Rackspace Technology (NASDAQ:RXT) Shares Down 11.2% - What's Next?

Rackspace Technology, Inc. (NASDAQ:RXT - Get Free Report)'s stock price dropped 11.2% during trading on Monday . The stock traded as low as $2.28 and last traded at $2.30. Approximately 527,849 shares traded hands during mid-day trading, a decline of 36% from the average daily volume of 823,054 shares. The stock had previously closed at $2.59.

Analyst Ratings Changes

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 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. According to data from MarketBeat.com, the company has an average rating of "Hold" and a consensus target price of $2.47.

Rackspace Technology Trading Down 10.4 %

The stock's fifty day moving average price is $2.47 and its 200 day moving average price is $2.46. The stock has a market cap of $527.96 million, a P/E ratio of -0.66 and a beta of 2.02.

Rackspace Technology (NASDAQ:RXT - Get Free Report) last released 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. During the same period in the prior year, the company earned ($0.04) EPS. The firm's revenue was down 7.7% compared to the same quarter last year. On average, analysts anticipate that Rackspace Technology, Inc. will post -0.27 earnings per share for the current year.

Insiders Place Their Bets

In related news, CTO Srini Koushik sold 19,470 shares of Rackspace Technology stock in a transaction on Friday, November 29th. The shares were sold at an average price of $2.67, for a total value of $51,984.90. Following the transaction, the chief technology officer now directly owns 1,026,279 shares of the company's stock, valued at $2,740,164.93. The trade was a 1.86 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, EVP Dharmendra Kumar Sinha sold 88,548 shares of the stock in a transaction on Friday, November 29th. The shares were sold at an average price of $2.67, for a total transaction of $236,423.16. Following the sale, the executive vice president now directly owns 2,334,166 shares of the company's stock, valued at $6,232,223.22. The trade was a 3.65 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 194,864 shares of company stock valued at $508,997 over the last quarter. 2.00% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in RXT. Renaissance Technologies LLC lifted its stake in shares of Rackspace Technology by 23.7% in the 2nd quarter. Renaissance Technologies LLC now owns 1,339,200 shares of the company's stock valued at $3,991,000 after purchasing an additional 256,900 shares during the period. Jacobs Levy Equity Management Inc. boosted its holdings in shares of 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 buying an additional 474,299 shares in the last quarter. Jane Street Group LLC boosted its holdings in shares of Rackspace Technology by 27.4% during the 3rd quarter. Jane Street Group LLC now owns 773,454 shares of the company's stock valued at $1,895,000 after buying an additional 166,528 shares in the last quarter. Charles Schwab Investment Management Inc. grew its position in shares of Rackspace Technology by 7.6% in the 3rd quarter. Charles Schwab Investment Management Inc. now owns 590,724 shares of the company's stock worth $1,447,000 after buying an additional 41,697 shares during the period. Finally, Sargent Investment Group LLC increased its stake in shares of Rackspace Technology by 25.6% in the 3rd quarter. Sargent Investment Group LLC now owns 270,100 shares of the company's stock worth $662,000 after acquiring an additional 55,000 shares in the last quarter. 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.