Insider Selling: Rackspace Technology (NASDAQ:RXT) CEO Sells 1,780,619 Shares of Stock

Key Points

• CEO Amar Maletira sold 1,780,619 shares of Rackspace Technology (NASDAQ:RXT) at an average price of $1.35, amounting to a total of $2,403,835.65, resulting in a 27.87% decrease in his ownership.
• Rackspace Technology's stock gained 6.7% to reach $1.44 during recent trading, while the company reported a quarterly earnings miss of ($0.06) EPS.
• Recent analyst activity indicates a downgrade to a "sell" rating, with several firms adjusting their price targets for RXT, now averaging $1.58.

Rackspace Technology, Inc. (NASDAQ:RXT - Get Free Report) CEO Amar Maletira sold 1,780,619 shares of Rackspace Technology stock in a transaction on Monday, September 15th. The shares were sold at an average price of $1.35, for a total transaction of $2,403,835.65. Following the completion of the sale, the chief executive officer owned 4,608,619 shares in the company, valued at approximately $6,221,635.65. This trade represents a 27.87% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website.

Rackspace Technology Stock Down 2.7%

Shares of RXT stock traded down $0.04 during mid-day trading on Friday, reaching $1.44. 1,651,760 shares of the company's stock traded hands, compared to its average volume of 1,096,924. Rackspace Technology, Inc. has a 12 month low of $1.00 and a 12 month high of $3.41. The company has a market cap of $344.68 million, a P/E ratio of -0.89 and a beta of 2.06. The company's 50-day moving average price is $1.32 and its 200-day moving average price is $1.38.

Rackspace Technology (NASDAQ:RXT - Get Free Report) last announced its quarterly earnings results on Thursday, August 7th. The company reported ($0.06) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.05) by ($0.01). The company had revenue of $666.30 million for the quarter, compared to the consensus estimate of $658.86 million. During the same quarter last year, the firm posted ($0.08) EPS. Rackspace Technology's quarterly revenue was down 2.7% compared to the same quarter last year. Rackspace Technology has set its Q3 2025 guidance at -0.060--0.040 EPS.

Wall Street Analysts Forecast Growth

Several equities research analysts recently issued reports on the stock. Raymond James Financial reissued a "market perform" rating on shares of Rackspace Technology in a report on Monday, June 2nd. BMO Capital Markets cut their price target on Rackspace Technology from $1.75 to $1.40 and set a "market perform" rating on the stock in a research note on Tuesday, August 12th. Finally, Wall Street Zen raised Rackspace Technology from a "sell" rating to a "hold" rating in a research report on Saturday. Four research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of "Reduce" and a consensus target price of $1.58.

Hedge Funds Weigh In On Rackspace Technology

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Russell Investments Group Ltd. lifted its stake in shares of Rackspace Technology by 4,053.5% in the 1st quarter. Russell Investments Group Ltd. now owns 846,112 shares of the company's stock valued at $1,430,000 after purchasing an additional 825,741 shares during the last quarter. Two Sigma Investments LP boosted its position in shares of Rackspace Technology by 1,692.6% during the 4th quarter. Two Sigma Investments LP now owns 406,621 shares of the company's stock worth $899,000 after acquiring an additional 383,938 shares in the last quarter. Jacobs Levy Equity Management Inc. boosted its position in shares of Rackspace Technology by 42.4% during the 1st quarter. Jacobs Levy Equity Management Inc. now owns 1,255,023 shares of the company's stock worth $2,121,000 after acquiring an additional 373,875 shares in the last quarter. Geode Capital Management LLC boosted its position in shares of Rackspace Technology by 17.9% during the 2nd quarter. Geode Capital Management LLC now owns 2,064,549 shares of the company's stock worth $2,643,000 after acquiring an additional 313,636 shares in the last quarter. Finally, JPMorgan Chase & Co. boosted its position in shares of Rackspace Technology by 25.5% in the 2nd quarter. JPMorgan Chase & Co. now owns 1,437,879 shares of the company's stock valued at $1,840,000 after purchasing an additional 292,249 shares during the period. Institutional investors and hedge funds own 82.48% of the company's stock.

About Rackspace Technology

Rackspace Technology, Inc operates as a multi cloud technology services company in the Americas, Europe, the Middle East, Africa, and The Asia-Pacific region. It operates through three segments: Multicloud Services, Apps & Cross Platform, and OpenStack Public Cloud. The company provides public and private cloud managed services, which allow customers to determine, manage, and optimize the right infrastructure, platforms, and services; professional services related to designing and building multi cloud solutions and cloud-native applications; and managed hosting and colocation services.