Rackspace Technology (NASDAQ:RXT) Trading 7.2% Higher - Here's What Happened

Rackspace Technology, Inc. (NASDAQ:RXT - Get Free Report)'s stock price was up 7.2% on Friday . The company traded as high as $2.54 and last traded at $2.53. Approximately 1,023,437 shares traded hands during mid-day trading, an increase of 42% from the average daily volume of 721,513 shares. The stock had previously closed at $2.36.

Analysts Set New Price Targets

Separately, Barclays raised their target price 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 assigned a hold rating and one has issued a buy rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Hold" and an average target price of $2.47.

Rackspace Technology Stock Up 9.7 %

The firm has a market cap of $589.40 million, a price-to-earnings ratio of -0.74 and a beta of 2.02. The company has a 50 day moving average of $2.47 and a 200 day moving average of $2.47.

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 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 quarter last year, the firm posted ($0.04) earnings per share. Rackspace Technology's revenue was down 7.7% compared to the same quarter last year. As a group, equities research analysts expect that Rackspace Technology, Inc. will post -0.27 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, Director Anthony C. Roberts purchased 19,455 shares of the company's stock in a transaction dated Friday, December 6th. The shares were acquired at an average cost of $2.60 per share, with a total value of $50,583.00. Following the completion of the purchase, the director now owns 161,930 shares of the company's stock, valued at $421,018. The trade was a 13.66 % increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Amar Maletira sold 55,461 shares of Rackspace Technology stock in a transaction on Tuesday, December 3rd. The shares were sold at an average price of $2.54, for a total value of $140,870.94. Following the sale, the chief executive officer now directly owns 4,928,523 shares of the company's stock, valued at approximately $12,518,448.42. The trade was a 1.11 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 194,864 shares of company stock worth $508,997 in the last ninety days. 2.00% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of RXT. Bank of New York Mellon Corp increased its stake in Rackspace Technology by 17.1% in the second quarter. Bank of New York Mellon Corp now owns 222,778 shares of the company's stock valued at $664,000 after acquiring an additional 32,468 shares during the period. ClariVest Asset Management LLC grew its stake in shares of 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 purchasing an additional 10,281 shares during the period. Renaissance Technologies LLC raised its holdings 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 worth $3,991,000 after buying an additional 256,900 shares in the last quarter. Sargent Investment Group LLC lifted its position in shares of Rackspace Technology by 86.9% during the 2nd quarter. Sargent Investment Group LLC now owns 215,100 shares of the company's stock worth $641,000 after buying an additional 100,000 shares during the period. Finally, The Manufacturers Life Insurance Company lifted its position 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 buying an additional 9,275 shares during the period. 82.48% of the stock is currently owned by institutional investors and hedge funds.

Rackspace Technology Company Profile

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.