Rackspace Technology Inc. [NASDAQ: RXT] stock went on a downward path that fall over -20.86% on Tuesday, amounting to a one-week price decrease of less than -20.59%. The company report on May 11, 2021 that Rackspace Technology Named a Top 15 Sourcing Standout by ISG.
Rackspace Technology® (NASDAQ: RXT), a leading end-to-end multicloud technology solutions company, announced it has been named a Top 15 Sourcing Standout by Information Services Group (ISG), a leading global technology research and advisory firm.
Rackspace Technology was among the leading providers in the Breakthrough 15 category globally and for the Americas, EMEA and Asia Pacific regions based on annual contract value (ACV) won over the last 12 months, according to the 1Q 2021 Global ISG Index™.
The one-year Rackspace Technology Inc. stock forecast points to a potential upside of 30.6. The average equity rating for RXT stock is currently 1.70, trading closer to a bullish pattern in the stock market.
The market cap for the stock reached $3.95 billion, with 200.60 million shares outstanding and 47.52 million shares in the current float. Compared to the average trading volume of 2.21M shares, RXT stock reached a trading volume of 8975950 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Guru’s Opinion on 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 $27.39 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.
Raymond James have made an estimate for Rackspace Technology Inc. shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on April 20, 2021. The new note on the price target was released on April 01, 2021, representing the official price target for Rackspace Technology Inc. stock. Previously, the target price had yet another raise to $28, while Oppenheimer analysts kept a Outperform rating on RXT stock.
The Average True Range (ATR) for Rackspace Technology Inc. is set at 1.29, with the Price to Sales ratio for RXT stock in the period of the last 12 months amounting to 1.46. The Price to Book ratio for the last quarter was 2.76, with the Price to Cash per share for the same quarter was set at 0.50. Price to Free Cash Flow for RXT in the course of the last twelve months was 19745.69 with Quick ratio for the last quarter at 1.00.
RXT Stock Performance Analysis:
Rackspace Technology Inc. [RXT] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -20.59. With this latest performance, RXT shares dropped by -23.65% in over the last four-week period, additionally plugging by 10.78% 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 20.72, with the RSI for the last a single of trading hit 12.02, and the three-weeks RSI is set at 28.81 for Rackspace Technology Inc. [RXT]. The present Moving Average for the last 50 days of trading for this stock 23.56, while it was recorded at 22.92 for the last single week of trading.
Insight into Rackspace Technology Inc. Fundamentals:
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.
RXT Stock EPS
With the latest financial reports released by the company, Rackspace Technology Inc. posted 0.21/share EPS, while the average EPS was predicted by analysts to be reported at 0.16/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 31.20%. 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%.
Rackspace Technology Inc. [RXT] Insider Position Details
There are presently around $3,257 million, 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 $228.12 million in RXT stocks shares; and VANGUARD GROUP INC, currently with $51.7 million in RXT stock with ownership of nearly 5.667% of the company’s market capitalization.
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 80 institutional holders increased their position in Rackspace Technology Inc. [NASDAQ:RXT] by around 23,878,193 shares. Additionally, 48 investors decreased positions by around 9,667,768 shares, while 24 investors held positions by with 137,796,415 shares. The mentioned changes placed institutional holdings at 171,342,376 shares, according to the latest SEC report filing. RXT stock had 38 new institutional investments in for a total of 17,039,914 shares, while 21 institutional investors sold positions of 2,111,054 shares during the same period.