Rackspace Technology, Inc. (NASDAQ:RXT) Sees Large Decline in Short Interest

Rackspace Technology, Inc. (NASDAQ:RXT) was the recipient of a large drop in short interest in May. As of May 29th, there was short interest totaling 15,351,512 shares, a drop of 34.2% from the May 14th total of 23,342,880 shares. Approximately 6.3% of the shares of the stock are short sold. Based on an average daily volume of 23,622,012 shares, the days-to-cover ratio is currently 0.6 days.

Insiders Place Their Bets

In other Rackspace Technology news, EVP Dharmendra Kumar Sinha sold 188,123 shares of the 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 completion of the transaction, the executive vice president directly owned 2,276,057 shares of the company’s stock, valued at approximately $4,119,663.17. This trade represents a 7.63% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Mark A. Marino sold 48,099 shares of the stock in a transaction on 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 ownership of the stock. The SEC filing for this sale provides additional information. 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. Over the last ninety days, insiders have sold 250,280 shares of company stock valued at $633,378. 2.30% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Rackspace Technology

Large investors have recently made changes to their positions in the company. AEGON USA Investment Management LLC purchased a new stake in shares of Rackspace Technology in the fourth quarter valued at $194,000. JPMorgan Chase & Co. lifted its holdings in shares of Rackspace Technology by 1.8% in 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. R Squared Ltd lifted its holdings in shares of Rackspace Technology by 74.3% in the third quarter. R Squared Ltd now owns 25,127 shares of the company’s stock valued at $35,000 after purchasing an additional 10,707 shares in the last quarter. Savant Capital LLC purchased a new stake in shares of Rackspace Technology in the third quarter valued at $33,000. Finally, Arete Wealth Advisors LLC purchased a new stake in shares of Rackspace Technology in the first quarter valued at $219,000. Institutional investors and hedge funds own 82.48% of the company’s stock.

Analysts Set New Price Targets

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

Rackspace Technology Trading Up 14.7%

Shares of NASDAQ RXT traded up $0.87 during midday trading on Tuesday, reaching $6.78. The company’s stock had a trading volume of 51,924,271 shares, compared to its average volume of 23,818,510. The company has a 50 day moving average price of $3.48 and a 200 day moving average price of $1.97. Rackspace Technology has a one year low of $0.39 and a one year high of $7.65. The company has a market cap of $1.69 billion, a price-to-earnings ratio of -11.21 and a beta of 3.01.

Rackspace Technology (NASDAQ:RXT) last released 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 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. Research analysts anticipate that Rackspace Technology will post -0.18 earnings per share for the current fiscal year.

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.