Is Rackspace Technology Stock a Good Investment?
Rackspace Technology Investment Advice | RXT |
- Examine Rackspace Technology's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Rackspace Technology's leadership team and their track record. Good management can help Rackspace Technology navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Application Software space and any emerging trends that could impact Rackspace Technology's business and its evolving consumer preferences.
- Compare Rackspace Technology's performance and market position to its competitors. Analyze how Rackspace Technology is positioned in terms of product offerings, innovation, and market share.
- Check if Rackspace Technology pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Rackspace Technology's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Rackspace Technology stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Rackspace Technology is a good investment.
Sell | Buy |
Strong Sell
Market Performance | OK | Details | |
Volatility | Very risky | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Above Average | Details | |
Economic Sensitivity | Actively responds to the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Hold | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Rackspace Technology Stock
Researching Rackspace Technology's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 85.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 0.81. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Rackspace Technology recorded a loss per share of 3.45. The entity had not issued any dividends in recent years. The firm had 1:12 split on the 20th of July 2020.
To determine if Rackspace Technology is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Rackspace Technology's research are outlined below:
| Rackspace Technology had very high historical volatility over the last 90 days | |
| Rackspace Technology has high likelihood to experience some financial distress in the next 2 years | |
| The company reported the last year's revenue of 2.96 B. Reported Net Loss for the year was (837.8 M) with profit before taxes, overhead, and interest of 867.8 M. | |
| Over 85.0% of the company shares are owned by institutional investors | |
| Latest headline from gurufocus.com: Rackspace Technology Launches Adaptive Cloud Manager to Support Rapid Growth of Hybrid Cloud ... |
Rackspace Technology Quarterly Good Will |
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Rackspace Technology uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Rackspace Technology. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Rackspace Technology's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 28th of February 2024 Upcoming Quarterly Report | View | |
| 14th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 28th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Rackspace Technology's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Rackspace Technology's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2024-03-12 | 2023-12-31 | -0.04 | -0.03 | 0.01 | 25 | ||
2023-11-07 | 2023-09-30 | -0.05 | -0.04 | 0.01 | 20 | ||
2023-05-09 | 2023-03-31 | -0.03 | -0.02 | 0.01 | 33 | ||
2023-02-22 | 2022-12-31 | 0.05 | 0.06 | 0.01 | 20 | ||
2022-11-09 | 2022-09-30 | 0.09 | 0.1 | 0.01 | 11 | ||
2024-05-09 | 2024-03-31 | -0.13 | -0.11 | 0.02 | 15 | ||
2023-08-08 | 2023-06-30 | -0.08 | -0.06 | 0.02 | 25 | ||
2024-11-12 | 2024-09-30 | -0.07 | -0.04 | 0.03 | 42 |
Know Rackspace Technology's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Rackspace Technology is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Rackspace Technology backward and forwards among themselves. Rackspace Technology's institutional investor refers to the entity that pools money to purchase Rackspace Technology's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Jacobs Levy Equity Management, Inc. | 2024-09-30 | 814.6 K | Federated Hermes Inc | 2024-09-30 | 771.5 K | Amvescap Plc. | 2024-06-30 | 758.8 K | Jpmorgan Chase & Co | 2024-06-30 | 723.1 K | Ubs Group Ag | 2024-06-30 | 644 K | Jane Street Group Llc | 2024-06-30 | 606.9 K | Charles Schwab Investment Management Inc | 2024-09-30 | 590.7 K | Northern Trust Corp | 2024-09-30 | 556.5 K | Wells Fargo & Co | 2024-06-30 | 470.2 K | Apollo Management Holdings Lp | 2024-09-30 | 129.6 M | Legal & General Group Plc | 2024-06-30 | 7.8 M |
Rackspace Technology's market capitalization trends
The company currently falls under 'Small-Cap' category with a total capitalization of 600.78 M.Market Cap |
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Rackspace Technology's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (0.52) | (0.54) | |
| Return On Capital Employed | (0.27) | (0.26) | |
| Return On Assets | (0.20) | (0.19) | |
| Return On Equity | 5.42 | 5.69 |
Determining Rackspace Technology's profitability involves analyzing its financial statements and using various financial metrics to determine if Rackspace Technology is a good buy. For example, gross profit margin measures Rackspace Technology's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Rackspace Technology's profitability and make more informed investment decisions.
Please note, the imprecision that can be found in Rackspace Technology's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Rackspace Technology. Check Rackspace Technology's Beneish M Score to see the likelihood of Rackspace Technology's management manipulating its earnings.
