Rackspace Technology (NASDAQ:RXT) Stock Price Up 7.3% Following Insider Buying Activity

Shares of Rackspace Technology, Inc. (NASDAQ:RXT) rose 7.3% during trading on Tuesday after an insider bought additional shares in the company. The stock traded as high as $2.65 and last traded at $2.65. Approximately 164,406 shares traded hands during trading, a decline of 85% from the average daily volume of 1,085,183 shares. The stock had previously closed at $2.47.

Specifically, Director Anthony C. Roberts bought 19,455 shares of the company’s stock in a transaction on 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 acquisition, 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 purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink.

Wall Street Analysts Forecast Growth

A number of analysts recently commented on the company. Barclays upped their price objective on Rackspace Technology from $1.00 to $2.00 and gave the company an “underweight” rating in a research report on Monday, November 18th. UBS Group upped their price objective on Rackspace Technology from $2.10 to $2.30 and gave the stock a “neutral” rating in a research note on Friday, August 16th. One investment analyst has rated the stock with a sell rating, four have given a hold rating and one has given a buy rating to the company. According to MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of $2.47.

Rackspace Technology Trading Down 1.2 %

The firm has a 50-day moving average of $2.59 and a 200-day moving average of $2.47. The stock has a market capitalization of $580.30 million, a price-to-earnings ratio of -0.74 and a beta of 1.99.

Rackspace Technology (NASDAQ:RXT) 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 company had revenue of $675.80 million during the quarter, compared to analysts’ expectations of $675.14 million. During the same period in the prior year, the business posted ($0.04) earnings per share. The company’s quarterly revenue was down 7.7% compared to the same quarter last year. On average, equities research analysts anticipate that Rackspace Technology, Inc. will post -0.27 EPS for the current year.

Institutional Trading of Rackspace Technology

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Jacobs Levy Equity Management Inc. grew its stake 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 worth $1,996,000 after acquiring an additional 474,299 shares in the last quarter. Renaissance Technologies LLC increased its stake in shares of Rackspace Technology by 23.7% during the second quarter. Renaissance Technologies LLC now owns 1,339,200 shares of the company’s stock worth $3,991,000 after acquiring an additional 256,900 shares during the period. GSA Capital Partners LLP acquired a new position in Rackspace Technology during the third quarter worth about $412,000. Franklin Resources Inc. acquired a new position in Rackspace Technology during the third quarter worth about $443,000. Finally, Jane Street Group LLC lifted its holdings 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 valued at $1,895,000 after purchasing an additional 166,528 shares in 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.