For Rackspace Technology Inc. [RXT], Analyst sees a drop to $5. What next?

Rackspace Technology Inc. [NASDAQ: RXT] closed the trading session at $3.20 on 12/08/22. The day’s price range saw the stock hit a low of $3.11, while the highest price level was $3.915. The company report on December 6, 2022 that Rackspace Technology Hosted Exchange Environment Update.

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Based on the investigation to date, Rackspace Technology believes that this incident was isolated to its Hosted Exchange business. Rackspace Technology’s other products and services are fully operational, and the company has not experienced an impact to its Email product line and platform. Out of an abundance of caution, Rackspace Technology has put additional security measures in place and will continue to actively monitor for any suspicious activity.

The stocks have a year to date performance of -76.24 percent and weekly performance of -35.22 percent. The stock has been moved at -59.75 percent over the last six months. The stock has performed -34.02 percent around the most recent 30 days and changed -39.85 percent over the most recent 3-months.

If compared to the average trading volume of 1.90M shares, RXT reached to a volume of 8348234 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here’s what leading stock market gurus have to say 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 $5.57 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 3.10. 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.

Evercore ISI have made an estimate for Rackspace Technology Inc. shares, keeping their opinion on the stock as In-line, with their previous recommendation back on October 11, 2022. While these analysts kept the previous recommendation, JP Morgan dropped their target price from $7 to $5. The new note on the price target was released on August 16, 2022, representing the official price target for Rackspace Technology Inc. stock. Previously, the target price had yet another drop from $9 to $7, while RBC Capital Mkts kept a Sector Perform rating on RXT stock.

The Average True Range (ATR) for Rackspace Technology Inc. is set at 0.43, with the Price to Sales ratio for RXT stock in the period of the last 12 months amounting to 0.22. The Price to Book ratio for the last quarter was 0.83, with the Price to Cash per share for the same quarter was set at 1.16. Price to Free Cash Flow for RXT in the course of the last twelve months was 3.58 with Quick ratio for the last quarter at 1.30.

RXT stock trade performance evaluation

Rackspace Technology Inc. [RXT] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -35.22. With this latest performance, RXT shares dropped by -34.02% in over the last four-week period, additionally sinking by -59.75% over the last 6 months – not to mention a drop of -76.61% in the past year of trading.

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 29.82, with the RSI for the last a single of trading hit 21.82, and the three-weeks RSI is set at 34.75 for Rackspace Technology Inc. [RXT]. The present Moving Average for the last 50 days of trading for this stock 4.61, while it was recorded at 3.98 for the last single week of trading, and 7.16 for the last 200 days.

Rackspace Technology Inc. [RXT]: An insightful look at the core fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Rackspace Technology Inc. [RXT] shares currently have an operating margin of +1.84 and a Gross Margin at +31.13. Rackspace Technology Inc.’s Net Margin is presently recorded at -7.25.

Return on Equity for this stock declined to -16.10, with Return on Assets sitting at -3.44.

Rackspace Technology Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.30 and a Current Ratio set at 1.30.

Earnings per share (EPS) analysis for Rackspace Technology Inc. [RXT] stock

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 10.00%.

Rackspace Technology Inc. [RXT]: Insider Ownership positions

There are presently around $622 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 4.30% of the total institutional ownership; FIRST TRUST ADVISORS LP, holding 29,795,064 shares of the stock with an approximate value of $95.34 million in RXT stocks shares; and MACKENZIE FINANCIAL CORP, currently with $22.78 million in RXT stock with ownership of nearly -0.876% of the company’s market capitalization.

66 institutional holders increased their position in Rackspace Technology Inc. [NASDAQ:RXT] by around 18,219,515 shares. Additionally, 84 investors decreased positions by around 9,381,624 shares, while 17 investors held positions by with 166,908,620 shares. The mentioned changes placed institutional holdings at 194,509,759 shares, according to the latest SEC report filing. RXT stock had 27 new institutional investments in for a total of 989,381 shares, while 39 institutional investors sold positions of 5,350,502 shares during the same period.

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