Stock Traders Buy High Volume of Call Options on Rackspace Technology (NASDAQ:RXT)

Key Points

• Unusually high call-option activity: Traders bought 12,728 Rackspace call options, about 52% above the typical volume, suggesting increased speculative interest.
• Quarterly results beat estimates: Rackspace reported a loss of $0.06 per share and revenue of $609.1 million, beating analyst expectations, and raised its full-year outlook.
• Shares and analyst outlook: RXT rose to $3.19 in Wednesday trading. Analysts’ average rating was “Reduce,” with a $4.00 average price target.

Rackspace Technology, Inc. (NASDAQ:RXT - Get Free Report) was the target of some unusual options trading activity on Wednesday. Stock investors purchased 12,728 call options on the company. This represents an increase of approximately 52% compared to the typical volume of 8,352 call options.

Rackspace Technology Price Performance

RXT stock traded up $0.51 during midday trading on Wednesday, reaching $3.19. The company had a trading volume of 6,219,970 shares, compared to its average volume of 17,160,145. The firm has a 50-day moving average price of $3.30 and a 200-day moving average price of $3.26. Rackspace Technology has a 1 year low of $0.39 and a 1 year high of $8.60. The company has a market capitalization of $811.76 million, a P/E ratio of -5.47 and a beta of 3.29.

Rackspace Technology (NASDAQ:RXT - Get Free Report) last issued its earnings results on Monday, November 9th. The company reported ($0.06) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.08) by $0.02. The firm had revenue of $609.10 million during the quarter, compared to analysts' expectations of $573.96 million. On average, equities analysts predict that Rackspace Technology will post -0.28 EPS for the current year.

Insider Buying and Selling at Rackspace Technology

In related news, EVP Dharmendra Sinha sold 107,002 shares of Rackspace Technology stock in a transaction that occurred on Wednesday, September 2nd. The stock was sold at an average price of $2.95, for a total value of $315,655.90. Following the transaction, the executive vice president directly owned 3,263,429 shares of the company's stock, valued at $9,627,115.55. The trade was a 3.17% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, 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. Also, CFO Mark A. Marino sold 51,373 shares of the company's stock in a transaction that occurred on Wednesday, September 2nd. The shares were sold at an average price of $2.95, for a total value of $151,550.35. Following the completion of the sale, the chief financial officer owned 2,865,853 shares in the company, valued at $8,454,266.35. The trade was a 1.76% 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. Insiders have sold a total of 714,141 shares of company stock worth $2,299,799 in the last three months. 2.30% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the business. Legal & General Group Plc bought a new stake in shares of Rackspace Technology during the 2nd quarter valued at $58,000. Quantbot Technologies LP purchased a new position in shares of Rackspace Technology during the second quarter valued at about $63,000. Allworth Financial LP purchased a new position in shares of Rackspace Technology during the second quarter valued at about $66,000. Strategic Investment Solutions Inc. IL purchased a new stake in shares of Rackspace Technology in the second quarter worth about $67,000. Finally, State of Wyoming purchased a new stake in shares of Rackspace Technology in the third quarter worth about $39,000. Hedge funds and other institutional investors own 82.48% of the company's stock.

Analyst Ratings Changes

RXT has been the topic of several recent analyst reports. Wall Street Zen lowered shares of Rackspace Technology from a "hold" rating to a "sell" rating in a report on Saturday, August 15th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Rackspace Technology in a report on Friday, August 28th. One analyst has rated the stock with a Hold rating and one has assigned 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.

Rackspace Technology News Summary

Here's some of the latest news about RXT:

• Positive Sentiment: Q3 results beat expectations and guidance was raised. Rackspace reported a loss of $0.06 per share, versus the $0.08 loss analysts expected, and revenue of $609.1 million, above the $574.0 million consensus. Its updated FY2026 outlook calls for a loss of $0.30–$0.25 per share and revenue of $2.5–$2.6 billion. Rackspace Technology Reports Third Quarter 2026 Results
• Positive Sentiment: Call-option activity increased. Traders bought 12,728 RXT call options, 52% above the reported average daily volume. This may signal greater speculative bullish interest, but options activity alone does not establish a lasting trend.
• Neutral Sentiment: A short-interest report stated that short interest was zero shares, despite describing it as a large increase. The conflicting description makes the figure difficult to interpret. Rackspace Technology Raises Earnings Guidance

Rackspace Technology Company Profile

Rackspace Technology, Inc. NASDAQ: RXT provides multicloud technology services to businesses and public-sector organizations. Its offerings include cloud strategy and migration, infrastructure management, application modernization, data services, and cybersecurity. The company helps customers operate workloads across public cloud platforms, including Amazon Web Services, Microsoft Azure, and Google Cloud, as well as private and hybrid cloud environments. Its services include consulting and ongoing support tailored to customers' technology needs.

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