Rackspace Technology (NASDAQ:RXT) Issues Q1 2024 Earnings Guidance

Rackspace Technology (NASDAQ:RXT) updated its first quarter 2024 earnings guidance on Tuesday. The company provided earnings per share (EPS) guidance of -0.140–0.120 for the period, compared to the consensus estimate of -0.040. The company issued revenue guidance of $680.0 million-$690.0 million, compared to the consensus revenue estimate of $709.4 million. Rackspace Technology also updated its Q1 guidance to ($0.14)-($0.12) EPS.

Wall Street Analyst Weigh In

Separately, Citigroup decreased their price target on shares of Rackspace Technology from $1.50 to $1.25 and set a sell rating on the stock in a research note on Monday, November 20th. Two investment analysts have rated the stock with a sell rating, two have assigned a hold rating and two have given a buy rating to the company. According to data from MarketBeat.com, the stock has an average rating of Hold and an average price target of $2.33.

Rackspace Technology Stock Performance

Shares of Rackspace Technology stock traded up $0.11 during midday trading on Tuesday, hitting $2.21. The company had a trading volume of 3,251,194 shares, compared to its average volume of 1,272,957. The stock has a market cap of $478.26 million, a price-to-earnings ratio of -0.42 and a beta of 1.99. The company has a quick ratio of 1.02, a current ratio of 1.02 and a debt-to-equity ratio of 111.44. The company has a fifty day simple moving average of $1.83 and a 200 day simple moving average of $1.74. Rackspace Technology has a 12-month low of $1.05 and a 12-month high of $3.10.

Insider Transactions at Rackspace Technology

In other news, CEO Amar Maletira sold 37,446 shares of the company’s stock in a transaction on Tuesday, February 20th. The shares were sold at an average price of $1.92, for a total transaction of $71,896.32. Following the completion of the sale, the chief executive officer now owns 4,638,423 shares of the company’s stock, valued at $8,905,772.16. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. In other news, CEO Amar Maletira sold 37,446 shares of the company’s stock in a transaction on Tuesday, February 20th. The shares were sold at an average price of $1.92, for a total transaction of $71,896.32. Following the completion of the sale, the chief executive officer now owns 4,638,423 shares of the company’s stock, valued at $8,905,772.16. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, EVP Brian Lillie sold 139,701 shares of the business’s stock in a transaction dated Thursday, January 25th. The shares were sold at an average price of $1.62, for a total transaction of $226,315.62. Following the transaction, the executive vice president now directly owns 1,608,258 shares in the company, valued at approximately $2,605,377.96. The disclosure for this sale can be found here. Insiders have sold 199,245 shares of company stock valued at $335,185 in the last 90 days. 1.00% of the stock is currently owned by company insiders.

Institutional Trading of Rackspace Technology

A number of institutional investors and hedge funds have recently bought and sold shares of RXT. Tower Research Capital LLC TRC lifted its holdings in Rackspace Technology by 1,428.1% in the first quarter. Tower Research Capital LLC TRC now owns 39,197 shares of the company’s stock valued at $74,000 after acquiring an additional 36,632 shares during the period. Deutsche Bank AG increased its position in shares of Rackspace Technology by 35.9% in the first quarter. Deutsche Bank AG now owns 34,883 shares of the company’s stock valued at $66,000 after buying an additional 9,213 shares in the last quarter. Walleye Capital LLC purchased a new position in shares of Rackspace Technology in the third quarter valued at $52,000. GSA Capital Partners LLP purchased a new position in shares of Rackspace Technology in the third quarter valued at $49,000. Finally, American Century Companies Inc. purchased a new stake in Rackspace Technology during the 3rd quarter worth about $41,000. 82.48% of the stock is currently owned by hedge funds and other institutional investors.

Rackspace Technology Company Profile

Rackspace Technology, Inc operates as a multi cloud technology services company the Americas, Europe, the Middle East, Africa, and The Asia-Pacific region. It operates through two segments, Multicloud Services and Apps & Cross Platform. The 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.