Are You Considering Rackspace Technology Inc. (RXT) As Part Of Your Portfolio?

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The stock of Rackspace Technology Inc. (NASDAQ:RXT) decreased by -$0.07 on Tuesday to $2.88, down -2.20 percent. The last five days have seen an average of 1,320,515 shares of common stock traded. The average number of shares traded over the last 20 days was 3,952,144, while the average volume over the last 50 days totaled 2,312,312.

RXT stock dropped -39.55% since last month. On 12/27/22, the company’s shares reached a one-month low of $2.51. The stock touched a high of $13.98 on 01/03/23, after rallying from a low of $2.51 in 52 weeks. The price of RXT stock has declined by -78.10%. Still, the stock price is down -79.36% from the 52-week high.


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Insider Transactions

RXT stock investors should be aware that Rackspace Technology Inc. (RXT) stock had its last reported insider trading activity 34 days ago on Nov 30. On Nov 30, Director Samant Shashank acquired 19,933 shares at $4.59 each. This transaction resulted in the insider spending $91,520. On Nov 29, Samant Shashank added 100,000 shares at a price of US$4.55. After the transaction, the insider now owns 138,574 shares.

Financial Health

For the three months ended September 29, Rackspace Technology Inc.’s quick ratio was 1.30, while its current ratio was 1.30, indicating its ability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending September 29 is 4.48, and the total debt to equity ratio is 4.61. As far as profitability goes, gross margin for the trailing twelve months is 28.60% percent. Rackspace Technology Inc.’s operating margin stood at -15.40% for the same period. Based on annual data, it had gross profit of $936.8 million and revenue of $3.01 billion.

Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. RXT’s return on assets (ROA) during the last 12 months has been -11.00%. There was a -0.20% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was -56.30%.

Earnings Surprise

According to Rackspace Technology Inc.’s quarterly financial report for the quarter that ended September 29. A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $787.6 million, while revenues rose by 3.19% to $772.2 million. It was predicted that Rackspace Technology Inc.’s quarterly earnings would be $0.1, but it ended up being $0.09, beating the consensus by 11.10%. EBITDA was $42.5 million for the quarter. At the end of Rackspace Technology Inc.’s most recent quarter ended September 29, its liabilities totaled 4.87 billion, while its total debt was $3.97 billion. Equity owned by shareholders amounts to $211.11 million.

Technical Picture

Here’s a quick look at Rackspace Technology Inc.’s (RXT) price momentum from a technical perspective. As of 30 December, the RSI 9-day stood at 40.68%, suggesting the stock is Neutral, with a 67.90% historical volatility rate.

The stochastic %K and %D were 31.99% and 29.00% respectively, while the average true range (ATR) was 0.27. Based on the 14-day stochastic reading of 29.47%, the RSI (14) reading is 37.77%. On the 9-day MACD Oscillator, the stock is at 0.15, and the 14-day reading is at 0.05.

Analyst Ratings

Rackspace Technology Inc. (NASDAQ: RXT) was downgraded by Evercore ISI to a an In-line rating in its latest research report. The stock was previously rated as a an Outperform. Analysts have assigned Rackspace Technology Inc. (RXT) an Hold rating. RXT is a stock that is recommended for selling by 2 brokerage firms, while 8 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 0 rates it overweight and 1 other recommend it as a buy.

What is RXT’s price target for the next 12 months?

The current consensus forecast for the stock is between $2.00 and $8.00, with a median target price of $5.00. In analyzing these forecasts, the average price target given by analysts for Rackspace Technology Inc. (RXT) is $5.29.

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