Investors Buy Large Volume of Rackspace Technology Call Options (NASDAQ:RXT)

Rackspace Technology, Inc. (NASDAQ:RXT) saw some unusual options trading activity on Tuesday. Stock traders purchased 40,080 call options on the company. This represents an increase of 143% compared to the typical daily volume of 16,465 call options.

Rackspace Technology Stock Performance

NASDAQ:RXT traded up $0.64 during mid-day trading on Tuesday, reaching $6.55. The stock had a trading volume of 54,579,500 shares, compared to its average volume of 23,842,365. The firm has a 50 day moving average price of $3.48 and a two-hundred day moving average price of $1.97. The stock has a market capitalization of $1.63 billion, a P/E ratio of -10.65 and a beta of 3.01. Rackspace Technology has a one year low of $0.39 and a one year high of $7.65.

Rackspace Technology (NASDAQ:RXT) last announced its 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). The company had revenue of $678.10 million during the quarter, compared to the consensus estimate of $660.83 million. Rackspace Technology has set its FY 2026 guidance at -0.200–0.150 EPS. Research analysts forecast that Rackspace Technology will post -0.18 earnings per share for the current year.

Insider Activity at Rackspace Technology

In other news, CFO Mark A. Marino sold 48,099 shares of Rackspace Technology stock in a transaction that occurred on Thursday, June 4th. The shares were sold at an average price of $5.56, for a total transaction of $267,430.44. Following the completion of the sale, the chief financial officer owned 3,370,431 shares in the company, valued at $18,739,596.36. The trade was a 1.41% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through 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. Also, EVP Dharmendra Kumar Sinha sold 188,123 shares of Rackspace Technology stock in a transaction 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 $4,119,663.17. This represents a 7.63% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 250,280 shares of company stock valued at $633,378. 2.30% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. AEGON USA Investment Management LLC bought a new position in Rackspace Technology in the fourth quarter worth approximately $194,000. JPMorgan Chase & Co. grew its stake in Rackspace Technology by 1.8% in the third quarter. JPMorgan Chase & Co. now owns 1,464,389 shares of the company’s stock worth $2,065,000 after purchasing an additional 26,510 shares in the last quarter. R Squared Ltd raised its stake in Rackspace Technology by 74.3% in the third quarter. R Squared Ltd now owns 25,127 shares of the company’s stock worth $35,000 after buying an additional 10,707 shares in the last quarter. Savant Capital LLC purchased a new stake in Rackspace Technology during the third quarter worth $33,000. Finally, Arete Wealth Advisors LLC purchased a new stake in Rackspace Technology during the first quarter worth $219,000. Institutional investors own 82.48% of the company’s stock.

Analyst Ratings Changes

A number of equities analysts have recently weighed in on the stock. Weiss Ratings reissued a “sell (d-)” rating on shares of Rackspace Technology in a research report on Tuesday, June 2nd. Royal Bank Of Canada lifted their price target on shares of Rackspace Technology from $1.75 to $2.50 and gave the company a “sector perform” rating in a research report on Friday, February 27th. Two investment analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Rackspace Technology presently has an average rating of “Reduce” and an average price target of $1.95.

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.