Rackspace Technology Inc (NASDAQ: RXT) Stock: Looks Like A Good Investment

Rackspace Technology Inc (NASDAQ:RXT) shares, rose in value, with the stock price up by 12.20% to the previous day’s close as strong demand from buyers drove the stock to $1.84.

Actively observing the price movement in the last trading, the stock closed the session at $1.64. The value of beta (5-year monthly) was 1.99. Referring to stock’s 52-week performance, its high was $3.10, and the low was $1.05. On the whole, RXT has fluctuated by -6.12% over the past month.

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With the market capitalization of Rackspace Technology Inc currently standing at about $398.19 million, investors are eagerly awaiting this quarter’s results, scheduled for Mar 12, 2024. As a result, investors might want to see an improvement in the stock’s price before the company announces its earnings report. Analysts are projecting the company’s earnings per share (EPS) to be -$0.13, which is expected to increase to -$0.09 for fiscal year -$0.38 and then to about -$0.09 by fiscal year 2025. Data indicates that the EPS growth is expected to be -153.30% in 2025, while the next year’s EPS growth is forecast to be 76.30%.

Analysts have estimated the company’s revenue for the quarter at $684.25 million, with a low estimate of $682.3 million and a high estimate of $685.2 million. According to the average forecast, sales growth in current quarter could jump down -9.80%, compared to the corresponding quarter of last year. Wall Street analysts also predicted that in 2025, the company’s y-o-y revenues would reach $2.75 billion, representing a decrease of -6.90% from the revenues reported in the last year’s results.

Revisions could be a useful indicator to get insight on short-term price movement; so for the company, there were no upward and no downward review(s) in last seven days. We see that RXT’s technical picture suggests that short-term indicators denote the stock is a Hold on average. However, medium term indicators have put the stock in the category of 50% Buy while long term indicators on average have been pointing out that it is a Hold.

The stock’s technical analysis shows that the PEG ratio is about 0, with the price of RXT currently trading nearly 7.12% and 2.49% away from the simple moving averages for 20 and 50 days respectively. The Relative Strength Index (RSI, 14) currently indicates a reading of 54.75, while the 7-day volatility ratio is showing 9.84% which for the 30-day chart, stands at 9.67%. Furthermore, Rackspace Technology Inc (RXT)’s beta value is 1.92, and its average true range (ATR) is 0.16.

A comparison of Rackspace Technology Inc (RXT) with its peers suggests the former has fared considerably weaker in the market. RXT showed an intraday change of 12.20% in last session, and over the past year, it shrunk by -2.13%%.

Data on historical trading for Rackspace Technology Inc (NASDAQ:RXT) indicates that the trading volumes over the past 10 days have averaged 1.2 million and over the past 3 months, they’ve averaged 1.45 million. According to company’s latest data on outstanding shares, there are 217.40 million shares outstanding.

Nearly 76.76% of Rackspace Technology Inc’s shares belong to company insiders and institutional investors own 21.01% of the company’s shares. The data on short interest also indicates that stock shorts accounted for 6.54 million shares as on Mar 15, 2024, resulting in a short ratio of 3.11. According to the data, the short interest in Rackspace Technology Inc (RXT) stood at 2.97% of shares outstanding as of Mar 15, 2024; the number of short shares registered in Feb 15, 2024 reached 6.1 million. The stock has fallen by -8.00% since the beginning of the year, thereby showing the potential of a further growth. This could raise investors’ confidence to be optimistic about the RXT stock heading into the next quarter.