Rackspace Technology (NASDAQ:RXT – Get Rating ) issued an update to its Q3 2022 earnings guidance on Monday morning. The company provided EPS guidance of $0.08-$0.10 for the period, compared to the consensus estimate of $0.09. The company posted revenue guidance of $769.00 million to $779.00 million, compared to the consensus estimate of $773.19 million.
Rackspace Technology Stock Performance
Shares of Rackspace Technology stock opened at $4.08 on Monday. The company’s fifty day moving average is $5.51 and its two hundred day moving average is $7.68. The company has a debt-to-equity ratio of 2.83, a current ratio of 1.23, and a quick ratio of 1.23. Rackspace Technology has a 52-week low of $4.07 and a 52-week high of $18.50.
Rackspace Technology (NASDAQ:RXT – Get Rating) last posted its quarterly earnings results on Tuesday, August 9th. The company reported $0.17 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.16 by $0.01. The business had revenue of $772.20 million for the quarter, compared to the consensus estimate of $784.72 million. Rackspace Technology had a negative net margin of 6.37% and a positive return on equity of 14.07%. The company’s quarterly revenue was up 3.8% year over year. In the same quarter last year, the company earned $0.17 EPS. analysts expect that Rackspace Technology will post 0.55 earnings per share for the current year.
Promote and demote an analyst
A number of research analysts have issued reports on the stock. Deutsche Bank Aktiengesellschaft reduced their target price on shares of Rackspace Technology from $9.00 to $6.00 and set a hold rating on the stock in a research report on Wednesday, August 10th. Raymond James downgraded shares of Rackspace Technology from an outperform rating to a market perform rating in a research report on Wednesday, August 10th. William Blair downgraded shares of Rackspace Technology from an outperform rating to a market perform rating in a research report on Wednesday, August 10th. Evercore ISI cut their target price on shares of Rackspace Technology to $9.00 in a research report on Monday, August 15th. Finally, Royal Bank of Canada downgraded shares of Rackspace Technology from an outperform rating to a sector perform rating and cut their target price for the stock from $9.00 to $7.00 in a research note on Thursday, August 11th. Two analysts have rated the stock with a sell rating, seven have given a hold rating and two have issued a buy rating to the stock. According to MarketBeat.com, the company currently has an average rating of Hold and a consensus target price of $9.20.
Institutional investors weigh in on Rackspace Technology
Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Renaissance Technologies LLC bought a new position in shares of Rackspace Technology in the first quarter valued at about $651,000.Prudential Financial Inc. bought a new stake in Rackspace Technology in the second quarter valued at about $627,000. Rhumbline Advisers boosted its holdings in Rackspace Technology by 39.6% in the second quarter. Rhumbline Advisers now owns 82,303 shares of the company’s stock valued at $590,000 after purchasing an additional 23,348 shares during the period. Sei Investments Co. boosted its holdings in Rackspace Technology by 2.9% in the second quarter. Now Sei Investments Co. now owns 77,628 shares of the company’s stock valued at $575,000 after purchasing an additional 2,189 shares during the period. Finally, PDT Partners LLC bought a new stake in Rackspace Technology during the first quarter valued at about $555,000. 88.15% of the stock is currently owned by institutional investors and hedge funds.
About Rackspace Technology
Rackspace Technology, Inc. operates as a multi-cloud technology services company worldwide. It operates through Multicloud Services and Apps & Cross Platform segments. The company’s Multicloud Services segment provides public and private cloud managed services that enable customers to define, manage and optimize the right infrastructure, platforms and services; and professional services related to the design and construction of multi-cloud solutions and cloud applications.
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