Rackspace Technology (NASDAQ:RXT) Stock Price Up 7.4% – Here’s Why

Rackspace Technology, Inc. (NASDAQ:RXT) shares shot up 7.4% during trading on Monday . The stock traded as high as $2.77 and last traded at $2.77. 55,788 shares traded hands during trading, a decline of 95% from the average session volume of 1,096,131 shares. The stock had previously closed at $2.58.

Analysts Set New Price Targets

RXT has been the subject of a number of recent analyst reports. UBS Group increased their target price on shares of Rackspace Technology from $2.10 to $2.30 and gave the company a “neutral” rating in a research report on Friday, August 16th. Barclays upped their price objective on shares of Rackspace Technology from $1.00 to $2.00 and gave the company an “underweight” rating in a research note on Monday, November 18th. One analyst has rated the stock with a sell rating, four have given a hold rating and one has given a buy rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Hold” and a consensus target price of $2.47.

Rackspace Technology Stock Performance

The stock’s 50 day simple moving average is $2.56 and its 200 day simple moving average is $2.43.

Rackspace Technology (NASDAQ:RXT) last released its quarterly earnings results on Tuesday, November 12th. The company reported ($0.04) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.07) by $0.03. The company had revenue of $675.80 million for the quarter, compared to analyst estimates of $675.14 million. Rackspace Technology’s revenue for the quarter was down 7.7% on a year-over-year basis. During the same quarter last year, the firm posted ($0.04) EPS. On average, equities research analysts forecast that Rackspace Technology, Inc. will post -0.27 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CEO Amar Maletira sold 82,552 shares of the firm’s stock in a transaction on Wednesday, October 2nd. The stock was sold at an average price of $2.37, for a total transaction of $195,648.24. Following the completion of the sale, the chief executive officer now directly owns 4,983,984 shares of the company’s stock, valued at $11,812,042.08. This trade represents a 1.63 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. 2.00% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Rackspace Technology

Hedge funds have recently modified their holdings of the stock. Barclays PLC grew its stake in shares of Rackspace Technology by 86.1% during the 3rd quarter. Barclays PLC now owns 109,997 shares of the company’s stock worth $270,000 after acquiring an additional 50,896 shares during the period. Public Employees Retirement System of Ohio boosted its position in Rackspace Technology by 32.0% during the third quarter. Public Employees Retirement System of Ohio now owns 127,851 shares of the company’s stock worth $313,000 after purchasing an additional 30,983 shares during the period. Jane Street Group LLC increased its stake in shares of Rackspace Technology by 27.4% in the third quarter. Jane Street Group LLC now owns 773,454 shares of the company’s stock worth $1,895,000 after purchasing an additional 166,528 shares in the last quarter. Point72 Asset Management L.P. purchased a new position in shares of Rackspace Technology in the third quarter worth about $135,000. Finally, Jacobs Levy Equity Management Inc. raised its position in shares of Rackspace Technology by 139.4% in the third quarter. Jacobs Levy Equity Management Inc. now owns 814,624 shares of the company’s stock valued at $1,996,000 after purchasing an additional 474,299 shares during the period. Institutional investors 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.