Rackspace Technology (NASDAQ:RXT) Lowered to Sell Rating by Wall Street Zen

Wall Street Zen lowered shares of Rackspace Technology (NASDAQ:RXT) from a hold rating to a sell rating in a research note released on Saturday morning.

Several other equities research analysts also recently commented on RXT. Royal Bank Of Canada lifted their price objective on Rackspace Technology from $2.50 to $4.00 and gave the stock a “sector perform” rating in a report on Wednesday, June 17th. Weiss Ratings restated a “sell (d-)” rating on shares of Rackspace Technology in a research note on Tuesday, June 2nd. One research analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Rackspace Technology currently has an average rating of “Reduce” and a consensus target price of $4.00.

Rackspace Technology Stock Down 2.1%

Shares of NASDAQ RXT opened at $4.21 on Friday. Rackspace Technology has a twelve month low of $0.39 and a twelve month high of $8.60. The firm has a market cap of $1.07 billion, a P/E ratio of -6.48 and a beta of 3.05. The company has a 50 day moving average of $5.25 and a 200 day moving average of $3.27.

Rackspace Technology (NASDAQ:RXT) last issued its earnings results on Tuesday, August 11th. 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 for the quarter, compared to analysts’ expectations of $646.00 million. As a group, equities analysts expect that Rackspace Technology will post -0.28 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Rackspace Technology news, CFO Mark A. Marino sold 48,099 shares of the stock in a transaction that occurred 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 directly owned 3,370,431 shares in the company, valued at approximately $18,739,596.36. This trade represents a 1.41% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 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. Corporate insiders own 2.30% of the company’s stock.

Institutional Investors Weigh In On Rackspace Technology

Hedge funds have recently modified their holdings of the business. Janus Henderson Group PLC raised its position in shares of Rackspace Technology by 179.7% during 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 during the period. Renaissance Technologies LLC boosted its holdings in Rackspace Technology by 14.0% in the 1st quarter. Renaissance Technologies LLC now owns 2,041,600 shares of the company’s stock worth $2,000,000 after buying an additional 250,700 shares during the period. Arete Wealth Advisors LLC bought a new position in Rackspace Technology in the 1st quarter worth $219,000. Kathmere Capital Management LLC purchased a new stake in Rackspace Technology in the 1st quarter worth $116,000. Finally, AEGON USA Investment Management LLC purchased a new stake in Rackspace Technology in the 4th quarter worth $194,000. Institutional investors own 82.48% of the company’s stock.

Rackspace Technology News Summary

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

• Positive Sentiment: Rackspace reported quarterly revenue of $670.1 million, above the $646 million analyst consensus, while its adjusted loss per share was $0.08 versus estimates of a $0.09 loss. The results initially supported a sharp move higher in the shares. Rackspace Technology Shares Gap Up Following Earnings Beat
• Positive Sentiment: The company appointed Chetan Gupta, Ph.D., as chief AI officer. He will lead Rackspace’s AI strategy, research, governance and customer adoption, with a focus on enterprise, regulated-industry and sovereign AI deployments. The move may strengthen the company’s positioning in a strategically important growth market, although no immediate financial impact was disclosed. Rackspace Technology Appoints Chief AI Officer
• Neutral Sentiment: Multiple law firms are soliciting investors who purchased Rackspace securities from May 7 through July 8, 2026, to seek lead-plaintiff status by September 28, 2026. These releases largely repeat the same lawsuit announcement rather than representing separate new cases. Kaplan Fox Rackspace Investor Notice
• Negative Sentiment: The securities class action alleges that Rackspace and certain executives violated federal securities laws through material misstatements or omissions related to public-cloud resale representations and the company’s enterprise AI efforts. The notices reference a subsequent $125 million reduction in guidance after previously reaffirmed full-year targets. The allegations have not been proven, but the litigation creates legal, reputational and potential financial risks for RXT. SueWallSt Rackspace Class Action Summary

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.