595,309 Shares in Rackspace Technology, Inc. $RXT Acquired by Mitsubishi UFJ Asset Management Co. Ltd.

Key Points

• Mitsubishi UFJ Asset Management acquired 595,309 Rackspace Technology shares worth approximately $3.89 million, giving it a 0.23% stake. Institutional investors and hedge funds collectively own 82.48% of the company.
• Rackspace reported quarterly revenue of $670.1 million, exceeding the $646 million consensus estimate, while adjusted EPS of negative $0.08 was slightly better than expected.
• Analyst sentiment remains cautious, with a consensus “Reduce” rating and an average price target of $4.00; the company also faces securities-fraud litigation allegations that could add legal and operational uncertainty.

Mitsubishi UFJ Asset Management Co. Ltd. acquired a new stake in Rackspace Technology, Inc. (NASDAQ:RXT - Free Report) in the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm acquired 595,309 shares of the company's stock, valued at approximately $3,887,000. Mitsubishi UFJ Asset Management Co. Ltd. owned approximately 0.23% of Rackspace Technology at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. Abel Hall LLC purchased a new stake in Rackspace Technology during the first quarter worth $30,000. Creative Planning grew its holdings in Rackspace Technology by 114.2% in the second quarter. Creative Planning now owns 25,715 shares of the company's stock valued at $33,000 after purchasing an additional 13,708 shares during the last quarter. SG Americas Securities LLC purchased a new position in shares of Rackspace Technology in the first quarter valued at $34,000. Jump Financial LLC purchased a new position in shares of Rackspace Technology in the fourth quarter valued at $34,000. Finally, State of Wyoming acquired a new position in shares of Rackspace Technology during the 1st quarter worth $35,000. 82.48% of the stock is owned by institutional investors and hedge funds.

Insider Transactions at Rackspace Technology

In related news, Director Anthony Scott sold 48,780 shares of the business's stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $4.25, for a total value of $207,315.00. Following the completion of the transaction, the director owned 180,215 shares of the company's stock, valued at approximately $765,913.75. The trade was a 21.30% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Mark A. Marino sold 48,099 shares of the company's stock in a transaction dated 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 transaction, the chief financial officer owned 3,370,431 shares in the company, valued at approximately $18,739,596.36. This trade represents a 1.41% decrease in their ownership of the stock. 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. Company insiders own 2.30% of the company's stock.

Trending Headlines about Rackspace Technology

Here are the key news stories impacting Rackspace Technology this week:

• 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

Several research firms recently commented on RXT. Royal Bank Of Canada boosted their price objective 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 restated a "sell (d-)" rating on shares of Rackspace Technology in a report on Tuesday, June 2nd. Finally, Wall Street Zen cut shares of Rackspace Technology from a "hold" rating to a "sell" rating in a research report on Saturday, August 15th. One 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 currently has a consensus rating of "Reduce" and an average price target of $4.00.

Rackspace Technology Stock Performance

Rackspace Technology stock opened at $3.30 on Friday. Rackspace Technology, Inc. has a fifty-two week low of $0.39 and a fifty-two week high of $8.60. The company has a market capitalization of $841.07 million, a price-to-earnings ratio of -5.08 and a beta of 3.05. The stock has a fifty day moving average of $5.09 and a two-hundred day moving average of $3.36.

Rackspace Technology (NASDAQ:RXT - Get Free Report) last issued its quarterly earnings data on Tuesday, August 11th. The company reported ($0.08) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.09) by $0.01. The company had revenue of $670.10 million during the quarter, compared to analysts' expectations of $646.00 million. On average, analysts forecast that Rackspace Technology, Inc. will post -0.28 EPS for the current fiscal year.

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.

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This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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