The stock price of Rackspace Technology Inc (NASDAQ: RXT) has jumped by 3.76 compared to previous close of 1.86. Despite this, the company has seen a gain of 10.92% in its stock price over the last five trading days. GlobeNewsWire reported 2024-04-24 that SAN ANTONIO, April 24, 2024 (GLOBE NEWSWIRE) — Rackspace Technology ® (NASDAQ: RXT)— the leading end-to-end, hybrid multicloud and AI technology solutions company, today announced that it will release its first quarter 2024 financial results after the market closes on Thursday, May 9, 2024. Amar Maletira, Chief Executive Officer, and Mark Marino, Chief Financial Officer, will host a conference call on the day of the release (May 9, 2024) at 5:00 PM ET to discuss the Company’s financial results.
Is It Worth Investing in Rackspace Technology Inc (NASDAQ: RXT) Right Now?
Moreover, the 36-month beta value for RXT is 1.85. Analysts have varying opinions on the stock, with 0 analysts rating it as a “buy,” 0 as “overweight,” 0 as “hold,” and 0 as “sell.”
The public float for RXT is 51.95M and currently, short sellers hold a 11.96% of that float. On May 09, 2024, RXT’s average trading volume was 1.33M shares.
RXT’s Market Performance
The stock of Rackspace Technology Inc (RXT) has seen a 10.92% increase in the past week, with a 14.88% rise in the past month, and a 21.38% gain in the past quarter. The volatility ratio for the week is 4.43%, and the volatility levels for the past 30 days are at 5.79% for RXT. The simple moving average for the past 20 days is 13.95% for RXT’s stock, with a 8.23% simple moving average for the past 200 days.
Analysts’ Opinion of RXT
Many brokerage firms have already submitted their reports for RXT stocks, with UBS repeating the rating for RXT by listing it as a “Neutral.” The predicted price for RXT in the upcoming period, according to UBS is $1.40 based on the research report published on November 07, 2023 of the previous year 2023.
Raymond James, on the other hand, stated in their research note that they expect to see RXT reach a price target of $3.50. The rating they have provided for RXT stocks is “Outperform” according to the report published on September 19th, 2023.
Citigroup gave a rating of “Sell” to RXT, setting the target price at $1.50 in the report published on July 25th of the previous year.
RXT Trading at 10.83% from the 50-Day Moving Average
After a stumble in the market that brought RXT to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -37.74% of loss for the given period.
Volatility was left at 5.79%, however, over the last 30 days, the volatility rate increased by 4.43%, as shares surge +14.50% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -2.76% lower at present.
During the last 5 trading sessions, RXT rose by +11.21%, which changed the moving average for the period of 200-days by -21.02% in comparison to the 20-day moving average, which settled at $1.7060. In addition, Rackspace Technology Inc saw -3.50% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at RXT starting from Maletira Amar, who sale 37,446 shares at the price of $1.92 back on Feb 20 ’24. After this action, Maletira Amar now owns 4,638,423 shares of Rackspace Technology Inc, valued at $71,930 using the latest closing price.
Lillie Brian, the EVP, President Private Cloud of Rackspace Technology Inc, sale 139,701 shares at $1.62 during a trade that took place back on Jan 25 ’24, which means that Lillie Brian is holding 1,608,258 shares at $226,316 based on the most recent closing price.
Stock Fundamentals for RXT
Current profitability levels for the company are sitting at:
- -0.12 for the present operating margin
- 0.2 for the gross margin
The net margin for Rackspace Technology Inc stands at -0.28. The total capital return value is set at -0.11. Equity return is now at value -352.76, with -17.54 for asset returns.
Based on Rackspace Technology Inc (RXT), the company’s capital structure generated 1.05 points at debt to capital in total, while cash flow to debt ratio is standing at 0.13. The debt to equity ratio resting at -19.41. The interest coverage ratio of the stock is -1.49.
Currently, EBITDA for the company is 304.5 million with net debt to EBITDA at 10.64. When we switch over and look at the enterprise to sales, we see a ratio of 1.24. The receivables turnover for the company is 8.44for trailing twelve months and the total asset turnover is 0.72. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.92.
Conclusion
To wrap up, the performance of Rackspace Technology Inc (RXT) has been better in recent times. The stock has received a mixed of “buy” and “hold” ratings from analysts. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
