Why Is Rackspace Technology (RXT) Down Today?

RXT investors were likely spooked this afternoon by Barrons's report: "Rackspace Technology has disclosed the service outage that has been affecting thousands of the company's email customers since late last week was caused by a ransomware attack." For more coverage, read the full article here. On the back of this news, Rackspace Technology sank -2.7% to a price of $3.99. Are the markets overreacting?

Rackspace Technology, Inc. operates as a multi cloud technology services company worldwide. The company belongs to the Technology sector, which has an average price to earnings (P/E) ratio of 26.5 and an average price to book (P/B) ratio of 5.57. In contrast, Rackspace Technology has a trailing 12 month P/E ratio of -4.3 and a P/B ratio of 1.0.

Rackspace Technology has moved -70.1% over the last year compared to -14.7% for the S&P 500 — a difference of -55.4%. Rackspace Technology has a 52 week high of $14.38 and a 52 week low of $3.7. At today's price of $3.99 per share, Rackspace Technology is -28.36% away from its target price of $5.57, and on average, analysts give the stock a rating of hold. 24.2% of the company's shares are linked to short positions, and 104.3% of the shares are owned by institutional investors.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.