Rackspace Technology (NASDAQ:RXT) Sets New 52-Week High Following Analyst Upgrade

Rackspace Technology, Inc. (NASDAQ:RXT)’s stock price reached a new 52-week high during trading on Thursday after Royal Bank Of Canada raised their price target on the stock from $2.50 to $4.00. Royal Bank Of Canada currently has a sector perform rating on the stock. Rackspace Technology traded as high as $8.60 and last traded at $7.53, with a volume of 65341100 shares changing hands. The stock had previously closed at $6.21.

Separately, Weiss Ratings reissued a “sell (d-)” rating on shares of Rackspace Technology in a research note on Tuesday, June 2nd. Two analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company has an average rating of “Reduce” and an average target price of $2.70.

Insider Activity

In other news, CFO Mark A. Marino sold 48,099 shares of the stock in a transaction dated Thursday, June 4th. The shares were sold at an average price of $5.56, for a total transaction of $267,430.44. Following the sale, the chief financial officer directly owned 3,370,431 shares of the company’s stock, valued at $18,739,596.36. This represents a 1.41% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. 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 currently owned by insiders.

Rackspace Technology News Roundup

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

• Positive Sentiment: Rackspace’s definitive agreement with AMD to deploy an initial 30 MW of AMD-based AI compute across its global data centers is being viewed as a meaningful growth catalyst, suggesting new enterprise revenue opportunities in AI infrastructure. AMD and Rackspace Technology Sign Definitive Agreement for Phased Deployment of 30 MW of AMD AI Compute
• Positive Sentiment: Market enthusiasm is being reinforced by heavy call-option buying and multiple reports highlighting Rackspace as an AI beneficiary, which points to rising investor momentum and short-covering interest. Rackspace Shares Jump 30% After Securing AMD-Powered AI Infrastructure Agreement (RXT)
• Positive Sentiment: Wall Street sentiment also got a lift when Royal Bank of Canada raised its price target on RXT to $4.00 from $2.50, signaling improved expectations for the company’s outlook even though the new target remains below the current share price. Benzinga report on RBC price target increase
• Neutral Sentiment: Recent commentary has framed Rackspace as a higher-beta AI infrastructure play rather than a legacy managed hosting company, which may support valuation but also leaves the stock vulnerable to sharp swings if execution disappoints. RXT Stock Surges To 4-Year Highs — Wall Street Highlights Multi-Industry Growth Potential After AMD Deal
• Negative Sentiment: Despite the AI optimism, Rackspace still faces financial pressure, including a recent earnings miss, negative margins, and tight liquidity, so the stock’s rally depends heavily on successful execution of the AMD rollout and cost cuts. Rackspace Technology earnings report

Institutional Investors Weigh In On Rackspace Technology

Hedge funds have recently modified their holdings of the company. AEGON USA Investment Management LLC purchased a new stake in shares of Rackspace Technology during the 4th quarter worth about $194,000. Creative Planning raised its position in shares of Rackspace Technology by 114.2% during the 2nd quarter. Creative Planning now owns 25,715 shares of the company’s stock worth $33,000 after purchasing an additional 13,708 shares during the last quarter. Bank of New York Mellon Corp raised its position in shares of Rackspace Technology by 35.4% during the 1st quarter. Bank of New York Mellon Corp now owns 239,954 shares of the company’s stock worth $235,000 after purchasing an additional 62,768 shares during the last quarter. Renaissance Technologies LLC raised its position in shares of Rackspace Technology by 14.0% during the 1st quarter. Renaissance Technologies LLC now owns 2,041,600 shares of the company’s stock worth $2,000,000 after purchasing an additional 250,700 shares during the last quarter. Finally, 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 worth $2,878,000 after purchasing an additional 1,887,317 shares during the last quarter. 82.48% of the stock is owned by hedge funds and other institutional investors.

Rackspace Technology Trading Up 21.3%

The firm’s 50-day moving average is $3.71 and its two-hundred day moving average is $2.05. The stock has a market cap of $1.88 billion, a price-to-earnings ratio of -12.34 and a beta of 3.03.

Rackspace Technology (NASDAQ:RXT) last released its quarterly earnings results on Thursday, May 7th. The company reported ($0.06) earnings per share for the quarter, missing the consensus estimate of ($0.03) by ($0.03). The company had revenue of $678.10 million for the quarter, compared to analysts’ expectations of $660.83 million. Rackspace Technology has set its FY 2026 guidance at -0.200–0.150 EPS. On average, analysts predict that Rackspace Technology, Inc. will post -0.18 earnings per share for the current year.

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.