Are You Looking To Buy Rackspace Technology Inc. (RXT)? First, Read This

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Rackspace Technology Inc. (NASDAQ:RXT) finished Wednesday with an addition of $0.07 to close at $2.62, an upside of 2.75 percent. An average of 1,763,740 shares of common stock have been traded in the last five days. There was a fall of -$0.33 in the past week, and it reached a new high 3 times over the past 12 months. The last 20 days have seen an average of 3,218,300 shares traded, while the 50-day average volume stands at 2,367,022.

RXT stock has decreased by -18.89% in the last month. The company shares reached their 1-month lowest point of $2.51 on 12/27/22. With the stock rallying to its 52-week high on 01/03/23, shares of the company touched a low of $2.51 and a high of $13.71 in 52 weeks. It has reached a new high 1 time so far this year and lost -11.19% or -$0.33 in price. In spite of this, the price is down -80.89% from the 52-week high.


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Valuation Metrics

Rackspace Technology Inc. (RXT) has a trailing price-to-sales (P/S) ratio at 0.18, the price-to-book (PB) ratio at 0.68, and the price-to-cash flow ratio at 2.94.

Financial Health

The quick ratio of Rackspace Technology Inc. for the three months ended September 29 was 1.30, and the current ratio was 1.30, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 4.48 and a total debt to equity ratio of 4.61 for the quarter ending September 29. Its gross profit as reported stood at $936.8 million compared to revenue of $3.01 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Rackspace Technology Inc.’s return on assets was -11.00%.

Earnings Surprise

For the three-month period that ended September 29, Rackspace Technology Inc. had $3.3 billion in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of -$511.7 million in the quarter, while revenues were grew 93.2%. The analyst consensus anticipated Rackspace Technology Inc.’s latest quarter earnings to come in at $0.09 per share, but it turned out to be $0.1, a 11.10% surprise. For the quarter, EBITDA amounted to $42.5 million. Shareholders own equity worth $211.11 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Rackspace Technology Inc. (RXT) price momentum. RSI 9-day as of the close on 11 January was 34.33%, suggesting the stock is Neutral, with historical volatility in this time frame at 76.50%.

As of today, RXT’s price is $2.66 -11.19% or -$0.33 from its 5-day moving average. RXT is currently trading -25.36% lower than its 20-day SMA and -52.01% lower than its 100-day SMA. However, the stock’s current price level is -48.93% below the SMA50 and -76.20% below the SMA200.

The stochastic %K and %D were 16.33% and 21.94%, respectively, and the average true range (ATR) was 0.22. With the 14-day stochastic at 17.40% and the average true range at 0.26, the RSI (14) stands at 34.48%. The stock has reached -0.16 on the 9-day MACD Oscillator while the 14-day reading was at -0.13.

Analyst Ratings

Evercore ISI downgraded Rackspace Technology Inc. (NASDAQ: RXT) to a an In-line rating in its most recent analyst report. Previously, the stock was rated as an Outperform. The consensus rating for Rackspace Technology Inc. (RXT) among analysts is Hold. According to current brokerage recommendations, 2 brokerage firms advise that investors sell RXT, while 8 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 1 others rate it as a “buy”.

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

Analysts predict a range of price targets between $2.00 and $8.00, with a median target of $5.00. Taking a look at these predictions, the average price target given by analysts for Rackspace Technology Inc. (RXT) stock is $5.29.

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