Investors Purchase High Volume of Call Options on Rackspace Technology (NASDAQ:RXT)

Rackspace Technology, Inc. (NASDAQ:RXT) was the recipient of unusually large options trading activity on Thursday. Traders purchased 26,478 call options on the stock. This is an increase of approximately 259% compared to the typical volume of 7,380 call options.

Rackspace Technology Stock Up 86.9%

Shares of RXT traded up $1.97 during midday trading on Thursday, reaching $4.24. 134,632,126 shares of the stock were exchanged, 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 cap of $1.06 billion, a P/E ratio of -4.58 and a beta of 2.23. The stock’s 50 day simple moving average is $1.57 and its 200 day simple moving average is $1.23.

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

Wall Street Analyst Weigh In

A number of analysts recently weighed in on the stock. Weiss Ratings reissued a “sell (d-)” rating on shares of Rackspace Technology in a report on Thursday, January 22nd. Royal Bank Of Canada upped their target price on shares of 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 research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Reduce” and an average price target of $1.93.

Insider Buying and Selling at Rackspace Technology

In other 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 completion of the sale, 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 transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, EVP Dharmendra Kumar Sinha sold 188,123 shares of the firm’s stock in a transaction that occurred on Wednesday, March 18th. The stock was sold at an average price of $1.81, for a total transaction of $340,502.63. Following the sale, the executive vice president directly owned 2,276,057 shares of the company’s stock, valued at approximately $4,119,663.17. The trade was a 7.63% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 502,440 shares of company stock valued at $867,173 over the last quarter. Corporate insiders own 2.90% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. Vanguard Group Inc. increased its holdings in Rackspace Technology by 6.1% in the third quarter. Vanguard Group Inc. now owns 6,288,882 shares of the company’s stock valued at $8,867,000 after purchasing an additional 359,087 shares during the period. Geode Capital Management LLC increased its position in Rackspace Technology by 4.2% during the 4th quarter. Geode Capital Management LLC now owns 2,408,000 shares of the company’s stock valued at $2,338,000 after purchasing an additional 96,760 shares during the period. AustralianSuper Pty Ltd acquired a new stake in Rackspace Technology during the 3rd quarter worth about $2,276,000. JPMorgan Chase & Co. grew its holdings in Rackspace Technology by 1.8% during the 3rd quarter. JPMorgan Chase & Co. now owns 1,464,389 shares of the company’s stock worth $2,065,000 after acquiring an additional 26,510 shares during the period. Finally, Janus Henderson Group PLC grew its holdings in Rackspace Technology by 70.7% during the 4th quarter. Janus Henderson Group PLC now owns 1,050,353 shares of the company’s stock worth $1,020,000 after acquiring an additional 435,113 shares during the period. Institutional investors and hedge funds own 82.48% of the company’s stock.

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.