Rackspace Technology (NASDAQ:RXT) Shares Gap Up – Should You Buy?

Rackspace Technology, Inc. (NASDAQ:RXT) shares gapped up before the market opened on Thursday . The stock had previously closed at $3.24, but opened at $3.52. Rackspace Technology shares last traded at $3.1960, with a volume of 8,907,848 shares changing hands.

Key Stories Impacting Rackspace Technology

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

• Positive Sentiment: Rackspace joined the NVIDIA Cloud Partner Program and announced NVIDIA Blackwell-powered infrastructure for regulated enterprises and government customers. The offering combines NVIDIA accelerated computing, Palantir software and Rackspace-managed private cloud services, potentially strengthening the company’s position in the growing sovereign-AI market. Rackspace joins NVIDIA Cloud Partner Program
• Positive Sentiment: Market coverage characterized the NVIDIA and Palantir collaboration as an “AI trifecta,” suggesting potential demand from enterprises and governments seeking governed AI deployments. The announcement helped drive investor interest in Rackspace’s strategic shift toward higher-value AI services. Nvidia, Palantir and Rackspace AI partnership coverage
• Neutral Sentiment: Multiple law firms are reminding investors that September 28, 2026 is the deadline to seek lead-plaintiff status in a federal securities class action covering purchases made from May 7 through July 8, 2026. The announcements largely repeat previously reported litigation information rather than disclose a new court ruling or financial impact. Robbins LLP Rackspace securities class action notice
• Negative Sentiment: The litigation alleges that Rackspace made material misstatements or omissions concerning its enterprise-AI strategy. Notices cite an alleged 15% workforce reduction, exits from colocation and basic-hosting businesses, and the eventual reduction of full-year revenue expectations by $150 million on July 9. These allegations, if proven, could increase legal costs, reputational risk and investor uncertainty; they have not been adjudicated. Rackspace securities fraud class action allegations

Analyst Ratings Changes

Several research analysts recently weighed in on the stock. Royal Bank Of Canada boosted their price objective on shares of Rackspace Technology from $2.50 to $4.00 and gave the stock a “sector perform” rating in a research report on Wednesday, June 17th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Rackspace Technology in a research report on Friday, August 28th. Finally, Wall Street Zen cut Rackspace Technology from a “hold” rating to a “sell” rating in a research note on Saturday, August 15th. One equities research analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Reduce” and a consensus target price of $4.00.

Rackspace Technology Price Performance

The business has a 50 day moving average of $4.08 and a 200 day moving average of $3.63. The firm has a market capitalization of $820.69 million, a price-to-earnings ratio of -4.95 and a beta of 3.05.

Rackspace Technology (NASDAQ:RXT) last released its earnings results on Monday, August 10th. The company reported ($0.08) earnings per share for the quarter, beating the consensus estimate of ($0.09) by $0.01. The company had revenue of $670.10 million during the quarter, compared to analyst estimates of $646.00 million. As a group, equities analysts predict that Rackspace Technology, Inc. will post -0.28 EPS for the current year.

Insider Activity

In other Rackspace Technology news, Director Anthony Scott sold 48,780 shares of the company’s stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $4.25, for a total value of $207,315.00. Following the completion of the sale, the director owned 180,215 shares of the company’s stock, valued at approximately $765,913.75. This represents a 21.30% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Mark A. Marino sold 51,373 shares of the stock in a transaction on Wednesday, September 2nd. The stock was sold at an average price of $2.95, for a total transaction of $151,550.35. Following the completion of the sale, the chief financial officer owned 2,865,853 shares in the company, valued at approximately $8,454,266.35. This trade represents a 1.76% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 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. Insiders sold 714,141 shares of company stock worth $2,299,799 over the last quarter. 2.30% of the stock is owned by insiders.

Institutional Trading of Rackspace Technology

A number of large investors have recently made changes to their positions in RXT. AQR Capital Management LLC raised its stake in Rackspace Technology by 228.6% during the 1st quarter. AQR Capital Management LLC now owns 264,565 shares of the company’s stock worth $447,000 after buying an additional 184,058 shares during the period. Dynamic Technology Lab Private Ltd acquired a new position in Rackspace Technology in the first quarter valued at about $113,000. Geode Capital Management LLC grew its stake in Rackspace Technology by 17.9% in the second quarter. Geode Capital Management LLC now owns 2,064,549 shares of the company’s stock valued at $2,643,000 after acquiring an additional 313,636 shares during the period. Creative Planning increased its holdings in shares of Rackspace Technology by 114.2% in the second quarter. Creative Planning now owns 25,715 shares of the company’s stock worth $33,000 after acquiring an additional 13,708 shares in the last quarter. Finally, JPMorgan Chase & Co. increased its holdings in shares of Rackspace Technology by 25.5% in the second quarter. JPMorgan Chase & Co. now owns 1,437,879 shares of the company’s stock worth $1,840,000 after acquiring an additional 292,249 shares in the last quarter. Institutional investors own 82.48% of the company’s stock.

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.