Rackspace Technology (NASDAQ:RXT) Hits New 12-Month High on Better-Than-Expected Earnings

Rackspace Technology, Inc. (NASDAQ:RXT - Get Free Report)'s share price hit a new 52-week high on Wednesday following a stronger than expected earnings report. The stock traded as high as $3.39 and last traded at $3.26, with a volume of 532325 shares. The stock had previously closed at $2.86.

The company reported ($0.04) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.08) by $0.04. The firm had revenue of $675.80 million for the quarter, compared to analyst estimates of $675.14 million. During the same period in the previous year, the firm earned ($0.04) earnings per share. Rackspace Technology's revenue was down 7.7% on a year-over-year basis.

Analyst Upgrades and Downgrades

Separately, UBS Group raised their target price on shares of Rackspace Technology from $2.10 to $2.30 and gave the stock a "neutral" rating in a report on Friday, August 16th. One analyst has rated the stock with a sell rating, four have assigned a hold rating and one has assigned a buy rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and an average target price of $2.34.

Insider Transactions at Rackspace Technology

In other news, CEO Amar Maletira sold 84,823 shares of the stock in a transaction on Monday, September 30th. The stock was sold at an average price of $2.42, for a total value of $205,271.66. Following the completion of the sale, the chief executive officer now owns 5,158,399 shares in the company, valued at $12,483,325.58. This represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Insiders have sold a total of 227,321 shares of company stock valued at $542,103 over the last ninety days. Corporate insiders own 2.00% of the company's stock.

Institutional Trading of Rackspace Technology

Several institutional investors have recently made changes to their positions in RXT. The Manufacturers Life Insurance Company increased its stake in shares of Rackspace Technology by 44.7% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 30,019 shares of the company's stock worth $89,000 after purchasing an additional 9,275 shares during the last quarter. ClariVest Asset Management LLC boosted its holdings in Rackspace Technology by 2.8% in the second quarter. ClariVest Asset Management LLC now owns 379,721 shares of the company's stock worth $1,132,000 after purchasing an additional 10,281 shares in the last quarter. Creative Planning acquired a new position in Rackspace Technology during the third quarter worth $29,000. Allspring Global Investments Holdings LLC acquired a new position in Rackspace Technology during the second quarter worth $40,000. Finally, SG Americas Securities LLC raised its holdings in Rackspace Technology by 64.7% during the third quarter. SG Americas Securities LLC now owns 34,467 shares of the company's stock valued at $84,000 after buying an additional 13,543 shares in the last quarter. 82.48% of the stock is currently owned by institutional investors and hedge funds.

Rackspace Technology Price Performance

The business has a 50-day simple moving average of $2.52 and a two-hundred day simple moving average of $2.38.

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.