Rackspace Technology (NASDAQ:RXT) Shares Gap Down After Analyst Downgrade

Rackspace Technology, Inc. (NASDAQ:RXTGet Rating)’s share price gapped down prior to trading on Tuesday after Citigroup lowered their price target on the stock from $7.00 to $5.00. The stock had previously closed at $4.75, but opened at $4.56. Rackspace Technology shares last traded at $4.57, with a volume of 5,257 shares.

A number of other equities analysts also recently weighed in on the stock. Royal Bank of Canada downgraded shares of Rackspace Technology from an “outperform” rating to a “sector perform” rating and dropped their price target for the stock from $9.00 to $7.00 in a research note on Thursday, August 11th. BMO Capital Markets decreased their price objective on shares of Rackspace Technology from $10.50 to $7.00 and set a “market perform” rating for the company in a report on Wednesday, August 10th. Raymond James cut shares of Rackspace Technology from an “outperform” rating to a “market perform” rating in a report on Wednesday, August 10th. William Blair cut shares of Rackspace Technology from an “outperform” rating to a “market perform” rating in a report on Wednesday, August 10th. Finally, JPMorgan Chase & Co. cut shares of Rackspace Technology from a “neutral” rating to an “underweight” rating and decreased their price target for the company from $7.00 to $5.00 in a report on Tuesday, August 16th. Two research analysts have rated the stock with a sell rating, eight have given a hold rating and one has given a buy rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $7.60.

Institutional Trading of Rackspace Technology

A number of hedge funds have recently added to or reduced their stakes in the stock. Russell Investments Group Ltd. boosted its holdings in Rackspace Technology by 2.2% in the first quarter. Russell Investments Group Ltd. now owns 97,062 shares of the company’s stock valued at $1,083,000 after acquiring an additional 2,125 shares during the last quarter. Rice Hall James & Associates LLC boosted its position in shares of Rackspace Technology by 8.9% during the first quarter. Rice Hall James & Associates LLC now owns 2,731,145 shares of the company’s stock worth $30,480,000 after buying an additional 222,187 shares during the period. IndexIQ Advisors LLC acquired a new position in shares of Rackspace Technology during the first quarter worth approximately $395,000. Leeward Investments LLC MA acquired a new position in shares of Rackspace Technology during the first quarter worth approximately $29,433,000. Finally, Swiss National Bank boosted its position in shares of Rackspace Technology by 8.4% during the first quarter. Swiss National Bank now owns 99,300 shares of the company’s stock worth $1,108,000 after buying an additional 7,700 shares during the period. 88.15% of the stock is owned by institutional investors and hedge funds.

Rackspace Technology Price Performance

The business has a 50-day simple moving average of $4.78 and a two-hundred day simple moving average of $6.19. The stock has a market capitalization of $977.44 million, a price-to-earnings ratio of -1.45, a P/E/G ratio of 0.88 and a beta of 1.20. The company has a quick ratio of 1.25, a current ratio of 1.25 and a debt-to-equity ratio of 4.48.

Rackspace Technology Company Profile

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Rackspace Technology, Inc operates as a multi cloud technology services company worldwide. It operates through Multicloud Services and Apps & Cross Platform segments. The company's Multicloud Services segment provides public and private cloud managed services, which allow customers to determine, manage, and optimize the right infrastructure, platforms, and services; and professional services related to designing and building multi cloud solutions and cloud-native applications.

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