Rackspace Technology (NASDAQ:RXT) Shares Down 5.1% – Time to Sell?

Posted by Francis Steltz on Oct 19th, 2026

Rackspace Technology, Inc. (NASDAQ:RXT – Get Free Report)’s share price was down 5.1% during mid-day trading on Monday. The company traded as low as $2.71 and last traded at $2.6850. Approximately 2,709,365 shares changed hands during mid-day trading, a decline of 85% from the average session volume of 18,161,881 shares. The stock had previously closed at $2.83.

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on the stock. Wall Street Zen cut shares of Rackspace Technology from a “hold” rating to a “sell” rating in a research report on Saturday, August 15th. Weiss Ratings reissued a “sell (d-)” rating on shares of Rackspace Technology in a research note on Friday, August 28th. One equities research analyst has rated the stock with a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Reduce” and a consensus price target of $4.00.

View Our Latest Research Report on RXT

Rackspace Technology Stock Performance

The company has a market cap of $684.33 million, a P/E ratio of -4.13 and a beta of 3.10. The business has a 50 day moving average price of $3.63 and a two-hundred day moving average price of $3.99.

Rackspace Technology (NASDAQ:RXT – Get Free Report) last posted its quarterly earnings results on Monday, August 10th. The company reported ($0.08) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.09) by $0.01. The company had revenue of $670.10 million for the quarter, compared to the consensus estimate of $646.00 million. As a group, research analysts expect that Rackspace Technology, Inc. will post -0.28 EPS for the current year.

Insider Buying and Selling

In other news, 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 completion of the sale, the director owned 180,215 shares of the company’s stock, valued at approximately $765,913.75. This represents a 21.30% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Gajakarnan Kandiah sold 498,728 shares of the firm’s stock in a transaction that occurred on Friday, September 4th. The stock was sold at an average price of $3.21, for a total transaction of $1,600,916.88. Following the completion of the transaction, the chief executive officer owned 3,684,955 shares in the company, valued at $11,828,705.55. This represents a 11.92% decrease in their position. The disclosure for this sale is available in the SEC filing. 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. In the last three months, insiders sold 714,141 shares of company stock worth $2,299,799. 2.30% of the stock is owned by company insiders.

Institutional Trading of Rackspace Technology

A number of institutional investors have recently modified their holdings of the company. ABS Direct Equity Fund LLC bought a new stake in shares of Rackspace Technology in the second quarter worth about $1,306,000. Engineers Gate Manager LP purchased a new position in Rackspace Technology during the 2nd quarter valued at about $167,000. NewEdge Advisors LLC increased its holdings in Rackspace Technology by 9,566.7% during the 2nd quarter. NewEdge Advisors LLC now owns 29,000 shares of the company’s stock valued at $189,000 after purchasing an additional 28,700 shares during the period. Squarepoint Ops LLC bought a new position in Rackspace Technology during the 2nd quarter valued at approximately $1,839,000. Finally, Corient Private Wealth LP bought a new position in Rackspace Technology during the 2nd quarter valued at approximately $297,000. 82.48% of the stock is currently owned by hedge funds and other institutional investors.

About Rackspace Technology

(Get Free Report)

Rackspace Technology, Inc is a technology services company that helps organizations design, build, operate and modernize cloud-based IT environments. The company supports public, private and hybrid cloud infrastructures, working with major cloud platforms such as Amazon Web Services, Microsoft Azure and Google Cloud.

Its services include managed cloud operations, cloud migration and optimization, application modernization, data and artificial intelligence solutions, cybersecurity, professional services and dedicated hosting.