Rackspace Technology (NASDAQ:RXT) Stock Price Up 16.7% - Time to Buy?

Key Points

• Shares were up 16.7% Monday, trading as high as $2.12 and last at $2.065 on 5,000,675 shares—about 75% below the average session volume of ~19.7 million.
• Analysts carry a consensus rating of Reduce with an average price target of $1.93; four analysts rate the stock Hold and one rates Sell, while RBC recently raised its target to $2.50.
• Rackspace beat quarterly estimates (EPS -$0.01 vs. -$0.04; revenue $682.8M vs. $672.6M) but issued FY2026 guidance of -$0.20 to -$0.15 EPS, and insiders sold roughly 502,440 shares last quarter (insiders own 2.9%).

Rackspace Technology, Inc. (NASDAQ:RXT - Get Free Report) shares traded up 16.7% during trading on Monday . The company traded as high as $2.12 and last traded at $2.0650. 5,000,675 shares were traded during trading, a decline of 75% from the average session volume of 19,699,395 shares. The stock had previously closed at $1.77.

Analysts Set New Price Targets

A number of equities research analysts recently issued reports on RXT shares. Weiss Ratings reissued a "sell (d-)" rating on shares of Rackspace Technology in a research note on Thursday, January 22nd. Royal Bank Of Canada increased their target price on Rackspace Technology from $1.75 to $2.50 and gave the stock a "sector perform" rating in a research note on Friday, February 27th. Four investment analysts have rated the stock with a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Reduce" and an average price target of $1.93.

Rackspace Technology Trading Up 13.6%

The company has a market capitalization of $496.29 million, a PE ratio of -2.12 and a beta of 2.23. The firm's 50-day simple moving average is $1.54 and its 200-day simple moving average is $1.22.

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, topping analysts' consensus estimates of ($0.04) by $0.03. The company had revenue of $682.80 million for the quarter, compared to analysts' expectations of $672.56 million. Rackspace Technology has set its FY 2026 guidance at -0.200--0.15 EPS. As a group, analysts anticipate that Rackspace Technology, Inc. will post -0.18 EPS for the current year.

Insider Buying and Selling at Rackspace Technology

In related news, CFO Mark A. Marino sold 14,058 shares of Rackspace Technology stock in a transaction dated Wednesday, March 18th. The stock was sold at an average price of $1.81, for a total value of $25,444.98. Following the completion of the sale, the chief financial officer directly owned 2,158,874 shares in the company, valued at $3,907,561.94. The trade was a 0.65% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, EVP Dharmendra Kumar Sinha sold 188,123 shares of the company's stock in a transaction dated Wednesday, March 18th. The stock was 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 of the company's stock, valued at approximately $4,119,663.17. This trade represents a 7.63% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 502,440 shares of company stock valued at $867,173 over the last quarter. Company insiders own 2.90% of the company's stock.

Hedge Funds Weigh In On Rackspace Technology

A number of hedge funds and other institutional investors have recently modified their holdings of the business. AustralianSuper Pty Ltd bought a new position in Rackspace Technology in the third quarter worth approximately $2,276,000. Two Sigma Investments LP boosted its position in Rackspace Technology by 368.4% during the 3rd quarter. Two Sigma Investments LP now owns 673,689 shares of the company's stock valued at $950,000 after acquiring an additional 529,862 shares in the last quarter. Janus Henderson Group PLC increased its holdings in shares of Rackspace Technology by 70.7% in the 4th quarter. Janus Henderson Group PLC now owns 1,050,353 shares of the company's stock valued at $1,020,000 after acquiring an additional 435,113 shares during the period. Vanguard Group Inc. increased its holdings in shares of Rackspace Technology by 6.1% in the 3rd quarter. Vanguard Group Inc. now owns 6,288,882 shares of the company's stock valued at $8,867,000 after acquiring an additional 359,087 shares during the period. Finally, Geode Capital Management LLC raised its position in shares of Rackspace Technology by 17.9% in the 2nd quarter. Geode Capital Management LLC now owns 2,064,549 shares of the company's stock worth $2,643,000 after acquiring an additional 313,636 shares in the last quarter. 82.48% of the stock is currently owned by 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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