As of Friday close, Rackspace Technology Inc.’s (NASDAQ:RXT) stock was up $0.06, moving up 2.80 percent to $2.20. The average number of shares traded per day over the past five days has been 5,871,100 shares. 4 times new highs have been achieved over the past 5 days, with a $0.66 gain in that time frame. In the last twenty days, the average volume was 2,700,830, while in the previous 50 days, it was 2,070,304.
Since last month, RXT stock retreated -9.47%. Shares of the company fell to $1.44 on 09/18/23, the lowest level in the past month. A 52-week high of $6.07 was reached on 02/02/23 after having rallying from a 52-week low of $1.05. Since the beginning of this year, RXT’s stock price has dropped by -25.42% or -$0.75, and marked a new high 4 times. However, the stock has declined by -63.76% since its 52-week high.
RXT stock investors should be aware that Rackspace Technology Inc. (RXT) stock had its last reported insider trading activity 39 days ago on Aug 15. Roberts Anthony C., the Director of the company, purchased of 22,350 shares for $2.23 on Aug 15. It resulted in a $49,840 investment by the insider. Samant Shashank added 19,933 shares at an average price of $4.59 on Nov 30. The insider now owns 158,507 shares following the transaction. On Nov 29, Director Samant Shashank bought 100,000 shares at $4.55 apiece. The transaction was valued at $454,620.
Valuation Metrics
The stock’s beta is 1.71. Besides these, the trailing price-to-sales (P/S) ratio of 0.16, the price-to-book (PB) ratio of 14.67, and the price-to-cash flow ratio of 7.49 may also be considered.
Financial Health
In the three months ended June 29, Rackspace Technology Inc.’s quick ratio stood at 1.20, while its current ratio was 1.20, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending June 29 was 111.44, and the total debt-to-equity ratio was 114.82. On the profitability front, the trailing twelve-month gross margin is 23.70% percent. In the year ended June 29, EBITDA margin amounted to 14.39%, whereas operating margins totaled -40.30%. Based on annual data, RXT earned $856.9 million in gross profit and brought in $3.12 billion in revenue.
A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was -13.40%. Return on equity (ROE) for the past 12 months was -363.60%.
In Rackspace Technology Inc.’s quarter-end financial report for June 29, it reported total debt of $3.17 billion. According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. RXT’s revenue fell -3.5% to $758.7 million during the quarter, while net income inched up to $746.1 million. While analysts expected Rackspace Technology Inc. to report -$0.08 quarterly earnings, the actual figure was -$0.06 per share, beating the consensus estimate by 25.00%. During the quarter, the company generated $63.3 million in EBITDA. The liabilities of Rackspace Technology Inc. were 4.63 billion at the end of its most recent quarter ended June 29, and its total debt was $3.87 billion. The value of shareholders’ equity is $215.89 million.
Technical Picture
This quick technical analysis looks at Rackspace Technology Inc.’s (RXT) price momentum. With a historical volatility rate of 172.67%, the RSI 9-day stood at 59.75% on 22 September.
With respect to its five-day moving average, the current Rackspace Technology Inc. price is up by +42.86% percent or $0.66. At present, RXT shares trade -5.58% below its 20-day simple moving average and +61.76% percent above its 100-day simple moving average. However, the stock is currently trading approximately -17.60% below its SMA50 and -46.34% below its SMA200.
Stochastic coefficient K was 57.72% and Stochastic coefficient D was 48.02%, while ATR was 0.24. Given the Stochastic reading of 63.33% for the 14-day period, the RSI (14) reading has been calculated as 54.26%. As of today, the MACD Oscillator reading stands at 0.34, while the 14-day reading stands at 0.24.
Analyst Ratings
Raymond James upgraded its rating on Rackspace Technology Inc. (NASDAQ: RXT) to an Outperform in a note to investors on September 19, 2023. The analysts firm previously had a Mkt perform rating on the stock.Rackspace Technology Inc. (RXT) has been rated Underweight by analysts. According to 3 brokerage firms, RXT is a sell, and 4 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 1 analyst rate Rackspace Technology Inc. stock as buy, with 0 recommending it as overweight.
With a median target price of $2.50, the current consensus forecast for the stock is $1.50 – $3.50. Based on these forecasts, analysts predict Rackspace Technology Inc. (RXT) will achieve an average price target of $2.57.
