GSA Capital Partners LLP Takes Position in Rackspace Technology, Inc. $RXT

Key Points

• GSA Capital Partners LLP acquired 432,204 Rackspace Technology shares worth approximately $2.82 million in the second quarter, representing about 0.17% of the company. Institutional investors collectively own 82.48% of RXT.
• Rackspace exceeded quarterly expectations, reporting $670.1 million in revenue versus the $646 million consensus and an adjusted loss of $0.08 per share. The company also appointed Chetan Gupta as chief AI officer to lead its enterprise and sovereign AI strategy.
• Despite the earnings beat, analysts maintain a cautious outlook, with a consensus “Reduce” rating and a $4.00 average price target. Rackspace also faces securities litigation allegations tied to public-cloud resale and enterprise AI disclosures, while shares recently opened at $4.21.

GSA Capital Partners LLP purchased a new stake in Rackspace Technology, Inc. (NASDAQ:RXT - Free Report) during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund purchased 432,204 shares of the company's stock, valued at approximately $2,822,000. GSA Capital Partners LLP owned approximately 0.17% of Rackspace Technology at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also recently bought and sold shares of the business. Abel Hall LLC purchased a new position in shares of Rackspace Technology in the 1st quarter valued at about $30,000. Creative Planning grew its position in Rackspace Technology by 114.2% during 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 period. Jump Financial LLC acquired a new position in Rackspace Technology during the fourth quarter worth about $34,000. SG Americas Securities LLC purchased a new position in Rackspace Technology in the first quarter valued at about $34,000. Finally, State of Wyoming purchased a new position in Rackspace Technology in the first quarter valued at about $35,000. Institutional investors and hedge funds own 82.48% of the company's stock.

Key Stories Impacting Rackspace Technology

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

• Positive Sentiment: Rackspace reported quarterly revenue of $670.1 million, above the $646 million analyst consensus, while its adjusted loss per share was $0.08 versus estimates of a $0.09 loss. The results initially supported a sharp move higher in the shares. Rackspace Technology Shares Gap Up Following Earnings Beat
• Positive Sentiment: The company appointed Chetan Gupta, Ph.D., as chief AI officer. He will lead Rackspace’s AI strategy, research, governance and customer adoption, with a focus on enterprise, regulated-industry and sovereign AI deployments. The move may strengthen the company’s positioning in a strategically important growth market, although no immediate financial impact was disclosed. Rackspace Technology Appoints Chief AI Officer
• Neutral Sentiment: Multiple law firms are soliciting investors who purchased Rackspace securities from May 7 through July 8, 2026, to seek lead-plaintiff status by September 28, 2026. These releases largely repeat the same lawsuit announcement rather than representing separate new cases. Kaplan Fox Rackspace Investor Notice
• Negative Sentiment: The securities class action alleges that Rackspace and certain executives violated federal securities laws through material misstatements or omissions related to public-cloud resale representations and the company’s enterprise AI efforts. The notices reference a subsequent $125 million reduction in guidance after previously reaffirmed full-year targets. The allegations have not been proven, but the litigation creates legal, reputational and potential financial risks for RXT. SueWallSt Rackspace Class Action Summary

Insider Buying and Selling at Rackspace Technology

In other news, CFO Mark A. Marino sold 48,099 shares of the business's stock in a transaction on Thursday, June 4th. The stock was sold at an average price of $5.56, for a total value of $267,430.44. Following the completion of the transaction, the chief financial officer directly owned 3,370,431 shares of the company's stock, valued at $18,739,596.36. The trade was a 1.41% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available 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. 2.30% of the stock is currently owned by company insiders.

Wall Street Analysts Forecast Growth

A number of research firms have recently issued reports on RXT. Weiss Ratings reiterated a "sell (d-)" rating on shares of Rackspace Technology in a research report on Tuesday, June 2nd. Wall Street Zen downgraded Rackspace Technology from a "hold" rating to a "sell" rating in a research note on Saturday. Finally, Royal Bank Of Canada lifted their price objective on Rackspace Technology from $2.50 to $4.00 and gave the stock a "sector perform" rating in a report on Wednesday, June 17th. One investment analyst has rated the stock with a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Reduce" and an average target price of $4.00.

Rackspace Technology Trading Down 2.1%

Shares of RXT opened at $4.21 on Friday. The company has a 50-day moving average of $5.25 and a two-hundred day moving average of $3.27. The stock has a market cap of $1.07 billion, a P/E ratio of -6.48 and a beta of 3.05. Rackspace Technology, Inc. has a 12-month low of $0.39 and a 12-month high of $8.60.

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 for the quarter, topping analysts' consensus estimates of ($0.09) by $0.01. The business had revenue of $670.10 million for the quarter, compared to analysts' expectations of $646.00 million. As a group, 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.

Want to see what other hedge funds are holding RXT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Rackspace Technology, Inc. (NASDAQ:RXT - Free Report).

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.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source