Rackspace Technology (RXT) Slumps Over Continued Security Lapses

Investor pessimism about RXT was exacerbated this afternoon by Barrons's report: "It's been almost two full weeks since Rackspace Technology was hit with a ransomware attack -causing email disruptions for thousands of the internet infrastructure company's customers - and the situation remains unresolved." For more coverage, read the full article here. On the back of this news, Rackspace Technology sank -3.7% to a price of $3.08. 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 -3.2 and a P/B ratio of 0.5.

At today's price of $3.08 per share, Rackspace Technology is -54.57% away from its target price of $6.78, and on average, analysts give the stock a rating of hold. 27.2% of the company's shares are linked to short positions, and 105.7% 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.