $5.07.

Insider Buying and Selling at Rackspace Technology

In other news, Director Shashank Samant purchased 100,000 shares of the business’s stock in a transaction on Tuesday, November 29th. The stock was acquired at an average price of $4.55 per share, for a total transaction of $455,000.00. Following the acquisition, the director now directly owns 138,574 shares of the company’s stock, valued at approximately $630,511.70. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 2.10% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Rackspace Technology

Several institutional investors have recently added to or reduced their stakes in the company. Ensign Peak Advisors Inc bought a new stake in shares of Rackspace Technology in the 3rd quarter valued at approximately $31,000. MQS Management LLC bought a new stake in shares of Rackspace Technology in the 4th quarter valued at approximately $32,000. Verition Fund Management LLC bought a new stake in shares of Rackspace Technology in the 4th quarter valued at approximately $32,000. Point72 Hong Kong Ltd lifted its stake in shares of Rackspace Technology by 144.4% in the 2nd quarter. Point72 Hong Kong Ltd now owns 4,831 shares of the company’s stock valued at $35,000 after purchasing an additional 2,854 shares during the last quarter. Finally, PNC Financial Services Group Inc. lifted its stake in shares of Rackspace Technology by 693.1% in the 1st quarter. PNC Financial Services Group Inc. now owns 3,347 shares of the company’s stock valued at $37,000 after purchasing an additional 2,925 shares during the last quarter.

Rackspace Technology Price Performance

The firm has a market capitalization of $513.00 million, a P/E ratio of -0.64, a price-to-earnings-growth ratio of 2.69 and a beta of 1.37. The firm has a 50 day moving average price of $2.88 and a 200-day moving average price of $4.11. The company has a current ratio of 1.25, a quick ratio of 1.25 and a debt-to-equity ratio of 4.48.

Rackspace Technology (NASDAQ:RXT – Get Rating) last posted its quarterly earnings data on Wednesday, February 22nd. The company reported $0.06 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.06. The business had revenue of $787.00 million during the quarter, compared to analyst estimates of $776.33 million. Rackspace Technology had a positive return on equity of 9.97% and a negative net margin of 25.78%. The company’s revenue for the quarter was up 1.2% on a year-over-year basis. During the same period last year, the company earned $0.25 EPS. On average, analysts expect that Rackspace Technology, Inc. will post 0.1 earnings per share for the current year.

Rackspace Technology Company Profile

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Rackspace Technology, Inc operates as a multi cloud technology services company worldwide. It operates through Multicloud Services and Apps & Cross Platform segments. The company's Multicloud Services segment provides public and private cloud managed services, which allow customers to determine, manage, and optimize the right infrastructure, platforms, and services; and professional services related to designing and building multi cloud solutions and cloud-native applications.