Rackspace Technology, Inc. (NASDAQ:RXT) Sees Large Increase in Short Interest

Rackspace Technology, Inc. (NASDAQ:RXT) was the recipient of a large increase in short interest in February. As of February 13th, there was short interest totaling 12,895,212 shares, an increase of 41.2% from the January 29th total of 9,134,292 shares. Currently, 5.5% of the shares of the stock are sold short. Based on an average daily volume of 3,162,409 shares, the days-to-cover ratio is presently 4.1 days. Based on an average daily volume of 3,162,409 shares, the days-to-cover ratio is presently 4.1 days. Currently, 5.5% of the shares of the stock are sold short.

More 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.)

Insiders Place Their Bets

In other Rackspace Technology news, CFO Mark A. Marino sold 234,683 shares of the company’s stock in a transaction dated Monday, February 23rd. The shares were 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 in the company, valued at approximately $3,574,777.45. This represents a 9.67% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders own 2.90% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in RXT. AustralianSuper Pty Ltd acquired a new position in shares of Rackspace Technology in the 3rd quarter valued at approximately $2,276,000. Two Sigma Investments LP raised its holdings in Rackspace Technology by 368.4% in the third quarter. Two Sigma Investments LP now owns 673,689 shares of the company’s stock valued at $950,000 after acquiring an additional 529,862 shares in the last quarter. Janus Henderson Group PLC raised its holdings in Rackspace Technology by 70.7% in the fourth quarter. Janus Henderson Group PLC now owns 1,050,353 shares of the company’s stock valued at $1,020,000 after acquiring an additional 435,113 shares in the last quarter. Vanguard Group Inc. boosted its stake in Rackspace Technology by 6.1% during the 3rd quarter. Vanguard Group Inc. now owns 6,288,882 shares of the company’s stock valued at $8,867,000 after acquiring an additional 359,087 shares during the last quarter. Finally, Geode Capital Management LLC grew 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 worth $2,643,000 after acquiring an additional 313,636 shares in the last quarter. 82.48% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several analysts have commented on the company. Weiss Ratings restated a “sell (d-)” rating on shares of Rackspace Technology in a report on Thursday, January 22nd. Royal Bank Of Canada raised their target price on shares of Rackspace Technology from $1.75 to $2.50 and gave the stock a “sector perform” rating in a research report on Friday. Four analysts have rated the stock with a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Reduce” and an average target price of $1.70.

Rackspace Technology Stock Down 14.5%

Shares of RXT stock opened at $1.95 on Monday. Rackspace Technology has a fifty-two week low of $0.39 and a fifty-two week high of $2.49. The firm’s 50 day moving average price is $0.92 and its two-hundred day moving average price is $1.17. The stock has a market cap of $475.00 million, a price-to-earnings ratio of -2.05 and a beta of 1.78.

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.