Gajakarnan Vibushanan Kandiah Sells 8,258 Shares of Rackspace Technology (NASDAQ:RXT) Stock

Rackspace Technology, Inc. (NASDAQ:RXT) CEO Gajakarnan Vibushanan Kandiah sold 8,258 shares of Rackspace Technology stock in a transaction dated Wednesday, September 2nd. The stock was sold at an average price of $2.95, for a total value of $24,361.10. Following the sale, the chief executive officer owned 4,183,683 shares of the company’s stock, valued at approximately $12,341,864.85. This represents a 0.20% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed 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.

Rackspace Technology Trading Up 9.3%

Shares of RXT stock opened at $3.29 on Friday. The company has a market capitalization of $838.52 million, a price-to-earnings ratio of -5.06 and a beta of 3.05. The firm has a 50-day moving average price of $4.44 and a 200 day moving average price of $3.56. Rackspace Technology, Inc. has a twelve month low of $0.39 and a twelve month high of $8.60.

Rackspace Technology (NASDAQ:RXT) last released its quarterly earnings results on Monday, August 10th. The company reported ($0.08) earnings per share (EPS) 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, research analysts predict that Rackspace Technology, Inc. will post -0.28 earnings per share for the current year.

Hedge Funds Weigh In On Rackspace Technology

A number of large investors have recently bought and sold shares of the stock. California State Teachers Retirement System acquired a new position in shares of Rackspace Technology in the 2nd quarter valued at $51,000. Legal & General Group Plc acquired a new stake in shares of Rackspace Technology during the 2nd quarter worth $58,000. Quantbot Technologies LP acquired a new stake in shares of Rackspace Technology during the 2nd quarter worth $63,000. Allworth Financial LP purchased a new position in shares of Rackspace Technology in the 2nd quarter worth $66,000. Finally, Strategic Investment Solutions Inc. IL acquired a new stake in shares of Rackspace Technology in the second quarter worth $67,000. Hedge funds and other institutional investors own 82.48% of the company’s stock.

Key Rackspace Technology News

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

• Neutral Sentiment: Several law firms reminded investors who purchased RXT shares between May 7 and July 8, 2026, that September 28 is the deadline to seek appointment as lead plaintiff in the federal securities class action. The notices are procedural and do not establish that Rackspace committed wrongdoing. Rosen Law Firm deadline announcement
• Negative Sentiment: The lawsuit alleges that Rackspace and certain executives misrepresented or failed to disclose material information about its AI efforts, capacity and capital allocation. One investor notice specifically alleges that reaffirmed fiscal 2026 guidance concealed a planned shift away from the company’s highest-margin segment. If proven, the claims could create legal costs, reputational damage and potential financial liabilities. SueWallSt shareholder alert
• Negative Sentiment: Another complaint-related notice alleges Rackspace’s restructuring disclosures omitted an approximately $150 million revenue shortfall that became apparent several weeks later, following a reported 33.6% stock decline. These are allegations, but the repeated notices keep litigation risk prominent for investors. Bleichmar Fonti & Auld lawsuit announcement
• Neutral Sentiment: CEO Gajakarnan Vibushanan Kandiah, CFO Mark Marino and EVP Dharmendra Kumar Sinha sold shares under pre-arranged Rule 10b5-1 plans to cover tax withholding tied to equity awards. The sales totaled about $492,000, but the executives retained substantial holdings, reducing the signal of discretionary insider selling. Rackspace insider Form 4 filing

Wall Street Analyst Weigh In

Several analysts have commented on RXT shares. Wall Street Zen cut shares of Rackspace Technology from a “hold” rating to a “sell” rating in a research note on Saturday, August 15th. Royal Bank Of Canada increased their price target on Rackspace Technology from $2.50 to $4.00 and gave the stock a “sector perform” rating in a research note on Wednesday, June 17th. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Rackspace Technology in a report on Friday, August 28th. One research analyst has rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Reduce” and a consensus price target of $4.00.

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.