UBS has recently initiated Rackspace Technology, Inc. (RXT) stock to Neutral rating, as announced on November 7, 2023, according to Finviz. Earlier, on September 19, 2023, Raymond James had raised the stock from a Mkt Perform to Outperform, setting a price target of $3.50. Citigroup also reduced Sell rating with a price target of $1.50. Additionally, Evercore ISI reduced their rating on October 11, 2022, with a target price of $5. JP Morgan analysts, in their report published on August 16, 2022, also reduced Underweight rating and set a price target of $5 for Rackspace Technology, Inc.’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
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Rackspace Technology, Inc. (RXT) Stock Trading Recap
On Monday, Rackspace Technology, Inc. (RXT) stock saw a decline, ending the day at $2.46 which represents a decrease of $-0.05 or -1.99% from the prior close of $2.51. The stock opened at $2.51 and touched a low of $2.38 during the day, reaching a high of $2.52. The volume of shares traded was 0.56 million falling short of the average volume of 1.15 million.
RXT Stock Performance and Moving Averages
In recent trading, Rackspace Technology, Inc. (RXT) stock price has shown some volatility, fluctuating 8.37% over the last five trades and 11.31% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 54.72%, and it has plunged by -2.38% in the previous three months. Currently, RXT is trading at 5.22%, 3.55%, and 22.61% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, RXT, a Technology sector stock, is trading -22.61% below its 52-week high but remains 113.91% above its 52-week low. The Average True Range (ATR) (14 days) of 0.16 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Rackspace Technology, Inc.’s Profitability and Valuation Ratios
Rackspace Technology, Inc.’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of -5.31% and a profit margin of -28.79%, with a gross margin of 54.72%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Rackspace Technology, Inc.’s market capitalization stands at $556.03 million. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. Additionally, the Price-to-Sales Ratio is 0.2, reflecting the market’s valuation of the company’s sales.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 74.53% of Rackspace Technology, Inc. (RXT)’s shares, while financial institutions hold 19.48%.
Notable insider trades include Maletira Amar, Chief Executive Officer at Rackspace Technology, Inc. (RXT), who sold 52206 shares on Aug 21 ’24, at $2.35 each, totaling $0.12 million. On Jul 25 ’24, SINHA DHARMENDRA KUMAR, EVP, President, Public Cloud, sold 149249 shares for $2.36 each, amounting to $0.35 million. Additionally, on May 16 ’24, TEAL-GUESS KELLIE sold 61393 shares at $2.13 each, generating $0.13 million.
