Rackspace Technology (RXT) Stock Price, News & Analysis

Company Overview

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. It also helps customers establish governance, operational, and architectural frameworks to mitigate risks and reduce inefficiencies to manage costs, achieve industry-specific compliance objectives, and enhance security. In addition, the company offers managed applications, including running large-scale SaaS applications for customers on its and public cloud infrastructure; managed security services in the areas of security threat assessment and prevention, threat detection and response, rapid remediation, governance, and risk and compliance assistance across multiple cloud platforms, as well as privacy and data protection services, including detailed access restrictions and reporting; data services; and professional services related to designing and implementing application, security, and data services. Rackspace Technology, Inc. was founded in 1998 and is headquartered in San Antonio, Texas.

Key Stats

• Today's Range: $2.36 to $2.56
• 50-Day Range: $1.89 to $2.57
• 52-Week Range: $1.15 to $3.18
• Volume: 629,161 shs
• Average Volume: 1.15 million shs
• Market Capitalization: $568.58 million
• P/E Ratio: N/A
• Dividend Yield: N/A
• Price Target: $2.15
• Consensus Rating: Reduce

Rackspace Technology Stock Analysis - MarketRank™

Rackspace Technology scored higher than 17% of companies evaluated by MarketBeat, and ranked 308th out of 351 stocks in the business services sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 0.9 / 5
• Analyst Rating: Reduce

Consensus Rating

Rackspace Technology has received a consensus rating of Reduce. The company's average rating score is 1.86, and is based on 1 buy rating, 4 hold ratings, and 2 sell ratings.

Amount of Analyst Coverage

Rackspace Technology has only been the subject of 1 research reports in the past 90 days.

Earnings and Valuation

• Score: 0.6 / 5
• Proj. Earnings Growth: Growing

Earnings Growth

Earnings for Rackspace Technology are expected to grow in the coming year, from ($0.32) to ($0.01) per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of Rackspace Technology is -0.64, which means that its earnings are negative and its P/E ratio cannot be compared to companies with positive earnings.

Price to Earnings Ratio vs. Sector

The P/E ratio of Rackspace Technology is -0.64, which means that its earnings are negative and its P/E ratio cannot be compared to companies with positive earnings.

Short Interest

• Score: 3.0 / 5
• Short Interest Level: Healthy

Percentage of Shares Shorted

10.44% of the float of Rackspace Technology has been sold short.

Short Interest Ratio / Days to Cover

Rackspace Technology has a short interest ratio ("days to cover") of 5.5.

Change versus previous month

Short interest in Rackspace Technology has recently decreased by 7.11%, indicating that investor sentiment is improving significantly.

Dividend

• Score: 0.0 / 5
• Dividend Strength: N/A

Dividend Yield

Rackspace Technology does not currently pay a dividend.

Dividend Growth

Rackspace Technology does not have a long track record of dividend growth.

Sustainability and ESG

• Score: N/A
• Environmental Score: N/A

Percentage of Shares Shorted

10.44% of the float of Rackspace Technology has been sold short.

Short Interest Ratio / Days to Cover

Rackspace Technology has a short interest ratio ("days to cover") of 5.5.

Change versus previous month

Short interest in Rackspace Technology has recently decreased by 7.11%, indicating that investor sentiment is improving significantly.

News and Social Media

• Score: 1.9 / 5
• News Sentiment: 0.36

News Sentiment

Rackspace Technology has a news sentiment score of 0.36. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a lower news sentiment than the 0.55 average news sentiment score of Business Services companies.

News Coverage This Week

MarketBeat has tracked 9 news articles for Rackspace Technology this week, compared to 3 articles on an average week.

MarketBeat Follows

Only 2 people have added Rackspace Technology to their MarketBeat watchlist in the last 30 days. This is a decrease of 0% compared to the previous 30 days.

Company Ownership

• Score: 2.5 / 5
• Insider Trading: Selling Shares

Insider Buying vs. Insider Selling

In the past three months, Rackspace Technology insiders have sold more of their company's stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $894,330.00 in company stock.

