Rackspace Technology Target of Unusually Large Options Trading (NASDAQ:RXT)

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

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on RXT shares. Weiss Ratings reissued 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. Two analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of “Reduce” and a consensus price target of $2.70.

Rackspace Technology Stock Down 26.8%

Shares of Rackspace Technology stock traded down $1.76 during mid-day trading on Thursday, hitting $4.82. The stock had a trading volume of 34,601,722 shares, compared to its average volume of 23,618,445. The firm has a 50-day moving average of $5.29 and a two-hundred day moving average of $2.63. The firm has a market cap of $1.20 billion, a P/E ratio of -7.87 and a beta of 2.99. Rackspace Technology has a 12-month low of $0.39 and a 12-month high of $8.60.

Rackspace Technology (NASDAQ:RXT) last released its quarterly 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 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.

Insider Transactions 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 sale, the chief financial officer directly owned 3,370,431 shares of the company’s stock, valued at $18,739,596.36. This represents a 1.41% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible 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.

Hedge Funds Weigh In On Rackspace Technology

A number of hedge funds have recently modified their holdings of RXT. Vanguard Group Inc. raised its position in Rackspace Technology by 6.1% in 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 holdings in Rackspace Technology by 179.7% during the first quarter. Janus Henderson Group PLC now owns 2,937,670 shares of the company’s stock worth $2,878,000 after buying an additional 1,887,317 shares in the last quarter. Geode Capital Management LLC increased its holdings in Rackspace Technology by 4.2% in the fourth quarter. Geode Capital Management LLC now owns 2,408,000 shares of the company’s stock valued at $2,338,000 after buying an additional 96,760 shares in the last quarter. Renaissance Technologies LLC increased its holdings in Rackspace Technology by 14.0% in the first quarter. Renaissance Technologies LLC now owns 2,041,600 shares of the company’s stock valued at $2,000,000 after buying an additional 250,700 shares in the last quarter. Finally, JPMorgan Chase & Co. increased its holdings in 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 buying an additional 26,510 shares in the last quarter. 82.48% of the stock is currently owned by hedge funds and other institutional investors.

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.