Rackspace Technology Inc. (NASDAQ:RXT) saw an upside of 4.69% to $2.23 after adding $0.1 on Tuesday. The 5-day average trading volume is 1,083,286 shares of the company’s common stock. It has gained $2.27 in the past week and touched a new high 2 times within the past 5 days. An average of 1,686,731 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 2,248,386.
RXT’s 1-month performance is -13.57% or -$0.23 on its low of $1.95 reached on 08/07/23. The company’s shares have touched a 52-week low of $1.05 and high of $7.38, with the stock’s rally to the 52-week high happening on 02/02/23. YTD, RXT has lost -24.41% or -$0.72 and has reached a new high 4 times. However, the current price is down -69.78% from the 52-week high price.
Valuation Metrics
RXT stock has a beta of 1.75. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 0.15 while the price-to-book (PB) in the most recent quarter is 20.27, with the price to cash flow ratio at 4.46.
Rackspace Technology Inc.’s quick ratio for the period ended March 30 was 1.20, with the current ratio over the same period at 1.20. As well, the company’s long term debt to equity for the quarter ending March 30 was 149.63, while the total debt to equity was 154.07. In terms of profitability, the gross margin trailing 12 months is 25.80%. The trailing 12-month EBITDA margin is 14.39% while for the period ending March 30, Rackspace Technology Inc.’s operating margin was -40.80%. The firm’s gross profit as reported stood at $856.9 million against revenue of $3.12 billion.
Earnings Surprise
For the quarterly period ending March 30 this year, Net income and sales went down compared to those figures reported in the previous quarter. Net income grew 93.71% to -$612.0 million, while revenue of -$214.0 million was 65.03% off the previous quarter. Analysts expected RXT to announce -$0.03 per share in earnings in its latest quarter, but it posted -$0.02, representing a 33.30% surprise. EBITDA for the quarter stood at more than $73.9 million. RXT stock balance sheet for the quarter ending March 30 shows that total liabilities totaled 4.73 billion, with total debt at $3.94 billion. Shareholders hold equity totaling $215.08 million.
Let’s look briefly at Rackspace Technology Inc. (RXT) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 07 August was 47.52% to suggest the stock is trending Neutral, with historical volatility in this time period at 63.42%.
The stock’s 5-day moving average is $2.11, reflecting a -0.22% or -$0.01 change from its current price. RXT is currently trading -13.04% above its 20-day SMA, +4.44% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by +75.98% and SMA200 by-44.68%.
Stochastic %K and %D was 16.90% and 9.52% and the average true range (ATR) pointed at 0.21. The RSI (14) points at 48.83%, while the 14-day stochastic is at 30.98% with the period’s ATR at 0.22. The stock’s 9-day MACD Oscillator is pointing at -0.05 and -0.17 on the 14-day charts.
Analyst Ratings
In the most recent analyst report for Rackspace Technology Inc. (NASDAQ: RXT), Citigroup downgraded it to a Sell rating. They previously had a Neutral rating on the stock. Analysts offering their rating for RXT stock have a consensus rating for the stock as Hold. Currently, 3 brokerage advisors rate RXT as a “sell,”, while 5 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 0 rates the stock as overweight while 1 have offered a “buy” rating.
What is RXT’s price target for the next 12 months?
Analysts have a consensus price target ranging from a low of $1.50 and a high of $4.15, with their median price target at $2.00. Looking at these predictions, the average price target given by analysts is for Rackspace Technology Inc. (RXT) stock is $2.38.
