The stock of Rackspace Technology Inc. (NASDAQ:RXT) increased by $0.53 on Tuesday to finish at $2.01, up 35.81 percent. The last five days have seen an average of 5,508,640 shares of common stock traded. 4 times new highs were reached in the current year, with a fall of -$0.9400. The average number of shares traded over the last 20 days was 2,417,930, while the average volume over the last 50 days totaled 1,977,056.
RXT stock dropped -10.86% since last month. On 09/18/23, the company’s shares reached a one-month low of $1.4400. The stock touched a high of $6.07 on 02/02/23, after rallying from a low of $1.05 in 52 weeks. The price of RXT stock has declined by -31.86% or -$0.9400 this year, reaching a new high 4 times. Still, the stock price is down -66.89% from the 52-week high.
Insider Transactions
RXT stock investors should be aware that Rackspace Technology Inc. (RXT) stock had its last reported insider trading activity 36 days ago on Aug 15. On Aug 15, Director Roberts Anthony C. acquired 22,350 shares at $2.23 each. This transaction resulted in the insider spending $49,840. On Nov 30, Samant Shashank added 19,933 shares at a price of US$4.59. After the transaction, the insider now owns 158,507 shares. Director Samant Shashank had earlier bought 100,000 shares on Nov 29 for $4.55 a share. The transaction was completed for $454,620.
Valuation Metrics
Beta for the stock is 1.78. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 0.14, the price-to-book (PB) ratio of 13.40, and the price-to-cash flow ratio of 6.85.
Financial Health
For the three months ended June 29, Rackspace Technology Inc.’s quick ratio was 1.20, while its current ratio was 1.20, indicating its ability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending June 29 is 111.44, and the total debt to equity ratio is 114.82. As far as profitability goes, gross margin for the trailing twelve months is 23.70% percent. Rackspace Technology Inc.’s EBITDA margin for the year ended June 29 was 14.39%, whereas its operating margin stood at -40.30% for the same period. Based on annual data, it had gross profit of $856.9 million and revenue of $3.12 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 -26.50%. There was a -13.40% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was -363.60%.
Earnings Surprise
According to Rackspace Technology Inc.’s quarterly financial report for the quarter that ended June 29. A lower net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $746.1 million, while revenues fell by -3.5% to $758.7 million. It was predicted that Rackspace Technology Inc.’s quarterly earnings would be -$0.06, but it ended up being -$0.08, beating the consensus by 25.00%. EBITDA was $63.3 million for the quarter. At the end of Rackspace Technology Inc.’s most recent quarter ended June 29, its liabilities totaled 4.63 billion, while its total debt was $3.87 billion. Equity owned by shareholders amounts to $215.89 million.
Technical Picture
Here’s a quick look at Rackspace Technology Inc.’s (RXT) price momentum from a technical perspective. As of 19 September, the RSI 9-day stood at 52.88%, suggesting the stock is Neutral, with a 197.74% historical volatility rate.
The stochastic %K and %D were 17.82% and 8.95% respectively, while the average true range (ATR) was 0.2400. Based on the 14-day stochastic reading of 46.72%, the RSI (14) reading is 49.19%. On the 9-day MACD Oscillator, the stock is at -0.0500, and the 14-day reading is at -0.3100.
Analyst Ratings
In its most recent analyst report, Raymond James raised its rating on Rackspace Technology Inc. (NASDAQ: RXT) to an Outperform. Prior to this, analysts firm rated the stock as a Mkt perform. Analysts have assigned Rackspace Technology Inc. (RXT) an Underweight rating. RXT is a stock that is recommended for selling by 3 brokerage firms, while 4 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 1 rate it overweight and 0 others 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 $1.50 and $3.50, with a median target price of $2.50. In analyzing these forecasts, the average price target given by analysts for Rackspace Technology Inc. (RXT) is $2.57.
