Rackspace Technology (NASDAQ:RXT) Shares Gap Down - Time to Sell?

Rackspace Technology, Inc. (NASDAQ:RXT - Get Free Report) gapped down prior to trading on Tuesday . The stock had previously closed at $2.95, but opened at $2.84. Rackspace Technology shares last traded at $2.86, with a volume of 71,924 shares trading hands.

Wall Street Analyst Weigh In

Separately, Barclays raised their price target on Rackspace Technology from $1.00 to $2.00 and gave the stock an "underweight" rating in a report on Monday, November 18th. 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's stock. Based on data from MarketBeat.com, Rackspace Technology presently has a consensus rating of "Hold" and an average price target of $2.47.

Rackspace Technology Stock Down 2.0 %

The business's fifty day moving average price is $2.45 and its 200 day moving average price is $2.45. The firm has a market capitalization of $657.67 million, a PE ratio of -0.83 and a beta of 2.04.

Rackspace Technology (NASDAQ:RXT - Get Free Report) last issued its quarterly earnings results on Tuesday, November 12th. The company reported ($0.04) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.07) by $0.03. The business had revenue of $675.80 million during the quarter, compared to analyst estimates of $675.14 million. The firm's quarterly revenue was down 7.7% on a year-over-year basis. During the same period in the previous year, the business posted ($0.04) earnings per share. As a group, sell-side analysts forecast that Rackspace Technology, Inc. will post -0.27 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, CEO Amar Maletira sold 55,461 shares of the stock in a transaction on Tuesday, December 3rd. The stock was sold at an average price of $2.54, for a total value of $140,870.94. Following the completion of the sale, the chief executive officer now directly owns 4,928,523 shares in the company, valued at approximately $12,518,448.42. This represents a 1.11 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Mark A. Marino sold 14,458 shares of the stock in a transaction dated Monday, January 27th. The shares were sold at an average price of $2.34, for a total value of $33,831.72. Following the completion of the sale, the chief financial officer now owns 1,915,356 shares of the company's stock, valued at approximately $4,481,933.04. This trade represents a 0.75 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 209,322 shares of company stock worth $542,829 over the last three months. 2.00% of the stock is owned by insiders.

Institutional Investors Weigh In On Rackspace Technology

A number of hedge funds have recently bought and sold shares of RXT. Charles Schwab Investment Management Inc. grew its stake in Rackspace Technology by 0.9% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 595,860 shares of the company's stock worth $1,317,000 after purchasing an additional 5,136 shares in the last quarter. The Manufacturers Life Insurance Company lifted its holdings in 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 buying an additional 9,275 shares during the last quarter. Creative Planning acquired a new position in shares of Rackspace Technology in the 3rd quarter worth approximately $29,000. SG Americas Securities LLC increased its holdings in shares of 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 during the last quarter. Finally, US Bancorp DE increased its holdings in shares of Rackspace Technology by 10,766.2% in the 3rd quarter. US Bancorp DE now owns 16,408 shares of the company's stock valued at $40,000 after acquiring an additional 16,257 shares during 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.