Rackspace Technology (NASDAQ:RXT) EVP Dharmendra Kumar Sinha Sells 107,002 Shares

Key Points

• Rackspace EVP Dharmendra Kumar Sinha sold 107,002 shares at an average price of $2.95, generating $315,655.90. The sale was conducted under a Rule 10b5-1 plan to cover tax obligations from vested equity awards, reducing his holdings by 3.17%.
• RXT shares rose 0.3% to $3.01, while the company’s latest quarterly results beat expectations with adjusted EPS of -$0.08 versus -$0.09 expected and revenue of $670.1 million versus a $646 million consensus.
• Analyst sentiment remains weak, with a consensus “Reduce” rating and a $4.00 price target. Rackspace also faces securities-fraud litigation allegations tied to disclosures about its AI initiatives, restructuring and an alleged revenue shortfall.

Rackspace Technology, Inc. (NASDAQ:RXT - Get Free Report) EVP Dharmendra Kumar Sinha sold 107,002 shares of the company's stock in a transaction dated Wednesday, September 2nd. The shares were sold at an average price of $2.95, for a total transaction of $315,655.90. Following the transaction, the executive vice president owned 3,263,429 shares in the company, valued at $9,627,115.55. This represents a 3.17% decrease in their position. The sale 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 Up 0.3%

RXT stock traded up $0.01 during trading on Wednesday, reaching $3.01. The stock had a trading volume of 6,300,549 shares, compared to its average volume of 7,284,960. The company has a market capitalization of $767.16 million, a price-to-earnings ratio of -4.63 and a beta of 3.05. Rackspace Technology, Inc. has a one year low of $0.39 and a one year high of $8.60. The company's 50 day moving average is $4.50 and its two-hundred day moving average is $3.54.

Rackspace Technology (NASDAQ:RXT - Get Free Report) last announced its quarterly earnings data on Monday, August 10th. The company reported ($0.08) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.09) by $0.01. The business had revenue of $670.10 million during the quarter, compared to the consensus estimate of $646.00 million. As a group, research analysts predict that Rackspace Technology, Inc. will post -0.28 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

A number of research analysts have commented on the stock. Royal Bank Of Canada increased their price target on shares of Rackspace Technology from $2.50 to $4.00 and gave the company a "sector perform" rating in a research report on Wednesday, June 17th. Wall Street Zen cut shares of Rackspace Technology from a "hold" rating to a "sell" rating in a research note on Saturday, August 15th. Finally, Weiss Ratings reaffirmed 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 assigned a Sell rating to the stock. According to MarketBeat, Rackspace Technology presently has an average rating of "Reduce" and a consensus price target of $4.00.

Institutional Trading of Rackspace Technology

Several large investors have recently added to or reduced their stakes in RXT. BlackRock Inc. bought a new position in Rackspace Technology during the 2nd quarter valued at approximately $51,411,000. Vanguard Group Inc. increased its holdings in shares of Rackspace Technology by 6.1% during the third quarter. Vanguard Group Inc. now owns 6,288,882 shares of the company's stock valued at $8,867,000 after acquiring an additional 359,087 shares in the last quarter. Janus Henderson Group PLC raised its position in shares of Rackspace Technology by 179.7% in the 1st 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 last quarter. Geode Capital Management LLC raised its position in shares of Rackspace Technology by 4.2% in the 4th quarter. Geode Capital Management LLC now owns 2,408,000 shares of the company's stock worth $2,338,000 after purchasing an additional 96,760 shares during the last quarter. Finally, Renaissance Technologies LLC boosted its stake 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 in the last quarter. Institutional investors own 82.48% of the company's stock.

Key Headlines 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

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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