Rackspace Technology (NASDAQ:RXT) Trading Down 4.2% on Insider Selling

Rackspace Technology, Inc. (NASDAQ:RXT) shares traded down 4.2% during trading on Tuesday following insider selling activity. The stock traded as low as $2.51 and last traded at $2.54. 94,339 shares changed hands during mid-day trading, a decline of 91% from the average session volume of 1,088,169 shares. The stock had previously closed at $2.65.

Specifically, EVP Dharmendra Kumar Sinha sold 88,548 shares of the company’s stock in a transaction that occurred on Friday, November 29th. The shares were sold at an average price of $2.67, for a total value of $236,423.16. Following the completion of the transaction, the executive vice president now directly owns 2,334,166 shares in the company, valued at approximately $6,232,223.22. This represents a 3.65 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CTO Srini Koushik sold 19,470 shares of the company’s stock in a transaction that occurred 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 completion of the transaction, the chief technology officer now owns 1,026,279 shares of the company’s stock, valued at approximately $2,740,164.93. This trade represents a 1.86 % decrease in their ownership of the stock. The disclosure for this sale can be found here.

Analysts Set New Price Targets

Several equities analysts have issued reports on the stock. UBS Group upped their price target on shares of Rackspace Technology from $2.10 to $2.30 and gave the company a “neutral” rating in a research report on Friday, August 16th. Barclays increased their price objective 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 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 company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $2.47.

Rackspace Technology Stock Up 5.2 %

The firm has a market capitalization of $593.96 million, a P/E ratio of -0.75 and a beta of 1.99. The company’s 50 day moving average is $2.58 and its 200-day moving average is $2.45.

Rackspace Technology (NASDAQ:RXT) last issued its earnings results on Tuesday, November 12th. The company reported ($0.04) EPS for the quarter, beating analysts’ consensus estimates of ($0.07) by $0.03. The firm had revenue of $675.80 million during the quarter, compared to the consensus estimate of $675.14 million. The business’s quarterly revenue was down 7.7% on a year-over-year basis. During the same period in the previous year, the firm earned ($0.04) earnings per share. On average, analysts predict that Rackspace Technology, Inc. will post -0.27 EPS for the current fiscal year.

Institutional Trading of Rackspace Technology

Hedge funds have recently bought and sold shares of the business. The Manufacturers Life Insurance Company lifted its position in Rackspace Technology by 44.7% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 30,019 shares of the company’s stock valued at $89,000 after acquiring an additional 9,275 shares in the last quarter. ClariVest Asset Management LLC lifted its position in Rackspace Technology by 2.8% in the 2nd quarter. ClariVest Asset Management LLC now owns 379,721 shares of the company’s stock valued at $1,132,000 after acquiring an additional 10,281 shares in the last quarter. Creative Planning bought a new position in Rackspace Technology in the 3rd quarter valued at about $29,000. Allspring Global Investments Holdings LLC bought a new position in Rackspace Technology in the 2nd quarter valued at about $40,000. Finally, SG Americas Securities LLC lifted its position in Rackspace Technology by 64.7% in the 3rd quarter. SG Americas Securities LLC now owns 34,467 shares of the company’s stock valued at $84,000 after acquiring an additional 13,543 shares in the last quarter. 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.