Percentage Held by Insiders

Only 1.00% of the stock of Rackspace Technology is held by insiders.

Percentage Held by Institutions

82.48% of the stock of Rackspace Technology is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

RXT Stock Analysis - Frequently Asked Questions

How have RXT shares performed this year?

Rackspace Technology's stock was trading at $2.00 at the beginning of 2024. Since then, RXT stock has increased by 27.0% and is now trading at $2.54.
View the best growth stocks for 2024 here.

How were Rackspace Technology's earnings last quarter?

Rackspace Technology, Inc. (NASDAQ:RXT) issued its quarterly earnings results on Thursday, August, 8th. The company reported ($0.08) EPS for the quarter, topping analysts' consensus estimates of ($0.11) by $0.03. The company had revenue of $684.90 million for the quarter, compared to the consensus estimate of $669.10 million.

When did Rackspace Technology IPO?

Rackspace Technology (RXT) raised $754 million in an IPO on Wednesday, August 5th 2020. The company issued 33,500,000 shares at a price of $21.00-$24.00 per share. Goldman Sachs, Citigroup, JPMorgan, RBC Capital Markets and Evercore ISI acted as the underwriters for the IPO and Barclays, BMO Capital Markets, Credit Suisse, Deutsche Bank Securities, HSBC, LionTree, Siebert Williams Shank, Drexel Hamilton and Apollo Global Securities were co-managers.

Who are Rackspace Technology's major shareholders?

Rackspace Technology's top institutional investors include SG Americas Securities LLC (0.02%). Insiders that own company stock include Amar Maletira, Srini Koushik, Kellie Teal-Guess, Casey L Shilling, Mark A Marino, Anthony C Roberts and Shashank Samant.
View institutional ownership trends.

How do I buy shares of Rackspace Technology?

Shares of RXT stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.
Compare Top Brokerages Here.

What other stocks do shareholders of Rackspace Technology own?

Based on aggregate information from My MarketBeat watchlists, some other companies that Rackspace Technology investors own include Advanced Micro Devices (AMD), NVIDIA (NVDA), DocuSign (DOCU), Marvell Technology (MRVL), QUALCOMM (QCOM), Block (SQ) and CrowdStrike (CRWD).

Company Calendar

• Last Earnings: 8/08/2024
• Today: 10/05/2024
• Next Earnings (Estimated): 11/05/2024
• Fiscal Year End: 12/31/2024

Industry, Sector and Symbol

• Stock Exchange: NASDAQ
• Sector: Business Services
• Industry: Computer programming, data processing, & other computer related
• Sub-Industry: Computer Software
• Current Symbol: NASDAQ:RXT
• CUSIP: N/A
• CIK: 1810019
• Web: www.rackspace.com
• Phone: 210-312-4000
• Fax: N/A
• Employees: 5,800
• Year Founded: N/A

Price Target and Rating

• Average Stock Price Target: $2.15
• High Stock Price Target: $3.00
• Low Stock Price Target: $1.00
• Potential Upside/Downside: -15.4%
• Consensus Rating: Reduce
• Rating Score (0-4): 1.86
• Research Coverage: 7 Analysts

Profitability

• EPS (Most Recent Fiscal Year): ($3.96)
• Trailing P/E Ratio: N/A
• Forward P/E Ratio: N/A
• P/E Growth: N/A
• Net Income: $-837,800,000.00
• Net Margins: -28.79%
• Pretax Margin: -30.26%
• Return on Equity: N/A
• Return on Assets: -1.55%

Debt

• Debt-to-Equity Ratio: N/A
• Current Ratio: 0.90
• Quick Ratio: 0.90

Sales & Book Value

• Annual Sales: $2.83 billion
• Price / Sales: 0.20
• Cash Flow: $5.40 per share
• Price / Cash Flow: 0.47
• Book Value: ($0.71) per share
• Price / Book: -3.58

Miscellaneous

• Outstanding Shares: 223,851,000
• Free Float: 221,612,000
• Market Cap: $568.58 million
• Optionable: Optionable
• Beta: 1.98