Mitsubishi UFJ Asset Management Co. Ltd. acquired a new stake in Rackspace Technology, Inc. (NASDAQ:RXT – Free Report) in the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund acquired 595,309 shares of the company’s stock, valued at approximately $3,887,000.
Several other institutional investors have also recently added to or reduced their stakes in the business. Strategic Investment Solutions Inc. IL purchased a new position in Rackspace Technology during the second quarter worth about $67,000. Wealthcare Advisory Partners LLC acquired a new stake in Rackspace Technology in the 2nd quarter worth about $72,000. Engineers Gate Manager LP grew its holdings in Rackspace Technology by 47.1% in the 2nd quarter. Engineers Gate Manager LP now owns 34,777 shares of the company’s stock valued at $45,000 after buying an additional 11,141 shares during the period. Alliancebernstein L.P. grew its holdings in Rackspace Technology by 4.0% in the 3rd quarter. Alliancebernstein L.P. now owns 290,750 shares of the company’s stock valued at $410,000 after buying an additional 11,300 shares during the period. Finally, Focus Partners Advisor Solutions LLC acquired a new position in shares of Rackspace Technology during the 2nd quarter valued at about $81,000. 82.48% of the stock is currently owned by institutional investors and hedge funds.
Insider Activity
In related news, CFO Mark A. Marino sold 48,099 shares of the stock in a transaction that occurred on Thursday, June 4th. The shares were sold at an average price of $5.56, for a total transaction of $267,430.44. Following the completion of the sale, the chief financial officer owned 3,370,431 shares of the company’s stock, valued at approximately $18,739,596.36. This represents a 1.41% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Anthony Scott sold 48,780 shares of the stock in a transaction that occurred on Friday, August 14th. The stock was sold at an average price of $4.25, for a total transaction of $207,315.00. Following the sale, the director directly owned 180,215 shares of the company’s stock, valued at approximately $765,913.75. This trade represents a 21.30% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 2.30% of the company’s stock.
Key Headlines Impacting Rackspace Technology
- Positive Sentiment: Rackspace’s latest reported quarter showed revenue of $670.1 million, above the $646 million analyst consensus, while adjusted EPS of negative $0.08 was slightly better than expected. This operational performance may provide some support for the shares, although it predates the current legal announcements.
- Neutral Sentiment: The announcements from Kaplan Fox, Robbins LLP, Bronstein Gewirtz & Grossman, Pomerantz, Rosen and other firms largely repeat the same lawsuit details rather than reporting separate new claims. The proposed class covers investors who acquired RXT securities from May 7 through July 8, 2026, and the lead-plaintiff deadline is September 28, 2026. Kaplan Fox class action announcement
- Negative Sentiment: The lawsuit alleges Rackspace and certain senior executives violated federal securities laws, including Sections 10(b) and 20(a) and Rule 10b-5, causing investor harm after a significant decline in the stock. Although the allegations have not been proven, the litigation could create legal expenses, potential damages, management distraction and additional uncertainty around Rackspace’s disclosures and business outlook. BFA Law Rackspace investor alert
Analyst Ratings Changes
RXT has been the topic of several recent analyst reports. Wall Street Zen lowered shares of Rackspace Technology from a “hold” rating to a “sell” rating in a report on Saturday, August 15th. Royal Bank Of Canada boosted their target price on shares of Rackspace Technology from $2.50 to $4.00 and gave the company a “sector perform” rating in a report on Wednesday, June 17th. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Rackspace Technology in a research report on Tuesday, June 2nd. One research analyst has rated the stock with a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Rackspace Technology currently has an average rating of “Reduce” and a consensus price target of $4.00.
Get Our Latest Analysis on RXT
Rackspace Technology Trading Up 1.5%
Shares of RXT opened at $3.30 on Friday. The firm has a market capitalization of $841.07 million, a P/E ratio of -5.08 and a beta of 3.05. The stock’s fifty day simple moving average is $5.09 and its 200 day simple moving average is $3.36. Rackspace Technology, Inc. has a twelve month low of $0.39 and a twelve month high of $8.60.
Rackspace Technology (NASDAQ:RXT – Get Free Report) last posted its quarterly earnings results on Tuesday, August 11th. The company reported ($0.08) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.09) by $0.01. The firm had revenue of $670.10 million for the quarter, compared to analysts’ expectations of $646.00 million. Sell-side analysts predict that Rackspace Technology, Inc. will post -0.28 earnings per share for the current year.
Rackspace Technology Company Profile
Rackspace Technology (NASDAQ: RXT) is a leading provider of managed multi-cloud solutions and services, specializing in the deployment, management and optimization of public and private cloud environments. The company helps organizations design and operate applications across platforms such as Amazon Web Services (AWS), Microsoft Azure, Google Cloud and its own private cloud infrastructure. Rackspace’s core offerings include cloud migration, application modernization, data protection, security services and 24x7x365 operational support.
Beyond cloud hosting, Rackspace offers a range of professional services designed to accelerate digital transformation initiatives.
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