Rackspace Technology (NASDAQ:RXT) Trading Up 12.4% Following Analyst Upgrade

Rackspace Technology, Inc. (NASDAQ:RXT)’s stock price traded up 12.4% on Wednesday after Royal Bank Of Canada raised their price target on the stock from $2.50 to $4.00. Royal Bank Of Canada currently has a sector perform rating on the stock. Rackspace Technology traded as high as $7.40 and last traded at $6.9770. 10,561,202 shares were traded during mid-day trading, a decline of 56% from the average session volume of 23,933,275 shares. The stock had previously closed at $6.21.

Separately, Weiss Ratings reissued a “sell (d-)” rating on shares of Rackspace Technology in a report on Tuesday, June 2nd. Two research 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 a consensus rating of “Reduce” and an average target price of $2.70.

Insider Buying and Selling at Rackspace Technology

In related news, CFO Mark A. Marino sold 48,099 shares of the business’s stock in a transaction dated Thursday, June 4th. The shares were sold at an average price of $5.56, for a total value of $267,430.44. Following the transaction, the chief financial officer directly owned 3,370,431 shares of the company’s stock, valued at approximately $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 can be accessed 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. Company insiders own 2.30% of the company’s stock.

Rackspace Technology News Summary

Here are the key news stories impacting Rackspace Technology this week:

• Positive Sentiment: Rackspace announced a definitive agreement with AMD for a phased deployment of 30 MW of AMD AI compute capacity across its data-center footprint, boosting sentiment around future revenue opportunities from AI infrastructure. Article Title
• Positive Sentiment: Market coverage highlighted the AMD deal as a key reason the stock has been surging, with investors betting the partnership strengthens Rackspace’s position in AI data-center services. Article Title
• Positive Sentiment: Trading activity spiked sharply, including unusually heavy call-option buying, suggesting traders are positioning for continued upside following the AMD announcement. Article Title
• Neutral Sentiment: Royal Bank of Canada raised its price target on Rackspace to $4.00 from $2.50 but kept a “sector perform” rating, which suggests improving expectations but still implies the shares may be ahead of fundamentals at current levels. Article Title
• Neutral Sentiment: Earlier coverage and management discussion focused on the phased AMD AI compute rollout and GPU-as-a-Service collaboration, reinforcing that the move is a longer-term strategic initiative rather than an immediate revenue jump. Article Title
• Negative Sentiment: RBC’s new $4 price target is still well below the stock’s recent trading level, signaling that some analysts think the rally may have run ahead of near-term valuation. Article Title

Institutional Investors Weigh In On Rackspace Technology

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Janus Henderson Group PLC grew its stake in Rackspace Technology by 179.7% in the 1st quarter. Janus Henderson Group PLC now owns 2,937,670 shares of the company’s stock valued at $2,878,000 after buying an additional 1,887,317 shares in the last quarter. Two Sigma Investments LP grew its stake in Rackspace Technology by 368.4% in the 3rd quarter. Two Sigma Investments LP now owns 673,689 shares of the company’s stock valued at $950,000 after buying an additional 529,862 shares in the last quarter. Vanguard Group Inc. grew its stake in Rackspace Technology by 6.1% in the 3rd quarter. Vanguard Group Inc. now owns 6,288,882 shares of the company’s stock valued at $8,867,000 after buying an additional 359,087 shares in the last quarter. Geode Capital Management LLC grew its stake in Rackspace Technology by 17.9% in the 2nd quarter. Geode Capital Management LLC now owns 2,064,549 shares of the company’s stock valued at $2,643,000 after buying an additional 313,636 shares in the last quarter. Finally, JPMorgan Chase & Co. grew its stake in Rackspace Technology by 25.5% in the 2nd quarter. JPMorgan Chase & Co. now owns 1,437,879 shares of the company’s stock valued at $1,840,000 after buying an additional 292,249 shares in the last quarter. 82.48% of the stock is currently owned by institutional investors.

Rackspace Technology Stock Performance

The firm has a market capitalization of $1.77 billion, a PE ratio of -11.56 and a beta of 3.03. The business’s 50 day moving average is $3.58 and its two-hundred day moving average is $2.00.

Rackspace Technology (NASDAQ:RXT) last released its quarterly earnings data 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 for the quarter, compared to analyst estimates of $660.83 million. Rackspace Technology has set its FY 2026 guidance at -0.200–0.150 EPS. As a group, equities research analysts predict that Rackspace Technology, Inc. will post -0.18 EPS for the current year.

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.