Rackspace Technology (NASDAQ:RXT) Updates Q1 Earnings Guidance

Rackspace Technology (NASDAQ:RXTGet Free Report) updated its first quarter earnings guidance on Wednesday. The company provided earnings per share guidance of ($0.14)-($0.12) for the period, compared to the consensus earnings per share estimate of ($0.13). The company issued revenue guidance of $680-$690 million, compared to the consensus revenue estimate of $684.21 million.

Analysts Set New Price Targets

A number of equities research analysts have recently issued reports on the stock. Raymond James reduced their price target on shares of Rackspace Technology from $3.50 to $3.00 and set an outperform rating for the company in a research report on Wednesday, March 13th. Royal Bank of Canada reiterated a sector perform rating and set a $3.00 price target on shares of Rackspace Technology in a research report on Wednesday, March 13th. BMO Capital Markets lifted their price target on shares of Rackspace Technology from $1.50 to $2.50 and gave the company a market perform rating in a research report on Wednesday, March 13th. Finally, Evercore ISI reduced their price target on shares of Rackspace Technology from $3.00 to $2.00 and set an in-line rating for the company in a research report on Wednesday, March 13th. Two analysts have rated the stock with a sell rating, four have issued a hold rating and two have given a buy rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of Hold and a consensus target price of $2.31.

Get Our Latest Stock Report on RXT

Rackspace Technology Price Performance

Shares of Rackspace Technology stock opened at $1.64 on Wednesday. Rackspace Technology has a 1 year low of $1.05 and a 1 year high of $3.10. The company has a market capitalization of $360.41 million, a P/E ratio of -0.42 and a beta of 1.94. The business has a 50 day moving average price of $1.79 and a 200 day moving average price of $1.68.

Rackspace Technology (NASDAQ:RXTGet Free Report) last issued its quarterly earnings data on Tuesday, March 12th. The company reported ($0.03) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.04) by $0.01. Rackspace Technology had a negative return on equity of 10.18% and a negative net margin of 28.33%. The firm had revenue of $720.00 million during the quarter, compared to the consensus estimate of $714.74 million. During the same period in the previous year, the firm posted $0.06 EPS. The company’s quarterly revenue was down 8.5% compared to the same quarter last year. As a group, research analysts expect that Rackspace Technology will post -0.38 EPS for the current fiscal year.

Insiders Place Their Bets

In other Rackspace Technology news, CEO Amar Maletira sold 37,446 shares of Rackspace Technology stock in a transaction that occurred on Tuesday, February 20th. The shares were sold at an average price of $1.92, for a total value of $71,896.32. Following the completion of the sale, the chief executive officer now directly owns 4,638,423 shares of the company’s stock, valued at approximately $8,905,772.16. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. In other Rackspace Technology news, CEO Amar Maletira sold 37,446 shares of Rackspace Technology stock in a transaction that occurred on Tuesday, February 20th. The shares were sold at an average price of $1.92, for a total value of $71,896.32. Following the completion of the sale, the chief executive officer now directly owns 4,638,423 shares of the company’s stock, valued at approximately $8,905,772.16. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Brian Lillie sold 139,701 shares of Rackspace Technology stock in a transaction that occurred on Thursday, January 25th. The stock was sold at an average price of $1.62, for a total transaction of $226,315.62. Following the completion of the sale, the executive vice president now directly owns 1,608,258 shares of the company’s stock, valued at $2,605,377.96. The disclosure for this sale can be found here. In the last three months, insiders sold 189,463 shares of company stock valued at $318,164. Company insiders own 1.00% of the company’s stock.

Institutional Trading of Rackspace Technology

Several hedge funds and other institutional investors have recently bought and sold shares of RXT. Renaissance Technologies LLC purchased a new stake in shares of Rackspace Technology during the 1st quarter valued at $651,000. Charles Schwab Investment Management Inc. grew its stake in shares of Rackspace Technology by 3.0% during the 1st quarter. Charles Schwab Investment Management Inc. now owns 437,218 shares of the company’s stock valued at $4,880,000 after buying an additional 12,684 shares during the period. First Trust Advisors LP grew its stake in shares of Rackspace Technology by 3.0% during the 1st quarter. First Trust Advisors LP now owns 17,086,436 shares of the company’s stock valued at $190,685,000 after buying an additional 498,198 shares during the period. Federated Hermes Inc. purchased a new stake in shares of Rackspace Technology during the 1st quarter valued at $1,144,000. Finally, Mackenzie Financial Corp grew its stake in shares of Rackspace Technology by 0.9% during the 1st quarter. Mackenzie Financial Corp now owns 7,197,859 shares of the company’s stock valued at $80,328,000 after buying an additional 66,423 shares during the period. 82.48% of the stock is owned by hedge funds and other institutional investors.

About Rackspace Technology

(Get Free Report)

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.

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