Rackspace Technology (NASDAQ:RXT) Stock Price Down 9.2% - Should You Sell?

Key Points

• Shares fell 9.2% to about $2.23 on Wednesday, with mid-day volume ~4.4M shares (down ~77% versus the 19.5M average), after a prior close of $2.45.
• Analysts hold a consensus "Reduce" rating with a $1.93 target (four Holds, one Sell); RBC raised its target to $2.50 while Weiss Ratings reaffirmed a "sell (d-)" recommendation.
• Rackspace slightly beat quarterly estimates (EPS -$0.01 vs. -$0.04; revenue $682.8M) but set FY2026 guidance of roughly -$0.20 to -$0.15 EPS, and insiders sold about 502,440 shares in the last quarter.

Rackspace Technology, Inc. (NASDAQ:RXT - Get Free Report)'s share price was down 9.2% on Wednesday . The stock traded as low as $2.17 and last traded at $2.2250. Approximately 4,403,095 shares changed hands during mid-day trading, a decline of 77% from the average daily volume of 19,531,855 shares. The stock had previously closed at $2.45.

Analysts Set New Price Targets

Several research firms have recently commented on RXT. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Rackspace Technology in a report on Thursday, January 22nd. Royal Bank Of Canada lifted their price objective on shares of Rackspace Technology from $1.75 to $2.50 and gave the company a "sector perform" rating in a research report on Friday, February 27th. Four analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Rackspace Technology has a consensus rating of "Reduce" and a consensus target price of $1.93.

Rackspace Technology Stock Down 7.3%

The firm's 50-day simple moving average is $1.55 and its 200 day simple moving average is $1.22. The stock has a market capitalization of $565.73 million, a P/E ratio of -2.39 and a beta of 2.23.

Rackspace Technology (NASDAQ:RXT - Get Free Report) last issued its earnings results 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 for 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. As a group, equities analysts anticipate that Rackspace Technology, Inc. will post -0.18 EPS for the current fiscal year.

Insider Activity at Rackspace Technology

In related news, CFO Mark A. Marino sold 234,683 shares of the firm's stock in a transaction that occurred 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 transaction, the chief financial officer owned 2,193,115 shares of the company's stock, valued at approximately $3,574,777.45. This trade represents a 9.67% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Dharmendra Kumar Sinha sold 188,123 shares of the firm'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 transaction, the executive vice president owned 2,276,057 shares in the company, valued at $4,119,663.17. This represents a 7.63% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 502,440 shares of company stock worth $867,173. Company insiders own 2.90% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. AustralianSuper Pty Ltd bought a new position in shares of Rackspace Technology during the 3rd quarter worth about $2,276,000. Brevan Howard Capital Management LP raised its position in shares of Rackspace Technology by 62.9% during the second quarter. Brevan Howard Capital Management LP now owns 85,472 shares of the company's stock valued at $109,000 after buying an additional 32,996 shares during the last quarter. XTX Topco Ltd lifted its stake in shares of Rackspace Technology by 62.8% in the second quarter. XTX Topco Ltd now owns 57,682 shares of the company's stock valued at $74,000 after buying an additional 22,243 shares during the period. Engineers Gate Manager LP grew its position in Rackspace Technology by 47.1% during the second quarter. Engineers Gate Manager LP now owns 34,777 shares of the company's stock worth $45,000 after buying an additional 11,141 shares in the last quarter. Finally, Jump Financial LLC acquired a new stake in Rackspace Technology during the fourth quarter worth about $34,000. 82.48% of the stock is currently owned by institutional investors and hedge funds.

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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