Rackspace Technology (NASDAQ:RXT) Price Target Raised to $2.50

Rackspace Technology (NASDAQ:RXT) had its price target raised by Royal Bank Of Canada from $1.75 to $2.50 in a research report sent to investors on Friday,Benzinga reports. Royal Bank Of Canada currently has a sector perform rating on the stock.

Separately, Weiss Ratings restated a “sell (d-)” rating on shares of Rackspace Technology in a report on Thursday, January 22nd. Four research analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, Rackspace Technology currently has an average rating of “Reduce” and a consensus target price of $1.70.

Rackspace Technology Trading Down 14.5%

RXT opened at $1.95 on Friday. Rackspace Technology has a 1-year low of $0.39 and a 1-year high of $2.49. The company has a market cap of $475.00 million, a price-to-earnings ratio of -2.05 and a beta of 1.78. The company’s fifty day moving average price is $0.92 and its two-hundred day moving average price is $1.17.

Insider Buying and Selling at Rackspace Technology

In other 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 completion of the transaction, the chief financial officer directly owned 2,193,115 shares of the company’s stock, valued at $3,574,777.45. This represents a 9.67% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. 2.90% of the stock is owned by insiders.

Institutional Inflows and Outflows

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

Key Rackspace Technology News

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.)

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.