Rackspace Technology (NASDAQ:RXT) Trading Up 6.7% - What's Next?

Key Points

• Rackspace Technology shares rose 6.7% in Tuesday trading, briefly hitting $4.89 before settling around $4.82. Trading volume was well below average, with about 3.1 million shares changing hands versus a 23.8 million daily average.
• Recent analyst sentiment remains mixed but cautious: Royal Bank of Canada raised its price target to $4.00 and kept a sector perform rating, while the broader consensus still sits at Reduce with a $2.70 target.
• The company’s latest earnings showed a loss of $0.06 per share, worse than estimates, though revenue of $678.1 million topped expectations. Rackspace also gave FY 2026 EPS guidance of -0.20 to -0.15.

Shares of Rackspace Technology, Inc. (NASDAQ:RXT - Get Free Report) shot up 6.7% during mid-day trading on Tuesday . The company traded as high as $4.89 and last traded at $4.8230. Approximately 3,139,532 shares were traded during trading, a decline of 87% from the average daily volume of 23,796,438 shares. The stock had previously closed at $4.52.

Analyst Ratings Changes

RXT has been the topic of a number of recent analyst reports. Royal Bank Of Canada lifted their price objective on Rackspace Technology from $2.50 to $4.00 and gave the stock a "sector perform" rating in a research note on Wednesday, June 17th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Rackspace Technology in a report on Tuesday, June 2nd. Two analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Reduce" and a consensus target price of $2.70.

Rackspace Technology Stock Up 7.6%

The stock's 50-day moving average price is $5.48 and its 200 day moving average price is $2.71. The firm has a market cap of $1.24 billion, a price-to-earnings ratio of -7.98 and a beta of 2.99.

Rackspace Technology (NASDAQ:RXT - Get Free Report) last released its earnings results on Thursday, May 7th. The company reported ($0.06) earnings per share for the quarter, missing analysts' consensus estimates of ($0.03) by ($0.03). The company had revenue of $678.10 million during the quarter, compared to analyst estimates of $660.83 million. Rackspace Technology has set its FY 2026 guidance at -0.200--0.150 EPS.

Insider Activity at Rackspace Technology

In related news, CFO Mark A. Marino sold 48,099 shares of the company's stock in a transaction on Thursday, June 4th. The stock was sold at an average price of $5.56, for a total value of $267,430.44. Following the completion of the transaction, the chief financial officer directly owned 3,370,431 shares in the company, valued at approximately $18,739,596.36. This represents a 1.41% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders own 2.30% of the company's stock.

Institutional Investors Weigh In On Rackspace Technology

Institutional investors and hedge funds have recently bought and sold shares of the business. Janus Henderson Group PLC lifted its stake in Rackspace Technology by 179.7% during the first quarter. Janus Henderson Group PLC now owns 2,937,670 shares of the company's stock worth $2,878,000 after purchasing an additional 1,887,317 shares during the period. Two Sigma Investments LP raised its holdings in shares of Rackspace Technology by 368.4% in the 3rd quarter. Two Sigma Investments LP now owns 673,689 shares of the company's stock worth $950,000 after buying an additional 529,862 shares in the last quarter. Vanguard Group Inc. raised 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 worth $8,867,000 after buying an additional 359,087 shares in the last quarter. Geode Capital Management LLC lifted its position in shares of Rackspace Technology by 17.9% during the 2nd quarter. Geode Capital Management LLC now owns 2,064,549 shares of the company's stock worth $2,643,000 after buying an additional 313,636 shares during the period. Finally, JPMorgan Chase & Co. lifted its position in shares of Rackspace Technology by 25.5% during the 2nd quarter. JPMorgan Chase & Co. now owns 1,437,879 shares of the company's stock worth $1,840,000 after buying an additional 292,249 shares during the period. Institutional investors own 82.48% of the company's stock.

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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