Rackspace Technology (NASDAQ:RXT) Provides Earnings Guidance for the Fourth Quarter of 2022
Rackspace Technology (NASDAQ:RXT), which previously provided a projection of its expected profit for the fourth quarter of 2022, revised that projection on Friday. The company expected earnings per share (EPS) of between $0.04 and $0.06 for the period in question, which is lower than the average estimate of $0.07 that has been floating around. The company provided a revenue forecast that falls somewhere in the range of $738.00 million to $746.00 million, which is significantly lower than the consensus revenue estimate of $781.17 million.
Various research projects have been carried out with RXT as the focus of their attention. In a research report made available to the public on November 21st, Citigroup announced that the price target they set for shares of Rackspace Technology was reduced from $7.00 to $5.00. Barclays reduced their price objective on shares of Rackspace Technology to $4.00 from their previous price objective of $5.00 in a research note released on Monday, October 3rd. Additionally, the brokerage has rated the company’s stock as underweight, meaning it is undervalued. Evercore ISI stated in a research note released on October 20th that they now have a $5.00 price target on Rackspace Technology. Credit Suisse Group rated Rackspace Technology as a better investment in a research report distributed on November 17, and the report was written. The report was titled “Rackspace Technology”, and the price objective for the company was raised from $7.00 to $8.00. On Tuesday, August 16, JPMorgan Chase & Co. lowered their price target on shares of Rackspace Technology from $7.00 to $5.00 and changed their rating for the company’s stock from neutral to underweight. A total of ten buy ratings, nine hold ratings and two sell ratings have been assigned to the stock by various analysts. The recommendation to sell the shares was made by one analyst. The information that can be found on Bloomberg.com indicates that the stock is currently rated as an average recommendation of “Hold” and that analysts have set their price target for the company at $7.60.
On Friday, the NASDAQ RXT market opened at $3.20. Trading has begun. The current ratio, the quick ratio, and the overall debt-to-equity ratio all come in at 1.25, while the overall debt-to-equity ratio comes in at 4.48. Rackspace Technology can be purchased for anywhere between $3.11 and $14.38 at any given time, with this price range representing a swing that has occurred over the past 52 weeks. The share price has a moving average of $4.62 over the past 50 days, and over the past 200 days that number has increased to $5.80.
Shashank Samant, who is currently a Director at Rackspace Technology, bought one hundred thousand shares of the company’s stock on Tuesday, November 29th. Based on the stock’s current average price of $4.55 per share, it was determined that the price of the stock should be $455,000.00. As a direct result of the acquisition, the director now owns a total of 138,574 shares of the company’s stock, and the value of those shares according to the current market is $630,511.75. The Securities and Exchange Commission (SEC) was able to obtain notice of the transaction through the use of a legal filing available online that served as the medium for this communication. The current percentage of the company’s shares held by company insiders is 2.10 percent.
In recent months, institutional investors, such as hedge funds, have either increased or decreased their stakes in the company, depending on the path they chose. During the first three months of the year, PNC Financial Services Group Inc. increasing the proportion of Rackspace Technology stock he owned by 693.1 percent. PNC Financial Services Group Inc. now has a total ownership interest in the company equal to 3,347 shares after buying an additional 2,925 shares during the most recent period for a total cost of $37,000. This brings the company’s total number of shares to 3,347. stand. Point72 Hong Kong Ltd. increased the percentage ownership it held in Rackspace Technology by 144.4% during the second quarter of the fiscal year. During the first three months of 2018, Quantbot Technologies LP made a new investment of approximately $79,000 in Rackspace Technology. Point72 Hong Kong Ltd now owns 4,831 shares of the company’s stock valued at $35,000 after purchasing an additional 2,854 shares during the last quarter. This issue has been completed.During the third quarter, Ensign Peak Advisors, Inc. made a payment to Rackspace Technology that was close to $31,000 to fill a recently created position. Finally, and most importantly, Tower Research Capital LLC (TRC) boosted its holdings in Rackspace Technology by 29.6% during the third quarter. This was the most important of the three developments. Since the beginning of the most recent quarter, Tower Research Capital LLC (TRC) acquired an additional 3,215 shares of the company’s stock, bringing the total number of shares it owns to a value of $57,000. This increases the total value of the shares he owns to $57,000. At the moment, institutions control 88.15 percent of the total shares of the company.
Rackspace Technology, Inc. is widely regarded as the industry standard bearer for being the leading provider of cloud computing services on a global scale. The business is organized into two distinct divisions, referred to as “applications” and “cross-platform” and “multicloud” services, respectively. Customers are assisted in selecting, managing and optimizing the appropriate infrastructure, platforms and services through the company’s Multicloud Services division, which provides managed cloud services for both public and private cloud environments. In addition, the division provides professional services for the design and construction of cloud-native applications as well as multi-cloud solutions.