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

Key Points

• Analyst consensus: "Reduce" — Six analysts cover Rackspace (NASDAQ:RXT), with two sell and four hold ratings and an average 12‑month price target of $1.51.
• Shares are trading very low and volatile — RXT opened at $0.56 (down ~8.6%), with a 12‑month range of $0.55–$3.03 and a market cap of about $136.2 million.
• Mixed fundamentals and weak near‑term outlook — the company reported ($0.05) EPS and $671.2M revenue (slightly above estimates but down 0.7% YoY) and guided Q4 2025 EPS to roughly -$0.05 to -$0.03.

Shares of Rackspace Technology, Inc. (NASDAQ:RXT - Get Free Report) have earned an average rating of "Reduce" from the six research firms that are currently covering the company, MarketBeat reports. Two equities research analysts have rated the stock with a sell rating and four have assigned a hold rating to the company. The average 12-month price target among analysts that have updated their coverage on the stock in the last year is $1.5125.

Several research analysts recently weighed in on RXT shares. Royal Bank Of Canada cut their target price on Rackspace Technology from $2.00 to $1.75 and set a "sector perform" rating on the stock in a research report on Monday, November 10th. Weiss Ratings restated a "sell (d-)" rating on shares of Rackspace Technology in a report on Thursday, January 22nd.

Rackspace Technology Trading Down 8.6%

NASDAQ RXT opened at $0.56 on Tuesday. The business's 50-day moving average price is $0.97 and its 200 day moving average price is $1.22. Rackspace Technology has a twelve month low of $0.55 and a twelve month high of $3.03. The company has a market capitalization of $136.19 million, a PE ratio of -0.52 and a beta of 2.13.

Rackspace Technology (NASDAQ:RXT - Get Free Report) last posted its quarterly earnings results on Thursday, November 6th. The company reported ($0.05) EPS for the quarter, meeting the consensus estimate of ($0.05). The business had revenue of $671.20 million during the quarter, compared to analysts' expectations of $666.83 million. The firm's quarterly revenue was down .7% compared to the same quarter last year. During the same quarter last year, the firm earned ($0.04) EPS. Rackspace Technology has set its Q4 2025 guidance at -0.050--0.030 EPS.

Insider Buying and Selling

In other Rackspace Technology news, EVP Dharmendra Kumar Sinha sold 91,151 shares of Rackspace Technology stock in a transaction that occurred on Friday, November 28th. The shares were sold at an average price of $1.04, for a total transaction of $94,797.04. Following the transaction, the executive vice president directly owned 2,568,895 shares of the company's stock, valued at $2,671,650.80. The trade was a 3.43% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Insiders own 2.90% of the company's stock.

Hedge Funds Weigh In On Rackspace Technology

A number of hedge funds have recently made changes to their positions in RXT. AustralianSuper Pty Ltd purchased a new stake in Rackspace Technology during the 3rd quarter worth $2,276,000. Two Sigma Investments LP lifted its stake in shares of Rackspace Technology by 368.4% during the third quarter. Two Sigma Investments LP now owns 673,689 shares of the company's stock worth $950,000 after purchasing an additional 529,862 shares in the last quarter. Vanguard Group Inc. boosted its position in shares of Rackspace Technology by 6.1% in the third quarter. Vanguard Group Inc. now owns 6,288,882 shares of the company's stock worth $8,867,000 after buying an additional 359,087 shares during the period. Geode Capital Management LLC grew its stake in shares of Rackspace Technology by 17.9% in the second quarter. Geode Capital Management LLC now owns 2,064,549 shares of the company's stock valued at $2,643,000 after buying an additional 313,636 shares in the last quarter. Finally, JPMorgan Chase & Co. grew its stake in shares of Rackspace Technology by 25.5% in the second quarter. JPMorgan Chase & Co. now owns 1,437,879 shares of the company's stock valued at $1,840,000 after buying an additional 292,249 shares in the last quarter. Hedge funds and other institutional investors own 82.48% of the company's stock.

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.

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