Rackspace Technology, Inc. (NASDAQ:RXT) Given Consensus Recommendation of "Reduce" by Analysts

Key Points

• Rackspace Technology, Inc. has received an average analyst recommendation of "Reduce," with one analyst issuing a sell rating and four recommending a hold.
• The company's Q2 2025 earnings report showed a loss of ($0.06) per share, missing expectations by ($0.01), although it generated revenue of $666.30 million, exceeding analyst predictions.
• Rackspace's stock was up 7.7%, trading at $1.40, with a market capitalization of $335.10 million and significant price target reductions from various analysts.

Shares of Rackspace Technology, Inc. (NASDAQ:RXT - Get Free Report) have received an average recommendation of "Reduce" from the five brokerages that are covering the stock, Marketbeat reports. One research analyst has rated the stock with a sell rating and four have assigned a hold rating to the company. The average 1-year price objective among analysts that have covered the stock in the last year is $1.5750.

A number of brokerages have recently issued reports on RXT. BMO Capital Markets dropped their price target on shares of Rackspace Technology from $1.75 to $1.40 and set a "market perform" rating on the stock in a report on Tuesday, August 12th. Raymond James Financial restated a "market perform" rating on shares of Rackspace Technology in a research report on Monday, June 2nd. Finally, Wall Street Zen downgraded shares of Rackspace Technology from a "hold" rating to a "sell" rating in a research report on Saturday, August 9th.

Insider Activity

In related news, Director Anthony Scott sold 40,000 shares of Rackspace Technology stock in a transaction on Monday, September 8th. The stock was sold at an average price of $1.43, for a total value of $57,200.00. Following the completion of the sale, the director owned 191,045 shares of the company's stock, valued at $273,194.35. The trade was a 17.31% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. 2.90% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of RXT. Engineers Gate Manager LP lifted its stake in shares of Rackspace Technology by 47.1% in the 2nd quarter. Engineers Gate Manager LP now owns 34,777 shares of the company's stock worth $45,000 after purchasing an additional 11,141 shares during the period. BNP Paribas Financial Markets increased its holdings in Rackspace Technology by 25.4% during the second quarter. BNP Paribas Financial Markets now owns 119,493 shares of the company's stock valued at $153,000 after buying an additional 24,173 shares during the last quarter. Brevan Howard Capital Management LP raised its position in Rackspace Technology by 62.9% in the second quarter. Brevan Howard Capital Management LP now owns 85,472 shares of the company's stock worth $109,000 after acquiring an additional 32,996 shares during the period. Ameriprise Financial Inc. raised its position in Rackspace Technology by 9.4% in the second quarter. Ameriprise Financial Inc. now owns 387,182 shares of the company's stock worth $496,000 after acquiring an additional 33,356 shares during the period. Finally, Raymond James Financial Inc. boosted its stake in shares of Rackspace Technology by 15.1% during the 2nd quarter. Raymond James Financial Inc. now owns 443,090 shares of the company's stock worth $567,000 after acquiring an additional 58,180 shares during the last quarter. 82.48% of the stock is owned by hedge funds and other institutional investors.

Rackspace Technology Stock Performance

Shares of RXT stock traded up $0.08 during mid-day trading on Friday, hitting $1.49. The company's stock had a trading volume of 1,095,072 shares, compared to its average volume of 828,938. Rackspace Technology has a 52-week low of $1.00 and a 52-week high of $3.41. The business has a 50-day moving average price of $1.32 and a 200 day moving average price of $1.44. The stock has a market cap of $356.65 million, a price-to-earnings ratio of -0.92 and a beta of 2.06.

Rackspace Technology (NASDAQ:RXT - Get Free Report) last released its quarterly earnings data on Thursday, August 7th. The company reported ($0.06) EPS for the quarter, missing the consensus estimate of ($0.05) by ($0.01). The company had revenue of $666.30 million during the quarter, compared to the consensus estimate of $658.86 million. During the same quarter in the previous year, the business earned ($0.08) earnings per share. Rackspace Technology's revenue was down 2.7% compared to the same quarter last year. Rackspace Technology has set its Q3 2025 guidance at -0.060--0.040 EPS.

Rackspace Technology Company Profile

Rackspace Technology, Inc operates as a multi cloud technology services company in the Americas, Europe, the Middle East, Africa, and The Asia-Pacific region. It operates through three segments: Multicloud Services, Apps & Cross Platform, and OpenStack Public Cloud. The company provides public and private cloud managed services, which allow customers to determine, manage, and optimize the right infrastructure, platforms, and services; professional services related to designing and building multi cloud solutions and cloud-native applications; and managed hosting and colocation services.