Stock Traders Purchase High Volume of Rackspace Technology Call Options (NASDAQ:RXT)

Key Points

• Traders bought an unusually large volume of calls—26,478 call options, roughly a 259% increase over the daily average—while RXT shares jumped $1.97 to $4.24 on abnormally high trading volume (134.6M shares).
• Company insiders, including EVP Dharmendra Kumar Sinha and CFO Mark A. Marino, have sold heavily—502,440 shares in the last 90 days—leaving insiders with just 2.90% ownership.
• Rackspace missed quarterly EPS (‑$0.06 vs. ‑$0.03 expected) and issued FY2026 guidance of -0.200 to -0.150 EPS, and analysts collectively rate the stock as "Reduce" with an average target of $1.93.

Rackspace Technology, Inc. (NASDAQ:RXT - Get Free Report) saw unusually large options trading activity on Thursday. Investors purchased 26,478 call options on the company. This represents an increase of approximately 259% compared to the average daily volume of 7,380 call options.

Insider Transactions at Rackspace Technology

In other Rackspace Technology news, EVP Dharmendra Kumar Sinha sold 188,123 shares of Rackspace Technology stock in a transaction dated Wednesday, March 18th. The shares were sold at an average price of $1.81, for a total transaction of $340,502.63. Following the completion of the transaction, the executive vice president owned 2,276,057 shares in the company, valued at approximately $4,119,663.17. The trade was a 7.63% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO Mark A. Marino sold 234,683 shares of the business's stock in a transaction on Monday, February 23rd. The stock was sold at an average price of $1.63, for a total value of $382,533.29. Following the completion of the transaction, the chief financial officer directly 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 SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 502,440 shares of company stock valued at $867,173. 2.90% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Abel Hall LLC acquired a new stake in shares of Rackspace Technology in the first quarter valued at $30,000. Savant Capital LLC acquired a new stake in shares of Rackspace Technology during the 3rd quarter valued at $33,000. Creative Planning lifted its stake in shares of Rackspace Technology by 114.2% in the 2nd 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 last quarter. Jump Financial LLC acquired a new position in Rackspace Technology during the 4th quarter worth $34,000. Finally, SG Americas Securities LLC acquired a new position in shares of Rackspace Technology during the first quarter worth approximately $34,000. Institutional investors and hedge funds own 82.48% of the company's stock.

Rackspace Technology Stock Performance

Shares of RXT stock traded up $1.97 during trading hours on Thursday, reaching $4.24. The company had a trading volume of 134,632,126 shares, compared to its average volume of 20,606,287. Rackspace Technology has a twelve month low of $0.39 and a twelve month high of $4.62. The company has a market capitalization of $1.06 billion, a P/E ratio of -4.58 and a beta of 2.23. The stock's fifty day simple moving average is $1.57 and its 200 day simple moving average is $1.23.

Rackspace Technology (NASDAQ:RXT - Get Free Report) last released its quarterly earnings results on Thursday, May 7th. The company reported ($0.06) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.03) by ($0.03). Rackspace Technology has set its FY 2026 guidance at -0.200--0.150 EPS. As a group, equities analysts expect that Rackspace Technology will post -0.18 earnings per share for the current year.

Wall Street Analyst Weigh In

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

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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