Rackspace Technology, Inc. (NASDAQ:RXT – Get Free Report) gapped up prior to trading on Thursday . The stock had previously closed at $3.24, but opened at $3.52. Rackspace Technology shares last traded at $3.1960, with a volume of 8,907,848 shares changing hands.
Key Stories Impacting Rackspace Technology
Here are the key news stories impacting Rackspace Technology this week:
- Positive Sentiment: Rackspace joined the NVIDIA Cloud Partner Program and announced NVIDIA Blackwell-powered infrastructure for regulated enterprises and government customers. The offering combines NVIDIA accelerated computing, Palantir software and Rackspace-managed private cloud services, strengthening the company’s positioning in the growing sovereign and enterprise AI market. The announcement prompted a positive initial market reaction. Rackspace NVIDIA Cloud Partner Program announcement
- Neutral Sentiment: Rackspace CEO Gajakarnan Vibushanan Kandiah sold 498,728 shares for approximately $1.6 million under a pre-arranged Rule 10b5-1 plan. The filing stated that the sale was made to cover tax-withholding obligations tied to vested equity awards, making it less indicative of a discretionary bearish outlook, although the transaction reduced his direct stake by nearly 12%. Rackspace SEC Form 4 filing
- Negative Sentiment: Several law firms publicized a securities class action against Rackspace and urged affected investors to seek lead-plaintiff status by September 28, 2026. The proposed class covers purchases made from May 7 through July 8, 2026. The repeated announcements are increasing attention on potential legal costs and liabilities. Rackspace securities class action notice
- Negative Sentiment: The lawsuits allege that Rackspace misled investors about its AI strategy, including workforce reductions, exits from certain hosting businesses and the eventual $150 million reduction to its full-year revenue outlook. These allegations followed a reported sharp stock decline; they remain unproven claims, but could weigh on sentiment and create additional uncertainty around the company’s transition toward AI-focused services. Rackspace shareholder lawsuit alert
Analyst Upgrades and Downgrades
Several analysts have recently issued reports on RXT shares. Royal Bank Of Canada increased their price target on shares of Rackspace Technology from $2.50 to $4.00 and gave the stock a “sector perform” rating in a research report on Wednesday, June 17th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Rackspace Technology in a research note on Friday, August 28th. Finally, Wall Street Zen lowered shares of Rackspace Technology from a “hold” rating to a “sell” rating in a report on Saturday, August 15th. One investment analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Reduce” and an average price target of $4.00.
Rackspace Technology Price Performance
The company has a market cap of $801.57 million, a price-to-earnings ratio of -4.84 and a beta of 3.05. The business’s 50-day simple moving average is $4.18 and its 200-day simple moving average is $3.63.
Rackspace Technology (NASDAQ:RXT – Get Free Report) last released its quarterly earnings results on Monday, August 10th. The company reported ($0.08) EPS for the quarter, beating the consensus estimate of ($0.09) by $0.01. The business had revenue of $670.10 million during the quarter, compared to analyst estimates of $646.00 million. As a group, sell-side analysts forecast that Rackspace Technology, Inc. will post -0.28 EPS for the current year.
Insiders Place Their Bets
In other Rackspace Technology news, CFO Mark A. Marino sold 51,373 shares of Rackspace Technology stock in a transaction on Wednesday, September 2nd. The shares were sold at an average price of $2.95, for a total value of $151,550.35. Following the transaction, the chief financial officer owned 2,865,853 shares in the company, valued at $8,454,266.35. This trade represents a 1.76% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 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 business’s stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $4.25, for a total value of $207,315.00. Following the sale, the director owned 180,215 shares of the company’s stock, valued at $765,913.75. The trade was a 21.30% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 714,141 shares of company stock valued at $2,299,799. 2.30% of the stock is owned by company insiders.
Hedge Funds Weigh In On Rackspace Technology
Hedge funds and other institutional investors have recently bought and sold shares of the stock. Abel Hall LLC acquired a new position in Rackspace Technology in the 1st quarter worth $30,000. Creative Planning increased its stake in shares of Rackspace Technology by 114.2% in the second quarter. Creative Planning now owns 25,715 shares of the company’s stock worth $33,000 after buying an additional 13,708 shares during the last quarter. SG Americas Securities LLC bought a new stake in shares of Rackspace Technology in the first quarter worth $34,000. Jump Financial LLC acquired a new stake in Rackspace Technology in the fourth quarter valued at $34,000. Finally, State of Wyoming acquired a new stake in Rackspace Technology in the first quarter valued at $35,000. 82.48% of the stock is owned by institutional investors and hedge funds.
About Rackspace Technology
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.
Featured Stories
- Five stocks we like better than Rackspace Technology
- Insider Sales Eclipse $450M Across 3 AI Winners, With NVIDIA Leading the Pack
- GameStop’s Comeback Case Is Getting Interesting, But eBay Still Looks Stronger
- Why Braze’s Guidance Miss May Be a Gift for Investors
- This Corner of the Market Is Outperforming the Benchmark—And It’s Not AI
Receive News & Ratings for Rackspace Technology Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Rackspace Technology and related companies with MarketBeat.com's FREE daily email newsletter.
