Rackspace Technology, Inc. (NASDAQ:RXT) Short Interest Update

Key Points

• Short interest fell sharply: Short interest dropped 14.1% to 19,041,360 shares as of March 31, representing about 7.9% of the float and a days-to-cover ratio of 2.2 based on average volume.
• Significant insider selling: Insiders sold a total of 502,440 shares worth $867,173 in the past three months, including EVP Dharmendra K. Sinha and CFO Mark A. Marino, and insiders now own 2.90% of the stock.
• Analyst and operational backdrop: The consensus rating is "Reduce" with a $1.70 price target (RBC raised its target to $2.50 while Weiss maintains a sell), and the company recently beat Q results (EPS -$0.01 vs. -$0.04 est., revenue $682.8M vs. $672.6M) while guiding FY26 EPS to -0.20 to -0.15.

Rackspace Technology, Inc. (NASDAQ:RXT - Get Free Report) saw a large decline in short interest in the month of March. As of March 31st, there was short interest totaling 19,041,360 shares, a decline of 14.1% from the March 15th total of 22,170,445 shares. Based on an average trading volume of 8,488,200 shares, the days-to-cover ratio is presently 2.2 days. Approximately 7.9% of the shares of the company are sold short.

Insider Buying and Selling

In related news, EVP Dharmendra Kumar Sinha sold 188,123 shares of the business's stock in a transaction that occurred on Wednesday, March 18th. The stock was sold at an average price of $1.81, for a total transaction of $340,502.63. Following the transaction, the executive vice president directly owned 2,276,057 shares of the company's stock, valued at approximately $4,119,663.17. The trade was a 7.63% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Mark A. Marino sold 234,683 shares of the company's stock in a transaction on Monday, February 23rd. The shares were sold at an average price of $1.63, for a total transaction of $382,533.29. Following the completion of the transaction, the chief financial officer owned 2,193,115 shares in the company, valued at approximately $3,574,777.45. This represents a 9.67% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 502,440 shares of company stock worth $867,173 over the last three months. 2.90% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of RXT. R Squared Ltd lifted its holdings in shares of Rackspace Technology by 74.3% in the third quarter. R Squared Ltd now owns 25,127 shares of the company's stock worth $35,000 after acquiring an additional 10,707 shares during the last quarter. Engineers Gate Manager LP raised its stake in shares of Rackspace Technology by 47.1% during the second quarter. Engineers Gate Manager LP now owns 34,777 shares of the company's stock valued at $45,000 after acquiring an additional 11,141 shares during the last quarter. Alliancebernstein L.P. lifted its holdings in shares of Rackspace Technology by 4.0% during the third quarter. Alliancebernstein L.P. now owns 290,750 shares of the company's stock worth $410,000 after purchasing an additional 11,300 shares during the period. Creative Planning increased its holdings in Rackspace Technology by 114.2% in the second 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 raised 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 worth $74,000 after purchasing an additional 22,243 shares during the last quarter. Institutional investors own 82.48% of the company's stock.

Analyst Ratings Changes

Several research firms recently issued reports on RXT. Royal Bank Of Canada boosted their price target on Rackspace Technology from $1.75 to $2.50 and gave the company a "sector perform" rating in a research note on Friday, February 27th. Weiss Ratings reissued a "sell (d-)" rating on shares of Rackspace Technology in a report on Thursday, January 22nd. Four research analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Reduce" and a consensus price target of $1.70.

Rackspace Technology Stock Up 13.9%

Shares of RXT traded up $0.19 during trading hours on Friday, hitting $1.52. 7,426,637 shares of the company were exchanged, compared to its average volume of 21,933,961. Rackspace Technology has a fifty-two week low of $0.39 and a fifty-two week high of $2.74. The company has a market cap of $374.07 million, a price-to-earnings ratio of -1.59 and a beta of 1.98. The firm's fifty day moving average is $1.35 and its 200 day moving average is $1.21.

Rackspace Technology (NASDAQ:RXT - Get Free Report) last issued its earnings results on Thursday, February 26th. The company reported ($0.01) EPS for the quarter, beating the consensus estimate of ($0.04) by $0.03. The firm had revenue of $682.80 million during the quarter, compared to analyst estimates of $672.56 million. Rackspace Technology has set its FY 2026 guidance at -0.200--0.15 EPS.

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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