Janus Henderson Group PLC Increases Stock Position in Rackspace Technology, Inc. $RXT

Key Points

• Janus Henderson increased its Rackspace Technology stake by 179.7% in the first quarter, acquiring 1.89 million additional shares for a total position of 2.94 million shares, or 1.18% of the company. Hedge funds and other institutions collectively own 82.48% of RXT.
• Rackspace appointed Pranav Nambiar to lead its AI Infrastructure business, supporting its push into sovereign and regulated-enterprise AI solutions. However, the company faces legal and investor-confidence risks tied to securities lawsuits alleging inadequate disclosure of an estimated $150 million revenue shortfall and reduced 2026 guidance.
• RXT opened at $4.90, while analysts maintain a cautious outlook: the stock carries an average “Reduce” rating and a $2.70 price target. Its latest quarterly results beat revenue expectations but missed consensus EPS estimates.

Janus Henderson Group PLC lifted its stake in Rackspace Technology, Inc. (NASDAQ:RXT - Free Report) by 179.7% in the first quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 2,937,670 shares of the company's stock after acquiring an additional 1,887,317 shares during the quarter. Janus Henderson Group PLC owned 1.18% of Rackspace Technology worth $2,878,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds have also recently made changes to their positions in the stock. Arete Wealth Advisors LLC bought a new position in Rackspace Technology during the first quarter valued at approximately $219,000. Renaissance Technologies LLC grew its position in Rackspace Technology by 14.0% in the 1st quarter. Renaissance Technologies LLC now owns 2,041,600 shares of the company's stock worth $2,000,000 after purchasing an additional 250,700 shares during the period. State of Wyoming purchased a new stake in Rackspace Technology during the 1st quarter valued at $35,000. Bank of New York Mellon Corp raised its stake in Rackspace Technology by 35.4% during the 1st quarter. Bank of New York Mellon Corp now owns 239,954 shares of the company's stock valued at $235,000 after buying an additional 62,768 shares during the last quarter. Finally, Kathmere Capital Management LLC bought a new position in shares of Rackspace Technology during the 1st quarter valued at $116,000. 82.48% of the stock is owned by hedge funds and other institutional investors.

Key Rackspace Technology News

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

• Positive Sentiment: Rackspace appointed Pranav Nambiar as Senior Vice President and General Manager of AI Infrastructure. He will oversee infrastructure, partnerships, operating strategy and go-to-market efforts for sovereign and regulated-enterprise AI solutions, potentially strengthening Rackspace’s growth positioning in a high-demand market. Pranav Nambiar Joins Rackspace Technology to Scale Sovereign AI Infrastructure
• Neutral Sentiment: One valuation analysis argues that RXT may still be undervalued despite its fraud-lawsuit headlines, while another questions whether the company needs to revisit its valuation after cutting 2026 guidance. These are analyst opinions rather than new company fundamentals, but they highlight the debate over whether the stock’s long-term AI potential outweighs near-term uncertainty. Rackspace Stock Still Looks Undervalued Should Rackspace Revisit Its Valuation
• Negative Sentiment: Numerous law firms—including Kaplan Fox, Rosen, Bronstein Gewirtz & Grossman, Faruqi & Faruqi and others—are promoting or pursuing a securities class action against Rackspace and certain executives. The case covers investors who purchased RXT securities from May 7 through July 8, 2026, with a lead-plaintiff deadline of September 28, 2026. The repeated notices increase visibility around the legal overhang, although the allegations have not been proven. Rosen Securities Class Action Notice
• Negative Sentiment: The lawsuit-related allegations reportedly focus on whether Rackspace adequately disclosed a roughly $150 million revenue shortfall after a June restructuring filing, alongside the company’s 2026 guidance reduction. Potential litigation costs, reputational damage and further disclosures could pressure valuation and investor confidence. SueWallSt Rackspace Disclosure Allegations

Rackspace Technology Stock Performance

NASDAQ:RXT opened at $4.90 on Friday. The stock has a 50-day simple moving average of $5.34 and a two-hundred day simple moving average of $3.14. Rackspace Technology, Inc. has a 52-week low of $0.39 and a 52-week high of $8.60. The firm has a market capitalization of $1.24 billion, a PE ratio of -8.03 and a beta of 3.05.

Rackspace Technology (NASDAQ:RXT - Get Free Report) last posted its quarterly earnings data on Thursday, May 7th. The company reported ($0.06) EPS for the quarter, missing the consensus estimate of ($0.03) by ($0.03). The firm had revenue of $678.10 million during the quarter, compared to analysts' expectations of $660.83 million.

Wall Street Analysts Forecast Growth

Several analysts recently commented on the company. 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. Weiss Ratings restated a "sell (d-)" rating on shares of Rackspace Technology in a research note on Tuesday, June 2nd. Two research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Reduce" and an average price target of $2.70.

Insider Activity

In related news, CFO Mark A. Marino sold 48,099 shares of the stock in a transaction that occurred on Thursday, June 4th. The shares were sold at an average price of $5.56, for a total value of $267,430.44. Following the completion of the sale, the chief financial officer directly owned 3,370,431 shares of the company's stock, valued at approximately $18,739,596.36. This represents a 1.41% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed 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. Company insiders own 2.30% of the company's stock.

Rackspace Technology Profile

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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