Key Points
- Rackspace CFO Mark Marino sold 51,373 shares at an average price of $2.95, generating approximately $151,550. The transaction was conducted under a Rule 10b5-1 plan to cover tax withholding, leaving him with 2.87 million shares.
- Rackspace reported quarterly revenue of $670.1 million and an adjusted loss of $0.08 per share, beating analyst expectations of $646 million in revenue and a $0.09 loss. Analysts project a full-year loss of $0.28 per share.
- The stock opened at $3.01, while institutional investors own 82.48% of the company. Rackspace faces securities-related litigation allegations tied to its AI disclosures, and analyst sentiment remains cautious with an overall “Reduce” rating and a $4.00 price target.
Rackspace Technology, Inc. (NASDAQ:RXT - Get Free Report) CEO Gajakarnan Vibushanan Kandiah sold 8,258 shares of the business's stock in a transaction on Wednesday, September 2nd. The stock was sold at an average price of $2.95, for a total value of $24,361.10. Following the completion of the sale, the chief executive officer directly owned 4,183,683 shares in the company, valued at $12,341,864.85. This represents a 0.20% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. 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.
Rackspace Technology Stock Up 0.3%
Shares of RXT stock opened at $3.01 on Thursday. The stock has a 50-day simple moving average of $4.50 and a 200 day simple moving average of $3.54. Rackspace Technology, Inc. has a fifty-two week low of $0.39 and a fifty-two week high of $8.60. The stock has a market capitalization of $767.16 million, a P/E ratio of -4.63 and a beta of 3.05.
Rackspace Technology (NASDAQ:RXT - Get Free Report) last released its earnings results on Monday, August 10th. The company reported ($0.08) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.09) by $0.01. The firm had revenue of $670.10 million for the quarter, compared to analyst estimates of $646.00 million. On average, sell-side analysts anticipate that Rackspace Technology, Inc. will post -0.28 earnings per share for the current year.
More Rackspace Technology News
Here are the key news stories impacting Rackspace Technology this week:
- Neutral Sentiment: Investors who purchased Rackspace securities between May 7 and July 8, 2026, and suffered losses, may seek appointment as lead plaintiff by September 28. These notices are procedural and do not establish that Rackspace committed wrongdoing. Kaplan Fox deadline announcement
- Negative Sentiment: The lawsuit alleges that Rackspace and certain executives made misleading statements or failed to disclose material information about the company’s artificial-intelligence efforts and their expected impact on financial performance. Bleichmar Fonti & Auld lawsuit announcement
- Negative Sentiment: One litigation notice claims Rackspace’s June restructuring filing disclosed severance costs and anticipated savings but allegedly omitted a roughly $150 million revenue shortfall that surfaced about three weeks later. The allegations followed a reported 33.6% stock decline, increasing legal, reputational and potential financial risks for RXT. SueWallSt Rackspace deadline alert
Wall Street Analysts Forecast Growth
A number of analysts recently commented on the stock. Weiss Ratings reiterated a "sell (d-)" rating on shares of Rackspace Technology in a report on Friday, August 28th. Wall Street Zen cut shares of Rackspace Technology from a "hold" rating to a "sell" rating in a report on Saturday, August 15th. Finally, Royal Bank Of Canada raised their target price on shares of Rackspace Technology from $2.50 to $4.00 and gave the stock a "sector perform" rating in a report on Wednesday, June 17th. One research analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Rackspace Technology currently has a consensus rating of "Reduce" and a consensus target price of $4.00.
View Our Latest Report on RXT
Institutional Investors Weigh In On Rackspace Technology
A number of institutional investors and hedge funds have recently modified their holdings of RXT. Corient Private Wealth LP purchased a new stake in shares of Rackspace Technology during the second quarter valued at $297,000. California State Teachers Retirement System purchased a new position in Rackspace Technology in the 2nd quarter worth about $51,000. Lakeshore Financial Planning Inc. purchased a new position in Rackspace Technology in the 2nd quarter worth about $424,000. AXQ Capital LP increased its stake in Rackspace Technology by 239.8% in the 2nd quarter. AXQ Capital LP now owns 54,161 shares of the company's stock worth $354,000 after purchasing an additional 38,222 shares in the last quarter. Finally, Proficio Capital Partners LLC acquired a new stake in Rackspace Technology during the 2nd quarter worth about $119,000. 82.48% of the stock is owned by institutional investors and hedge funds.
About Rackspace Technology
(
Get Free Report)
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.
Further Reading
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