Rackspace Technology, Inc. (NASDAQ:RXT) Given Average Recommendation of “Reduce” by Analysts

Rackspace Technology, Inc. (NASDAQ:RXT) has earned a consensus rating of “Reduce” from the six analysts that are covering the stock, MarketBeat.com reports. Two research analysts have rated the stock with a sell recommendation and four have assigned a hold recommendation to the company. The average 1 year price objective among brokerages that have issued a report on the stock in the last year is $1.70.

A number of equities analysts recently issued reports on RXT shares. Weiss Ratings reiterated a “sell (d-)” rating on shares of Rackspace Technology in a research note on Thursday, January 22nd. Royal Bank Of Canada lifted their target price on shares of Rackspace Technology from $1.75 to $2.50 and gave the stock a “sector perform” rating in a report on Friday.

Rackspace Technology Trading Down 14.5%

Rackspace Technology stock opened at $1.95 on Friday. Rackspace Technology has a 12 month low of $0.39 and a 12 month high of $2.49. The company has a market capitalization of $475.00 million, a price-to-earnings ratio of -2.05 and a beta of 2.18. The business’s fifty day simple moving average is $0.92 and its two-hundred day simple moving average is $1.17.

Rackspace Technology News Roundup

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

• Positive Sentiment: Royal Bank of Canada raised its price target on RXT from $1.75 to $2.50 and kept a “sector perform” rating — the raise signals some analyst confidence in upside after the quarter. RBC Raises PT
• Positive Sentiment: Coverage highlights that Rackspace beat revenue expectations for Q4 and some outlets reported large intraday gains (one report noted a ~68% surge after perceived beats), reflecting momentum when results look better than revenue/other metrics. Blockonomi Q4 Reaction
• Positive Sentiment: Company is positioning for AI-led demand: management set a 6% private-cloud revenue growth target for 2026 and is expanding roles (including hosting Palantir platforms), which could improve longer-term growth if execution follows. Seeking Alpha on AI roadmap
• Neutral Sentiment: Official Q4 and full‑year release: Q4 revenue ~$683M (slightly above consensus), FY2025 revenue ~$2.686B (down ~2% Y/Y). Public-cloud grew while private-cloud was down — mixed operational picture that investors will parse for trends. Press Release
• Neutral Sentiment: Company materials and prepared remarks from the earnings call provide more detail on cash flow, segment trends and the strategic message of an “inflection point” — useful for investors digging into execution vs. guidance. Earnings Remarks
• Negative Sentiment: FY2026 guidance disappointed: management set EPS guidance of -$0.20 to -$0.15 (well below consensus near -$0.03) and revenue guidance at the low end of expectations — the below‑Street EPS/revenue outlook is the primary driver of the downside reaction. MarketBeat Earnings Summary
• Negative Sentiment: Several market pieces flagged that shares fell on the combination of the EPS miss (Q4 EPS missed consensus) and below‑consensus guidance — headline narratives are amplifying the sell pressure. Benzinga Guidance Coverage
• Negative Sentiment: Short interest rose sharply in February (≈41% increase month-over-month to ~12.9M shares), which increases selling pressure and stock volatility while creating a larger short base to cover in any rally. (Data reported in market summaries.)

Insider Buying and Selling

In related news, CFO Mark A. Marino sold 234,683 shares of the company’s stock in a transaction that occurred on Monday, February 23rd. The stock was sold at an average price of $1.63, for a total value of $382,533.29. Following the transaction, the chief financial officer directly owned 2,193,115 shares of the company’s stock, valued at approximately $3,574,777.45. This represents a 9.67% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, EVP Dharmendra Kumar Sinha sold 59,322 shares of the stock in a transaction 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 sale, the executive vice president 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. Additional details regarding this sale are available in the official SEC disclosure. 2.90% of the stock is owned by insiders.

Institutional Investors Weigh In On Rackspace Technology

Several large investors have recently bought and sold shares of the business. R Squared Ltd raised its position in Rackspace Technology by 74.3% in the 3rd quarter. R Squared Ltd now owns 25,127 shares of the company’s stock worth $35,000 after buying an additional 10,707 shares during the last quarter. Engineers Gate Manager LP boosted its holdings in shares of Rackspace Technology by 47.1% during the 2nd quarter. Engineers Gate Manager LP now owns 34,777 shares of the company’s stock valued at $45,000 after acquiring an additional 11,141 shares during the last quarter. Alliancebernstein L.P. grew its stake in shares of Rackspace Technology by 4.0% in the third quarter. Alliancebernstein L.P. now owns 290,750 shares of the company’s stock worth $410,000 after acquiring an additional 11,300 shares during the period. Creative Planning raised its holdings in shares of Rackspace Technology by 114.2% during the second quarter. Creative Planning now owns 25,715 shares of the company’s stock valued at $33,000 after purchasing an additional 13,708 shares during the last quarter. Finally, Intech Investment Management LLC lifted its position in Rackspace Technology by 45.4% during the second quarter. Intech Investment Management LLC now owns 51,692 shares of the company’s stock valued at $66,000 after purchasing an additional 16,152 shares during the period. 82.48% of the stock is currently owned by institutional investors.

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.