Evaluate Rackspace Technology's management efficiency
Rackspace Technology has Return on Asset of (0.0178) % which means that on every $100 spent on assets, it lost $0.0178. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of (3.5276) %, meaning that it generated no profit with money invested by stockholders. Rackspace Technology's management efficiency ratios could be used to measure how well Rackspace Technology manages its routine affairs as well as how well it operates its assets and liabilities. Return On Equity is likely to gain to 5.69 in 2024, whereas Return On Tangible Assets are likely to drop (0.54) in 2024. At this time, Rackspace Technology's Total Current Liabilities is comparatively stable compared to the past year. Liabilities And Stockholders Equity is likely to gain to about 4.6 B in 2024, whereas Non Current Liabilities Total is likely to drop slightly above 3.4 B in 2024.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | (0.72) | (0.68) | |
| Tangible Book Value Per Share | (12.20) | (12.81) | |
| Enterprise Value Over EBITDA | (24.11) | (22.91) | |
| Price Book Value Ratio | (2.79) | (2.65) | |
| Enterprise Value Multiple | (24.11) | (22.91) | |
| Price Fair Value | (2.79) | (2.65) | |
| Enterprise Value | 6.8 B | 4.8 B |
The management strategies employed by Rackspace Technology's are designed to enhance shareholder value and ensure long-term growth. We assess the effectiveness of these strategies in our stock analysis.
Beta 1.978 |
Basic technical analysis of Rackspace Stock
As of the 30th of November, Rackspace Technology holds the Risk Adjusted Performance of 0.0729, semi deviation of 4.0, and Coefficient Of Variation of 1180.87. Compared to fundamental indicators, the technical analysis model allows you to check existing technical drivers of Rackspace Technology, as well as the relationship between them.Rackspace Technology's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Rackspace Technology insiders, such as employees or executives, is commonly permitted as long as it does not rely on Rackspace Technology's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Rackspace Technology insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Rackspace Technology's Outstanding Corporate Bonds
Rackspace Technology issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Rackspace Technology uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Rackspace bonds can be classified according to their maturity, which is the date when Rackspace Technology has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| MPLX LP 52 Corp BondUS55336VAL45 | View | |
| Morgan Stanley 3591 Corp BondUS61744YAK47 | View |
Understand Rackspace Technology's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Rackspace Technology's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0729 | |||
| Market Risk Adjusted Performance | 0.1828 | |||
| Mean Deviation | 3.08 | |||
| Semi Deviation | 4.0 | |||
| Downside Deviation | 4.49 | |||
| Coefficient Of Variation | 1180.87 | |||
| Standard Deviation | 4.14 | |||
| Variance | 17.11 | |||
| Information Ratio | 0.0514 | |||
| Jensen Alpha | 0.089 | |||
| Total Risk Alpha | (0.35) | |||
| Sortino Ratio | 0.0473 | |||
| Treynor Ratio | 0.1728 | |||
| Maximum Drawdown | 21.75 | |||
| Value At Risk | (7.03) | |||
| Potential Upside | 7.58 | |||
| Downside Variance | 20.18 | |||
| Semi Variance | 16.03 | |||
| Expected Short fall | (3.43) | |||
| Skewness | (0.33) | |||
| Kurtosis | 0.9195 |
| Risk Adjusted Performance | 0.0729 | |||
| Market Risk Adjusted Performance | 0.1828 | |||
| Mean Deviation | 3.08 | |||
| Semi Deviation | 4.0 | |||
| Downside Deviation | 4.49 | |||
| Coefficient Of Variation | 1180.87 | |||
| Standard Deviation | 4.14 | |||
| Variance | 17.11 | |||
| Information Ratio | 0.0514 | |||
| Jensen Alpha | 0.089 | |||
| Total Risk Alpha | (0.35) | |||
| Sortino Ratio | 0.0473 | |||
| Treynor Ratio | 0.1728 | |||
| Maximum Drawdown | 21.75 | |||
| Value At Risk | (7.03) | |||
| Potential Upside | 7.58 | |||
| Downside Variance | 20.18 | |||
| Semi Variance | 16.03 | |||
| Expected Short fall | (3.43) | |||
| Skewness | (0.33) | |||
| Kurtosis | 0.9195 |
Consider Rackspace Technology's intraday indicators
Rackspace Technology intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Rackspace Technology stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Rackspace Technology Corporate Filings
13A | 14th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
8K | 12th of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
F4 | 2nd of October 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
10Q | 9th of August 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
Rackspace Stock media impact
Far too much social signal, news, headlines, and media speculation about Rackspace Technology that are available to investors today. That information is available publicly through Rackspace media outlets and privately through word of mouth or via Rackspace internal channels. However, regardless of the origin, that massive amount of Rackspace data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Rackspace Technology news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Rackspace Technology relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Rackspace Technology's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Rackspace Technology alpha.
Rackspace Technology Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Rackspace Technology can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Rackspace Technology Corporate Management
| Srini Koushik | Ex CTO | Profile | |
| Kathleen Schneider | Chief Officer | Profile | |
| Greg Hrncir | Chief Officer | Profile | |
| Michael Bross | Senior Officer | Profile | |
| Sagar Hebbar | Head Relations | Profile | |
| JD Esq | Chief EVP | Profile | |
| Sandeep Bhargava | VP Japan | Profile |
Additional Tools for Rackspace Stock Analysis
When running Rackspace Technology's price analysis, check to measure Rackspace Technology's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Rackspace Technology is operating at the current time. Most of Rackspace Technology's value examination focuses on studying past and present price action to predict the probability of Rackspace Technology's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Rackspace Technology's price. Additionally, you may evaluate how the addition of Rackspace Technology to your portfolios can decrease your overall portfolio volatility.