Investors Buy Large Volume of Rackspace Technology Call Options (NASDAQ:RXT)

Rackspace Technology, Inc. (NASDAQ:RXT) was the recipient of some unusual options trading activity on Thursday. Stock traders bought 23,438 call options on the company. This represents an increase of 35% compared to the average daily volume of 17,408 call options.

Insider Activity at Rackspace Technology

In other news, CFO Mark A. Marino sold 48,099 shares of the company’s 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 owned 3,370,431 shares of the company’s stock, valued at approximately $18,739,596.36. This represents a 1.41% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 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 owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of RXT. Vanguard Group Inc. raised its stake in shares of Rackspace Technology by 6.1% during the third quarter. Vanguard Group Inc. now owns 6,288,882 shares of the company’s stock worth $8,867,000 after acquiring an additional 359,087 shares in the last quarter. Janus Henderson Group PLC boosted its stake in shares of 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 purchasing an additional 1,887,317 shares in the last quarter. Geode Capital Management LLC grew its holdings in shares of Rackspace Technology by 4.2% during the 4th quarter. Geode Capital Management LLC now owns 2,408,000 shares of the company’s stock valued at $2,338,000 after purchasing an additional 96,760 shares during the last quarter. Renaissance Technologies LLC grew its holdings in shares of Rackspace Technology by 14.0% during the 1st quarter. Renaissance Technologies LLC now owns 2,041,600 shares of the company’s stock valued at $2,000,000 after purchasing an additional 250,700 shares during the last quarter. Finally, JPMorgan Chase & Co. raised its position in Rackspace Technology by 1.8% in the 3rd quarter. JPMorgan Chase & Co. now owns 1,464,389 shares of the company’s stock worth $2,065,000 after purchasing an additional 26,510 shares during the period. 82.48% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on the company. Royal Bank Of Canada upped their target price 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. Weiss Ratings reissued a “sell (d-)” rating on shares of Rackspace Technology in a report on Tuesday, June 2nd. Two investment analysts have 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 a consensus rating of “Reduce” and an average target price of $2.70.

Rackspace Technology Price Performance

NASDAQ RXT traded down $1.76 during trading hours on Thursday, reaching $4.82. 34,601,722 shares of the stock traded hands, compared to its average volume of 23,618,445. The stock has a 50 day simple moving average of $5.29 and a two-hundred day simple moving average of $2.63. Rackspace Technology has a 1 year low of $0.39 and a 1 year high of $8.60. The company has a market cap of $1.20 billion, a price-to-earnings ratio of -7.87 and a beta of 2.99.

Rackspace Technology (NASDAQ:RXT) last posted its quarterly earnings data 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 analysts’ expectations of $660.83 million. Rackspace Technology has set its FY 2026 guidance at -0.200–0.150 EPS.

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.