Rackspace Technology Sees Unusually High Options Volume (NASDAQ:RXT)

Rackspace Technology, Inc. (NASDAQ:RXT) was the target of unusually large options trading activity on Tuesday. Stock traders bought 40,080 call options on the stock. This represents an increase of 143% compared to the typical daily volume of 16,465 call options.

Rackspace Technology Price Performance

RXT stock traded up $0.60 during midday trading on Tuesday, reaching $6.51. 54,579,500 shares of the company’s stock traded hands, compared to its average volume of 23,842,365. Rackspace Technology has a fifty-two week low of $0.39 and a fifty-two week high of $7.65. The company has a market capitalization of $1.62 billion, a P/E ratio of -10.65 and a beta of 3.01. The business has a 50-day moving average price of $3.48 and a two-hundred day moving average price of $1.97.

Rackspace Technology (NASDAQ:RXT) last posted its 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 firm had revenue of $678.10 million during 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, research analysts forecast that Rackspace Technology will post -0.18 earnings per share for the current fiscal year.

Insider Activity

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 sale, the chief financial officer directly 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 transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at 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. Also, EVP Dharmendra Kumar Sinha sold 188,123 shares of the business’s stock in a transaction dated 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 sale, the executive vice president owned 2,276,057 shares in the company, valued at $4,119,663.17. This represents a 7.63% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 250,280 shares of company stock worth $633,378 over the last quarter. Insiders own 2.30% of the company’s stock.

Institutional Trading of Rackspace Technology

Hedge funds and other institutional investors have recently modified their holdings of the company. Abel Hall LLC acquired a new position in Rackspace Technology in the 1st quarter worth about $30,000. Savant Capital LLC acquired a new position in Rackspace Technology in the third quarter worth about $33,000. Creative Planning boosted its position in Rackspace Technology by 114.2% in the second quarter. Creative Planning now owns 25,715 shares of the company’s stock valued at $33,000 after buying an additional 13,708 shares in the last quarter. SG Americas Securities LLC acquired a new position in Rackspace Technology in the first quarter valued at about $34,000. Finally, Jump Financial LLC acquired a new stake in Rackspace Technology in the 4th quarter valued at about $34,000. 82.48% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

RXT has been the subject of a number of recent research reports. Royal Bank Of Canada lifted their price objective on Rackspace Technology from $1.75 to $2.50 and gave the stock a “sector perform” rating in a research report on Friday, February 27th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Rackspace Technology in a research report on Tuesday, June 2nd. Two equities research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock 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.