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

Key Points

• Analysts have given Rackspace a consensus rating of Reduce (2 sell, 4 hold) with an average 12‑month price target of $1.70.
• Rackspace's latest quarter beat estimates with EPS of ($0.01) and revenue of $682.8M, but the company set FY2026 guidance at -0.20 to -0.15 EPS.
• Insiders sold 502,440 shares (about $867K) over the last quarter, while hedge funds and other institutions own roughly 82.5% of the stock.

Shares of Rackspace Technology, Inc. (NASDAQ:RXT - Get Free Report) have been given a consensus rating of "Reduce" by the six ratings firms that are presently covering the stock, Marketbeat reports. Two research analysts have rated the stock with a sell rating and four have issued a hold rating on the company. The average 12 month price target among analysts that have covered the stock in the last year is $1.70.

Several brokerages recently commented on RXT. Royal Bank Of Canada lifted their target price on shares of Rackspace Technology from $1.75 to $2.50 and gave the stock a "sector perform" rating in a research note on Friday, February 27th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Rackspace Technology in a report on Thursday, January 22nd.

Rackspace Technology Stock Performance

Shares of RXT opened at $1.47 on Friday. The firm has a market cap of $362.96 million, a price-to-earnings ratio of -1.55 and a beta of 1.98. Rackspace Technology has a fifty-two week low of $0.39 and a fifty-two week high of $2.74. The firm has a 50 day moving average price of $1.37 and a 200-day moving average price of $1.21.

Rackspace Technology (NASDAQ:RXT - Get Free Report) last announced its quarterly earnings data on Thursday, February 26th. The company reported ($0.01) earnings per share for the quarter, topping analysts' consensus estimates of ($0.04) by $0.03. The business had revenue of $682.80 million during the quarter, compared to the consensus estimate of $672.56 million. Rackspace Technology has set its FY 2026 guidance at -0.200--0.15 EPS.

Insiders Place Their Bets

In related news, EVP Dharmendra Kumar Sinha sold 188,123 shares of the company's stock in a transaction on Wednesday, March 18th. The shares were sold at an average price of $1.81, for a total transaction of $340,502.63. Following the completion of the sale, the executive vice president directly owned 2,276,057 shares in the company, valued at $4,119,663.17. This represents a 7.63% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, CFO Mark A. Marino sold 14,058 shares of the company's stock in a transaction on Wednesday, March 18th. The shares were sold at an average price of $1.81, for a total transaction of $25,444.98. Following the sale, the chief financial officer owned 2,158,874 shares of the company's stock, valued at $3,907,561.94. This represents a 0.65% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 502,440 shares of company stock valued at $867,173 over the last quarter. 2.90% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the stock. R Squared Ltd increased its position in Rackspace Technology by 74.3% during the 3rd quarter. R Squared Ltd now owns 25,127 shares of the company's stock valued at $35,000 after purchasing an additional 10,707 shares during the period. Engineers Gate Manager LP increased its position in Rackspace Technology by 47.1% during the 2nd quarter. Engineers Gate Manager LP now owns 34,777 shares of the company's stock valued at $45,000 after purchasing an additional 11,141 shares during the period. Alliancebernstein L.P. increased its position in Rackspace Technology by 4.0% during the 3rd quarter. Alliancebernstein L.P. now owns 290,750 shares of the company's stock valued at $410,000 after purchasing an additional 11,300 shares during the period. Creative Planning increased its position in Rackspace Technology by 114.2% during the 2nd quarter. Creative Planning now owns 25,715 shares of the company's stock valued at $33,000 after purchasing an additional 13,708 shares during the period. Finally, XTX Topco Ltd increased its position in Rackspace Technology by 62.8% during the 2nd quarter. XTX Topco Ltd now owns 57,682 shares of the company's stock valued at $74,000 after purchasing an additional 22,243 shares during the period. 82.48% of the stock is owned by hedge funds and other institutional investors.

Rackspace Technology Company 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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