Rackspace Technology (NASDAQ:RXT) Stock Price Down 7.6% – Should You Sell?

Rackspace Technology, Inc. (NASDAQ:RXT)’s share price traded down 7.6% on Wednesday . The stock traded as low as $6.08 and last traded at $6.2450. 17,702,426 shares traded hands during trading, a decline of 25% from the average session volume of 23,505,803 shares. The stock had previously closed at $6.76.

Rackspace Technology News Summary

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

• Positive Sentiment: Rackspace announced new AI-related partnerships with Palantir and AMD that could expand its enterprise reach and support future growth. Article
• Positive Sentiment: Rackspace said its enterprise AI strategy is gaining traction, and some analysts view the stock as undervalued if the turnaround continues. Article
• Neutral Sentiment: Unusually heavy call-option buying suggests traders are positioning for a rebound, but it does not confirm a fundamental improvement. Article
• Negative Sentiment: Rackspace cut FY26 revenue guidance and adjusted EBITDA expectations, raising concerns about slowing growth and prompting a securities investigation notice. Article
• Negative Sentiment: The company also said it plans a stock offering, which can add dilution and has contributed to investor anxiety. Article

Analysts Set New Price Targets

A number of equities research analysts recently commented on the company. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Rackspace Technology in a report on Tuesday, June 2nd. Royal Bank Of Canada increased their price target 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. Two equities research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of “Reduce” and a consensus price target of $2.70.

Rackspace Technology Stock Up 15.7%

The stock has a market cap of $1.26 billion, a PE ratio of -8.32 and a beta of 2.99. The business has a 50 day moving average price of $5.34 and a 200 day moving average price of $2.65.

Rackspace Technology (NASDAQ:RXT) last announced its quarterly earnings results on Thursday, May 7th. The company reported ($0.06) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.03) by ($0.03). The business 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.

Insider Transactions at Rackspace Technology

In other news, CFO Mark A. Marino sold 48,099 shares of the stock in a transaction dated Thursday, June 4th. The shares were sold at an average price of $5.56, for a total transaction of $267,430.44. Following the sale, the chief financial officer directly owned 3,370,431 shares of the company’s stock, valued at $18,739,596.36. This represents a 1.41% decrease in their position. The transaction was disclosed in a legal filing with the SEC, 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. Company insiders own 2.30% of the company’s stock.

Hedge Funds Weigh In On Rackspace Technology

Large investors have recently bought and sold shares of the business. Vanguard Group Inc. increased its position in shares of 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 buying an additional 359,087 shares in the last quarter. 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 acquiring an additional 1,887,317 shares during the period. Geode Capital Management LLC increased its holdings in Rackspace Technology by 4.2% in the 4th quarter. Geode Capital Management LLC now owns 2,408,000 shares of the company’s stock worth $2,338,000 after acquiring an additional 96,760 shares in the last quarter. Renaissance Technologies LLC raised its position in Rackspace Technology by 14.0% during the first quarter. Renaissance Technologies LLC now owns 2,041,600 shares of the company’s stock worth $2,000,000 after acquiring an additional 250,700 shares during the period. Finally, JPMorgan Chase & Co. lifted its holdings in Rackspace Technology by 1.8% during the third quarter. JPMorgan Chase & Co. now owns 1,464,389 shares of the company’s stock valued at $2,065,000 after purchasing an additional 26,510 shares in the last quarter. 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.