Rackspace Technology Inc. (NASDAQ:RXT) finished Wednesday with an addition of $0.27 to close at $2.43, an upside of 12.50 percent. An average of 1,256,920 shares of common stock have been traded in the last five days. There was a fall of -$0.01 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 1,396,020 shares traded, while the 50-day average volume stands at 2,244,804.
RXT stock has decreased by -0.82% in the last month. The company shares reached their 1-month lowest point of $1.95 on 08/07/23. With the stock rallying to its 52-week high on 02/02/23, shares of the company touched a low of $1.05 and a high of $6.45 in 52 weeks. It has reached a new high 4 times so far this year and lost -17.63% or -$0.52 in price. In spite of this, the price is down -62.33% from the 52-week high.
Valuation Metrics
Rackspace Technology Inc. (RXT) stock’s beta is 1.71. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 0.17, the price-to-book (PB) ratio at 16.20, and the price-to-cash flow ratio at 8.32.
Financial Health
The quick ratio of Rackspace Technology Inc. for the three months ended June 29 was 1.20, and the current ratio was 1.20, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 111.44 and a total debt to equity ratio of 114.82 for the quarter ending June 29. Rackspace Technology Inc.’s EBITDA margin for the year ending June 29 is 14.39%, while its operating margin for the same period stands at -40.30%. Its gross profit as reported stood at $856.9 million compared to revenue of $3.12 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 -26.50%.
Earnings Surprise
For the three-month period that ended June 29, Rackspace Technology Inc. had $3.17 billion in total debt. In the quarter under review, the net income was down than the previous quarter. The company posted a net income of -$27.2 million in the quarter, while revenues were shrunk -49.26%. The analyst consensus anticipated Rackspace Technology Inc.’s latest quarter earnings to come in at -$0.08 per share, but it turned out to be -$0.06, a 25.00% surprise. For the quarter, EBITDA amounted to $63.3 million. Shareholders own equity worth $215.89 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 23 August was 58.05%, suggesting the stock is Neutral, with historical volatility in this time frame at 88.70%.
As of today, RXT’s price is $2.28 -0.41% or -$0.01 from its 5-day moving average. RXT is currently trading +0.83% higher than its 20-day SMA and +38.86% higher than its 100-day SMA. However, the stock’s current price level is +42.11% above the SMA50 and -46.12% below the SMA200.
The stochastic %K and %D were 49.23% and 45.81%, respectively, and the average true range (ATR) was 0.24. With the 14-day stochastic at 73.85% and the average true range at 0.24, the RSI (14) stands at 55.15%. The stock has reached -0.01 on the 9-day MACD Oscillator while the 14-day reading was at 0.02.
Analyst Ratings
Citigroup downgraded Rackspace Technology Inc. (NASDAQ: RXT) to a a Sell rating in its most recent analyst report. Previously, the stock was rated as a Neutral. The consensus rating for Rackspace Technology Inc. (RXT) among analysts is Hold. According to current brokerage recommendations, 3 brokerage firms advise that investors sell RXT, while 5 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 $1.50 and $5.00, with a median target of $2.50. Taking a look at these predictions, the average price target given by analysts for Rackspace Technology Inc. (RXT) stock is $2.79.
