The stock of Rackspace Technology, Inc. (NASDAQ:RXT) is now priced at $21.35 and the shares are 2.02 points up or 10.45% higher compared to its previous closing price of $19.33. The stock had 12.544 million contracts set over the past session. RXT shares’ daily volume is compared to its average trading volume at 5.359 million shares. However, it has a float of 36.47 million and although its performance was 16.29% over the week, it’s one to watch. It means the stock’s downside potential is -100% with the RXT share price recently placing at $20.35 to $22.06. However, some brokerage firms have priced the stock below the average, including one that has called $23.
The shorts are climbing into the Rackspace Technology, Inc. stock, with the latest data on short interest released on August 14, 2020, showing that short interest numbers in the RXT shares have risen. Short interest in the stock represents just 7.98% of its float, but the volume has raised by 2911283. The volume of shorted shares rised to 2.911 million from shares over the last two weeks. The average intraday trading volume has been 4.546 million shares, which means that days to cover moved to roughly 1.
Looking at current readings, Rackspace Technology, Inc.’s two-week RSI is 0. This suggests that the stock is overbought at the moment and that RXT shares’ price movement remains not stable. The stochastic readings are equally revealing at 80.82% meaning the RXT share price is currently in oversold territory.
The technical chart shows that the RXT stock will likely settle at between $22.16 and $22.96 per share. However, if the stock dips below $20.45, then its market would become much weaker. Any downside could see the stock price sliding to levels as low as $19.54.
Currently, the stock is trading in the green of MACD, with a reading of 0.91. Investors always pay attention to any move above or below the zero-line, mainly because the indicator points to the position of the stock’s short-term average relative to its long-term measure. A MACD -a reading above the zero line means that the short-term is above the long-term average. This scenario implies that there is an upward momentum. The opposite is true when the MACD falls below the zero-line.
Analysts at Maxim Group assigned RXT a rating of Outperform in their intiating review released on August 31. JP Morgan analysts see the stock as a Overweight with a target price of $28 in a flash note released to investors on August 31 initiating covering the stock. Goldman analysts see the stock as Buy when the analysts initiated the share price coverage on August 31, placing it at $44.
The average rating for the RXT equity is — and is currently gathering a bearish momentum. Of 4 analysts tracking Rackspace Technology, Inc. polled by Reuters, 0 rated RXT as a hold. The remaining 4 analysts were split evenly. However, the split wasn’t equal as a majority (4) rated it as a buy or strong buy. 0 analyst advised investors against buying the stock or to sell if they own any of the stock.
The stocks P/S ratio currently stands below the group’s average of 40.3. Rackspace Technology, Inc. has its P/E ratio at 5.3, which means that the stock is currently trading at a discount relative to the 13.6 industry average.