Rackspace Technology (NASDAQ:RXT) CEO Gajakarnan Vibushanan Kandiah Sells 498,728 Shares of Stock

Rackspace Technology, Inc. (NASDAQ:RXT) CEO Gajakarnan Vibushanan Kandiah sold 498,728 shares of the company’s stock in a transaction on Friday, September 4th. The shares were sold at an average price of $3.21, for a total transaction of $1,600,916.88. Following the completion of the sale, the chief executive officer directly owned 3,684,955 shares in the company, valued at $11,828,705.55. This trade represents a 11.92% decrease in their ownership of the stock. 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.

Gajakarnan Vibushanan Kandiah also recently made the following trade(s):

• On Wednesday, September 2nd, Gajakarnan Vibushanan Kandiah sold 8,258 shares of Rackspace Technology stock. The stock was sold at an average price of $2.95, for a total transaction of $24,361.10.

Rackspace Technology Price Performance

Shares of Rackspace Technology stock opened at $3.23 on Wednesday. The firm has a fifty day moving average price of $4.25 and a 200 day moving average price of $3.61. Rackspace Technology, Inc. has a 1 year low of $0.39 and a 1 year high of $8.60. The stock has a market cap of $823.24 million, a PE ratio of -4.97 and a beta of 3.05.

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

Analyst Ratings Changes

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

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in RXT. Abel Hall LLC purchased a new stake in shares of Rackspace Technology during the 1st quarter worth about $30,000. Creative Planning grew its position in shares of Rackspace Technology by 114.2% during the 2nd 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 purchased a new position in shares of Rackspace Technology in the 1st quarter valued at about $34,000. Jump Financial LLC purchased a new position in shares of Rackspace Technology in the 4th quarter valued at about $34,000. Finally, State of Wyoming acquired a new position in Rackspace Technology in the 1st quarter worth about $35,000. Hedge funds and other institutional investors own 82.48% of the company’s stock.

Key Stories Impacting Rackspace Technology

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

• Neutral Sentiment: CEO Gajakarnan Vibushanan Kandiah sold 498,728 shares for approximately $1.6 million under a pre-arranged Rule 10b5-1 plan. The filing said the sale was intended to cover tax-withholding obligations related to vested equity awards, reducing the likelihood that it represents a discretionary negative view of the company. SEC Form 4 filing
• Negative Sentiment: Multiple law firms publicized a securities class action against Rackspace and urged investors to seek lead-plaintiff status by September 28, 2026. The proposed class covers investors who purchased Rackspace securities from May 7 through July 8, 2026. These announcements repeat the same litigation claims and could weigh on sentiment by increasing attention on potential legal liabilities. Kaplan Fox class action alert
• Negative Sentiment: The lawsuits allege Rackspace misled investors about its artificial-intelligence efforts and their effect on financial performance. Law firms said the allegations followed a reported 33.6% stock decline; however, the claims remain allegations and have not been proven in court. RXT lawsuit alert regarding AI efforts

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.