A Look At Insider Reactions To Rackspace Technology Inc. (RXT)

As of Thursday close, Rackspace Technology Inc.’s (NASDAQ:RXT) stock was up $0.8, moving up 9.79 percent to $8.97. The average number of shares traded per day over the past five days has been 1,385,180 shares. 1 time new highs have been achieved over the past 5 days, with a -$1.12 fall in that time frame. In the last twenty days, the average volume was 814,165, while in the previous 50 days, it was 929,970.


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Since last month, RXT stock retreated -8.84%. Shares of the company fell to $8.00 on 05/12/22, the lowest level in the past month. A 52-week high of $21.50 was reached on 01/03/22 after having rallying from a 52-week low of $7.28. Since the beginning of this year, RXT’s stock price has dropped by -33.41% or -$4.50, and marked a new high 1 time. However, the stock has declined by -58.28% since its 52-week high.

Rackspace Technology Inc. (RXT) last reported insider trading activity 301 days ago on Jul 16. CAMPOS TIMOTHY, the Director of the company, disposed of 11,992 shares for $19.17 on Jul 16. It resulted in a $229,883 divestment by the insider. Windham Holly B. sold 10,000 shares at an average price of $20.19 on Jun 16. The insider now owns 165,666 shares following the transaction. On Jun 15, EVP, Chief Legal & People Off Windham Holly B. sold 2,525 shares at $21.00 apiece. The transaction was valued at $53,025.

Financial Health

In the three months ended September 29, Rackspace Technology Inc.’s quick ratio stood at 1.20, while its current ratio was 1.20, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending September 29 was 2.80, and the total debt-to-equity ratio was 2.90. On the profitability front, the trailing twelve-month gross margin is 31.10% percent. In the year ended September 29, operating margins totaled -1.30%. Based on annual data, RXT earned $936.8 million in gross profit and brought in $3.01 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was -0.20%. Return on equity (ROE) for the past 12 months was -16.00%.

In Rackspace Technology Inc.’s quarter-end financial report for September 29, it reported total debt of $3.31 billion. According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. RXT’s revenue rose 6.4% to $777.3 million during the quarter, while net income inched up to $775.5 million. While analysts expected Rackspace Technology Inc. to report $0.24 quarterly earnings, the actual figure was $0.25 per share, beating the consensus estimate by 4.20%. During the quarter, the company generated $138.8 million in EBITDA. The liabilities of Rackspace Technology Inc. were 4.97 billion at the end of its most recent quarter ended September 29, and its total debt was $4.11 billion. The value of shareholders’ equity is $210.86 million.

Technical Picture

This quick technical analysis looks at Rackspace Technology Inc.’s (RXT) price momentum. With a historical volatility rate of 77.25%, the RSI 9-day stood at 38.94% on 12 May.

With respect to its five-day moving average, the current Rackspace Technology Inc. price is down by -11.10% percent or -$1.12. At present, RXT shares trade -11.71% below its 20-day simple moving average and -33.65% percent below its 100-day simple moving average. However, the stock is currently trading approximately -14.16% below its SMA50 and -50.66% below its SMA200.

Stochastic coefficient K was 15.03% and Stochastic coefficient D was 7.72%, while ATR was 0.68. Given the Stochastic reading of 39.43% for the 14-day period, the RSI (14) reading has been calculated as 39.56%. As of today, the MACD Oscillator reading stands at -0.94, while the 14-day reading stands at -1.13.

Analyst Ratings

Raymond James upgraded its rating on Rackspace Technology Inc. (NASDAQ: RXT) to an Outperform in a note to investors on May 11, 2022. The analysts firm previously had a Mkt perform rating on the stock.Rackspace Technology Inc. (RXT) has been rated Overweight by analysts. According to 0 brokerage firms, RXT is a sell, and 5 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 1 analyst rate Rackspace Technology Inc. stock as buy, with 5 recommending it as overweight.

With a median target price of $11.00, the current consensus forecast for the stock is $9.00 – $16.00. Based on these forecasts, analysts predict Rackspace Technology Inc. (RXT) will achieve an average price target of $11.94.

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