Rackspace Technology (NASDAQ:RXT) CEO Sells 8,258 Shares

Key Points

• CEO Gajakarnan Vibushanan Kandiah sold 8,258 RXT shares at an average price of $2.95, generating $24,361.10. The sale was conducted under a Rule 10b5-1 plan to cover tax withholding, reducing his ownership by 0.20%.
• Rackspace shares traded near $3.01, well below their 50-day moving average of $4.50, while the company reported quarterly revenue of $670.1 million and an adjusted EPS loss of $0.08, slightly exceeding analyst expectations.
• Analyst sentiment remains cautious, with the stock carrying an average “Reduce” rating and a $4.00 price target. Rackspace is also facing securities-fraud litigation allegations related to disclosures about its AI initiatives and a reported revenue shortfall.

Rackspace Technology, Inc. (NASDAQ:RXT - Get Free Report) CEO Gajakarnan Vibushanan Kandiah sold 8,258 shares of the firm's stock in a transaction on Wednesday, September 2nd. The stock was sold at an average price of $2.95, for a total transaction of $24,361.10. Following the completion of the sale, the chief executive officer owned 4,183,683 shares of the company's stock, valued at $12,341,864.85. The trade was a 0.20% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible 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.

Rackspace Technology Stock Performance

Shares of NASDAQ RXT traded up $0.01 during trading on Wednesday, hitting $3.01. 6,300,549 shares of the company traded hands, compared to its average volume of 7,284,960. The firm has a market capitalization of $767.16 million, a price-to-earnings ratio of -4.63 and a beta of 3.05. The business's fifty day moving average is $4.50 and its 200 day moving average is $3.54. Rackspace Technology, Inc. has a fifty-two week low of $0.39 and a fifty-two week high of $8.60.

Rackspace Technology (NASDAQ:RXT - Get Free Report) last issued its earnings results on Monday, August 10th. The company reported ($0.08) EPS for the quarter, beating analysts' consensus estimates of ($0.09) by $0.01. The firm had revenue of $670.10 million during the quarter, compared to the consensus estimate of $646.00 million. On average, analysts predict that Rackspace Technology, Inc. will post -0.28 EPS for the current year.

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on RXT. Wall Street Zen cut Rackspace Technology from a "hold" rating to a "sell" rating in a report on Saturday, August 15th. Royal Bank Of Canada raised their price objective on shares of Rackspace Technology from $2.50 to $4.00 and gave the company a "sector perform" rating in a research note on Wednesday, June 17th. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of Rackspace Technology in a report on Friday, August 28th. One investment analyst has rated the stock with a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Reduce" and an average target price of $4.00.

Key Stories Impacting Rackspace Technology

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

• Neutral Sentiment: Investors who purchased Rackspace securities between May 7 and July 8, 2026, and suffered losses, may seek appointment as lead plaintiff by September 28. These notices are procedural and do not establish that Rackspace committed wrongdoing. Kaplan Fox deadline announcement
• Negative Sentiment: The lawsuit alleges that Rackspace and certain executives made misleading statements or failed to disclose material information about the company’s artificial-intelligence efforts and their expected impact on financial performance. Bleichmar Fonti & Auld lawsuit announcement
• Negative Sentiment: One litigation notice claims Rackspace’s June restructuring filing disclosed severance costs and anticipated savings but allegedly omitted a roughly $150 million revenue shortfall that surfaced about three weeks later. The allegations followed a reported 33.6% stock decline, increasing legal, reputational and potential financial risks for RXT. SueWallSt Rackspace deadline alert

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in RXT. Janus Henderson Group PLC increased its holdings in shares of Rackspace Technology by 179.7% in the first quarter. Janus Henderson Group PLC now owns 2,937,670 shares of the company's stock worth $2,878,000 after purchasing an additional 1,887,317 shares during the period. Renaissance Technologies LLC grew its stake in shares of Rackspace Technology by 14.0% in the first 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 last quarter. GSA Capital Partners LLP bought a new position in Rackspace Technology in the 2nd quarter worth $2,822,000. BlackRock Inc. purchased a new position in shares of Rackspace Technology during the second quarter valued at approximately $51,411,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. purchased a new position in shares of Rackspace Technology in the second quarter worth $3,887,000. 82.48% of the stock is currently owned by hedge funds and other institutional investors.

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.

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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