Rackspace Technology (NASDAQ:RXT) Shares Up 8.8% – Still a Buy?

Rackspace Technology, Inc. (NASDAQ:RXT)’s stock price rose 8.8% during trading on Monday . The stock traded as high as $4.55 and last traded at $4.4950. Approximately 3,031,253 shares were traded during mid-day trading, a decline of 86% from the average session volume of 22,367,447 shares. The stock had previously closed at $4.13.

Trending Headlines about Rackspace Technology

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

• Neutral Sentiment: Multiple law firms are reminding investors that September 28, 2026, is the deadline to seek lead-plaintiff status in the already-filed federal class action. The repeated announcements largely provide procedural updates rather than new allegations or financial disclosures. Faruqi & Faruqi deadline reminder
• Negative Sentiment: The central lawsuit allegation is that Rackspace failed to disclose that its enterprise AI buildout would redirect capacity and capital away from its profitable private-cloud business. One law firm said investors lost approximately $2.21 per share after the alleged disclosures emerged. The claims have not been proven. Kessler Topaz lawsuit announcement
• Negative Sentiment: Several firms describe a prior 33.6% share-price decline as the event prompting the securities-fraud case. Continued legal notices may increase investor uncertainty, potentially expose Rackspace to litigation costs or damages, and keep attention focused on execution risks surrounding its AI strategy. Rackspace AI-related stock-drop lawsuit

Analysts Set New Price Targets

A number of research analysts have recently weighed in on RXT shares. Weiss Ratings reissued a “sell (d-)” rating on shares of Rackspace Technology in a research report on Tuesday, June 2nd. 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 report on Wednesday, June 17th. Two equities research analysts have rated the stock with a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Reduce” and an average target price of $2.70.

Rackspace Technology Price Performance

The company has a market cap of $1.31 billion, a P/E ratio of -8.44 and a beta of 3.05. The company’s 50-day moving average is $5.35 and its two-hundred day moving average is $3.07.

Rackspace Technology (NASDAQ:RXT) last released its quarterly earnings data on Thursday, May 7th. The company reported ($0.06) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.03) by ($0.03). The company had revenue of $678.10 million during 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 Activity at Rackspace Technology

In related news, CFO Mark A. Marino sold 48,099 shares of Rackspace Technology stock in a transaction dated Thursday, June 4th. The stock was sold at an average price of $5.56, for a total value of $267,430.44. Following the completion of the sale, 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 position. The transaction was disclosed in a filing with the Securities & Exchange Commission, 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 Trading of Rackspace Technology

Large investors have recently modified their holdings of the company. Abel Hall LLC bought a new position in Rackspace Technology in the first quarter worth approximately $30,000. Creative Planning increased its holdings in Rackspace Technology by 114.2% in the 2nd 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. SG Americas Securities LLC bought a new stake in Rackspace Technology during the 1st quarter worth approximately $34,000. Jump Financial LLC purchased a new position in Rackspace Technology during the fourth quarter valued at approximately $34,000. Finally, State of Wyoming bought a new position in shares of Rackspace Technology in the first quarter worth approximately $35,000. 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.