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

Rackspace Technology, Inc. (NASDAQ:RXT) was the recipient of some unusual options trading on Wednesday. Stock investors purchased 20,449 call options on the company. This represents an increase of approximately 4,656% compared to the average daily volume of 430 call options.

Key Headlines Impacting Rackspace Technology

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

• Positive Sentiment: Partnership with Palantir to run Foundry and AIP in production under Rackspace’s managed, governed operating model — this is the core catalyst investors seized on because it promises faster time-to-production for AI use cases and positions Rackspace as a managed-cloud partner for Palantir deployments. Rackspace and Palantir Partner to Run Foundry and AIP in Production with Governed Managed Operations
• Positive Sentiment: Market reaction: RXT spiked pre-market and into the session as traders priced the partnership as a transformational revenue/visibility catalyst for an otherwise distressed name. Multiple headlines and coverage amplified the move and drove much higher-than-normal volume. Rackspace stock soars after strategic AI partnership with Palantir
• Positive Sentiment: Unusual options activity: traders bought a very large number of RXT call options (reported ~20,449 contracts, a several-thousand-percent jump vs typical). That speculative/options demand likely amplified the move and created short‑covering/momentum dynamics. (Options volume reported in market flow summaries.)
• Neutral Sentiment: Short interest update is available and remains a relevant background factor — high short interest can magnify price moves (both up and down) but does not change the company’s fundamentals on its own. Rackspace Technology, Inc. (NASDAQ:RXT) Short Interest Update
• Negative Sentiment: Analyst/commentary caution: coverage (and one piece calling this a “Hail Mary”) highlights that Rackspace remains a low‑priced, high‑risk stock with weak recent fundamentals and that the partnership, while strategically positive, may take time to materially improve revenue/earnings — so the rally could be short‑lived or speculative. Rackspace Soars on Palantir Deal: Will the Hail Mary Save the Stock?

Analysts Set New Price Targets

Several analysts have recently weighed in on the stock. Royal Bank Of Canada lowered their price objective on shares of Rackspace Technology from $2.00 to $1.75 and set a “sector perform” rating on the stock in a research report on Monday, November 10th. Weiss Ratings reissued a “sell (d-)” rating on shares of Rackspace Technology in a research note on Thursday, January 22nd. Four investment analysts have rated the stock with a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, Rackspace Technology presently has an average rating of “Reduce” and a consensus target price of $1.51.

Insider Activity

In related news, EVP Dharmendra Kumar Sinha sold 59,322 shares of the company’s stock in a transaction that occurred on Monday, December 1st. The shares were sold at an average price of $1.01, for a total value of $59,915.22. Following the transaction, the executive vice president directly owned 2,509,573 shares in the company, valued at approximately $2,534,668.73. This represents a 2.31% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 2.90% of the company’s stock.

Hedge Funds Weigh In On Rackspace Technology

Several institutional investors and hedge funds have recently bought and sold shares of RXT. AQR Capital Management LLC lifted its position in Rackspace Technology by 228.6% in the first quarter. AQR Capital Management LLC now owns 264,565 shares of the company’s stock valued at $447,000 after purchasing an additional 184,058 shares during the last quarter. Dynamic Technology Lab Private Ltd purchased a new position in shares of Rackspace Technology in the first quarter worth $113,000. Geode Capital Management LLC raised its holdings in Rackspace Technology by 17.9% during the 2nd quarter. Geode Capital Management LLC now owns 2,064,549 shares of the company’s stock valued at $2,643,000 after buying an additional 313,636 shares during the last quarter. Creative Planning raised its holdings in 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 buying an additional 13,708 shares during the last quarter. Finally, Intech Investment Management LLC grew its holdings in Rackspace Technology by 45.4% in the 2nd quarter. Intech Investment Management LLC now owns 51,692 shares of the company’s stock worth $66,000 after acquiring an additional 16,152 shares during the last quarter. 82.48% of the stock is currently owned by institutional investors.

Rackspace Technology Stock Down 10.6%

Shares of NASDAQ:RXT opened at $1.23 on Friday. The stock has a market cap of $298.40 million, a PE ratio of -1.13 and a beta of 2.18. The company’s fifty day moving average is $0.84 and its 200 day moving average is $1.15. Rackspace Technology has a 52 week low of $0.39 and a 52 week high of $3.03.

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.