Rackspace Technology Inc. [RXT] is 31.16% higher this YTD. Is it still time to buy?

Rackspace Technology Inc. [NASDAQ: RXT] gained 5.13% or 1.22 points to close at $25.00 with a heavy trading volume of 3429916 shares. The company report on April 1, 2021 that Rackspace Technology Collaborates with Blackline Safety to Expand Core Infrastructure to Support Rapid Growth and Industrial Contact Tracing Solution.

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Rackspace TechnologyTM (NASDAQ: RXT), a leading end-to-end, multicloud technology solutions company, announced its collaboration with Blackline Safety Corp. (TSX.V: BLN), a global leader of gas detection and connected safety solutions, to help drive critical software innovation and platform improvements that will support its expanding customer base and employee contact tracing solution.


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Blackline Safety provides wearable safety technology, personal and area gas monitoring, cloud-connected software, data science services and data analytics to leading enterprises around the world. In early 2020, as the COVID-19 pandemic started to take hold, Blackline saw an urgent need to support its customers’ ongoing safety needs with new industrial close contact tracing capabilities. The company engaged with Onica, a Rackspace Technology company and an Amazon Web Services (AWS) Premier Consulting Partner, to help support the rapid development and deployment of their close contact tracing and reporting solution.

It opened the trading session at $24.09, the shares rose to $25.73 and dropped to $23.87, the range by which the price of stock traded the whole day. The daily chart for RXT points out that the company has recorded 29.60% gains over the past six months. However, it is still -63.93% lower than its most recent low trading price.

If we look at the average trading volume of 2.38M shares, RXT reached to a volume of 3429916 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Rackspace Technology Inc. [RXT]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for RXT shares is $26.88 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on RXT stock is a recommendation set at 1.70. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

William Blair have made an estimate for Rackspace Technology Inc. shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on April 01, 2021. While these analysts kept the previous recommendation, Oppenheimer raised their target price to Outperform. The new note on the price target was released on January 26, 2021, representing the official price target for Rackspace Technology Inc. stock. Previously, the target price had yet another raise to $29, while RBC Capital Mkts analysts kept a Outperform rating on RXT stock.

The Average True Range (ATR) for Rackspace Technology Inc. is set at 1.21, with the Price to Sales ratio for RXT stock in the period of the last 12 months amounting to 1.81. The Price to Book ratio for the last quarter was 3.62, with the Price to Cash per share for the same quarter was set at 0.54. Price to Free Cash Flow for RXT in the course of the last twelve months was 24436.25 with Quick ratio for the last quarter at 1.00.

Trading performance analysis for RXT stock

Rackspace Technology Inc. [RXT] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 5.26. With this latest performance, RXT shares gained by 21.95% in over the last four-week period, additionally plugging by 29.60% over the last 6 months.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for RXT stock in for the last two-week period is set at 64.38, with the RSI for the last a single of trading hit 69.15, and the three-weeks RSI is set at 61.59 for Rackspace Technology Inc. [RXT]. The present Moving Average for the last 50 days of trading for this stock 22.20, while it was recorded at 23.83 for the last single week of trading.

Rackspace Technology Inc. [RXT]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Rackspace Technology Inc. [RXT] shares currently have an operating margin of +1.22 and a Gross Margin at +36.36. Rackspace Technology Inc.’s Net Margin is presently recorded at -9.08.

Return on Total Capital for RXT is now 0.62, given the latest momentum, and Return on Invested Capital for the company is -4.71. Return on Equity for this stock declined to -21.54, with Return on Assets sitting at -3.89. When it comes to the capital structure of this company, Rackspace Technology Inc. [RXT] has a Total Debt to Total Equity ratio set at 290.82. Additionally, RXT Total Debt to Total Capital is recorded at 74.41, with Total Debt to Total Assets ending up at 63.10. Long-Term Debt to Equity for the company is recorded at 279.66, with the Long-Term Debt to Total Capital now at 71.56.

Reflecting on the efficiency of the workforce at the company, Rackspace Technology Inc. [RXT] managed to generate an average of -$34,139 per employee. Receivables Turnover for the company is 6.35 with a Total Asset Turnover recorded at a value of 0.43.Rackspace Technology Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.00 and a Current Ratio set at 1.00.

Rackspace Technology Inc. [RXT]: An earnings per share (EPS) analysis

The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for RXT. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Rackspace Technology Inc. go to 24.56%.

An analysis of insider ownership at Rackspace Technology Inc. [RXT]

There are presently around $4,344 million, or 96.00% of RXT stock, in the hands of institutional investors. The top three institutional holders of RXT stocks are: APOLLO MANAGEMENT HOLDINGS, L.P. with ownership of 129,609,000, which is approximately 0% of the company’s market cap and around 1.20% of the total institutional ownership; SEARCHLIGHT CAPITAL PARTNERS, L.P., holding 12,000,000 shares of the stock with an approximate value of $300.0 million in RXT stocks shares; and BOSTON PARTNERS, currently with $135.19 million in RXT stock with ownership of nearly 19.327% of the company’s market capitalization.

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Positions in Rackspace Technology Inc. stocks held by institutional investors increased at the end of May and at the time of the May reporting period, where 78 institutional holders increased their position in Rackspace Technology Inc. [NASDAQ:RXT] by around 22,786,118 shares. Additionally, 46 investors decreased positions by around 5,888,534 shares, while 19 investors held positions by with 145,075,963 shares. The mentioned changes placed institutional holdings at 173,750,615 shares, according to the latest SEC report filing. RXT stock had 37 new institutional investments in for a total of 15,290,398 shares, while 23 institutional investors sold positions of 2,657,324 shares during the same period.

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