Rackspace Technology (NASDAQ: RXT – Get Rating) issued an update to its third-quarter 2022 earnings guidance Monday morning. The company provided EPS guidance of $0.08 to $0.10 for the period, compared with the consensus EPS estimate of $0.09. The company issued revenue guidance of $769 million to $779 million, compared with the consensus estimate of $773.19 million.
Rackspace Technology stock performance
Shares of Rackspace Technology opened Monday at $4.08. The company’s fifty-day moving average is $5.51 and its two-hundred-day moving average is $7.68. The company’s gearing ratio is 2.83, its current ratio is 1.23, and its quick ratio is 1.23. Rackspace Technology’s 52-week low was $4.07 and its 52-week high was $18.50.
Rackspace Technology (NASDAQ: RXT – Get Rating) last reported quarterly earnings results on Tuesday, Aug. 9. The company reported earnings per share (EPS) of $0.17 for the quarter, beating the consensus estimate of $0.16 by $0.01. The business reported revenue of $772.2 million for the quarter, compared with the consensus estimate of $784.72 million. Rackspace Technology’s net profit margin was negative 6.37% and its return on equity was 14.07%. The company’s quarterly revenue rose 3.8% year over year. In the same quarter last year, the company earned $0.17 per share. Analysts expect Rackspace Technology to report earnings per share of 0.55 for the year.
Analyst upgrades and downgrades
Several research analysts have already issued reports on the stock. Deutsche Bank AG cut its price target on Rackspace Technology stock to $6.00 from $9.00 and set a hold rating on the stock in a research note on Wednesday, Aug. 10. Raymond James downgraded Rackspace Technology’s stock from Overweight to Market Perform in a research note on Wednesday, Aug. 10. William Blair downgraded Rackspace Technology’s stock from an outperform rating to a market perform rating in a research note on Wednesday, Aug. 10. Evercore ISI lowered its price target on Rackspace Technology stock to $9.00 in a research note on Monday, Aug. 15. Finally, RBC downgraded shares of Rackspace Technology from Overweight to Industry Perform in a research note on Thursday, Aug. 11, and lowered its price target on the stock to $7.00 from $9.00. Two analysts have a sell rating on the stock, seven have a hold rating and two have a buy rating. The company currently has an average rating of Hold and a consensus price target of $9.20, according to MarketBeat.com.
Institutional Investors Weigh Rackspace Technology
Several hedge funds and other institutional investors have recently increased or reduced their stakes in the business. Renaissance Technologies LLC purchased a new position in Rackspace Technology stock for approximately $651,000 in the first quarter. Prudential Financial purchased a new stake in Rackspace Technology for about $627,000 in the second quarter. Rhumbline Advisers increased its stake in Rackspace Technology by 39.6% in the second quarter. After purchasing an additional 23,348 shares during this period, Rhumbline Advisers now own 82,303 shares of the company’s stock, valued at $590,000. Say’s Investments increased its stake in Rackspace Technology by 2.9% in the second quarter. After purchasing an additional 2,189 shares during this period, Say’s Investments now owns 77,628 shares of the company, valued at $575,000. Finally, PDT Partners LLC acquired a new stake in Rackspace Technology for approximately $555,000 in the first quarter. 88.15% of the stock is currently held by institutional investors and hedge funds.
About Rackspace Technologies
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Rackspace Technology, Inc operates as a global multi-cloud technology services company. It operates through multi-cloud services and applications and cross-platform divisions. The company’s Multi-Cloud Services segment provides public and private cloud hosting services that allow customers to identify, manage and optimize the right infrastructure, platforms and services; and professional services related to designing and building multi-cloud solutions and cloud-native applications.
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