Rackspace Technology (NASDAQ:RXT) Cut to “Sell” at Wall Street Zen

Wall Street Zen lowered shares of Rackspace Technology (NASDAQ:RXT) from a hold rating to a sell rating in a research note issued to investors on Saturday.

Other analysts have also issued research reports about the company. Weiss Ratings restated a “sell (d-)” rating on shares of Rackspace Technology in a research note on Tuesday, June 2nd. Royal Bank Of Canada boosted their target price on Rackspace Technology from $2.50 to $4.00 and gave the stock a “sector perform” rating in a report on Wednesday, June 17th. One investment analyst has rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Reduce” and an average price target of $4.00.

Rackspace Technology Price Performance

Shares of RXT stock opened at $3.95 on Friday. The company has a fifty day moving average price of $5.24 and a two-hundred day moving average price of $3.31. Rackspace Technology has a one year low of $0.39 and a one year high of $8.60. The stock has a market cap of $1.01 billion, a P/E ratio of -6.08 and a beta of 3.05.

Rackspace Technology (NASDAQ:RXT) last released its quarterly earnings data on Tuesday, August 11th. The company reported ($0.08) earnings per share for the quarter, topping the consensus estimate of ($0.09) by $0.01. The firm had revenue of $670.10 million for the quarter, compared to analyst estimates of $646.00 million. As a group, equities research analysts anticipate that Rackspace Technology will post -0.28 EPS for the current fiscal year.

Insider Transactions at Rackspace Technology

In related news, Director Anthony Scott sold 48,780 shares of the company’s stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $4.25, for a total value of $207,315.00. Following the transaction, the director owned 180,215 shares in the company, valued at approximately $765,913.75. This represents a 21.30% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, 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 completion of the transaction, the chief financial officer directly owned 3,370,431 shares in the company, valued at approximately $18,739,596.36. This represents 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. 2.30% of the stock is currently owned by corporate insiders.

Institutional Trading of Rackspace Technology

Several institutional investors have recently added to or reduced their stakes in RXT. Abel Hall LLC bought a new position in Rackspace Technology during the 1st quarter worth $30,000. Creative Planning boosted its position in shares of 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 acquiring an additional 13,708 shares during the period. SG Americas Securities LLC bought a new stake in shares of Rackspace Technology in the first quarter valued at about $34,000. Jump Financial LLC bought a new stake in shares of Rackspace Technology in the fourth quarter valued at about $34,000. Finally, State of Wyoming acquired a new position in shares of Rackspace Technology in the first quarter valued at about $35,000. 82.48% of the stock is currently owned by institutional investors.

Rackspace Technology News Summary

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

• Neutral Sentiment: Several law firms announced or promoted the same pending federal securities class action, with a September 28, 2026 deadline for investors to seek appointment as lead plaintiff. The notices target investors who purchased Rackspace securities between May 7 and July 8, 2026; the deadline itself does not establish that the allegations are valid. Rackspace Technology securities fraud class-action deadline
• Negative Sentiment: The lawsuits allege that Rackspace and certain executives made material misstatements or omissions concerning the company’s enterprise AI efforts. One notice linked the case to a reported stock decline of roughly 33%, raising concerns about potential litigation costs, management distraction, and reputational damage if the claims advance. Rackspace securities fraud class action after AI effort issues
• Negative Sentiment: The concentrated legal-news coverage adds uncertainty around Rackspace’s AI growth narrative and could keep volatility elevated. The announcements are largely investor-solicitation notices repeating the same allegations, rather than new company operating results or a court finding against Rackspace. Faruqi Rackspace class-action notice

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.