Rackspace Technology Sees Unusually Large Options Volume (NASDAQ:RXT)

Rackspace Technology, Inc. (NASDAQ:RXT) was the target of some unusual options trading on Wednesday. Traders bought 20,449 call options on the stock. This is an increase of 4,656% compared to the average daily volume of 430 call options.

Key Stories Impacting Rackspace Technology

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

• Positive Sentiment: Rackspace and Palantir announced a strategic partnership to deploy Palantir Foundry and AIP in production with governed managed operations — Rackspace will provide security, controls and a governed operating model designed to accelerate enterprise AI deployments. This is the primary driver cited for the stock’s rally. GlobeNewswire
• Positive Sentiment: Market coverage and trading behavior amplified the move — multiple outlets reported the Palantir tie-up and the stock’s surge, and options traders bought a very large number of calls (20,449 contracts, ~4,656% above average), indicating speculative bullish positioning. Investing.com
• Neutral Sentiment: An updated short‑interest note is circulating; high short interest can amplify moves in either direction and contributes to volatility but does not change fundamentals on its own. American Banking News
• Negative Sentiment: Analysts and coverage caution this could be a speculative “Hail Mary” — Rackspace remains at low price levels with ongoing operational and financial challenges; some writers question whether a partnership alone will fix underlying issues. That skepticism tempers the upside and implies continued volatility. Benzinga

Insider Activity at Rackspace Technology

In other Rackspace Technology news, EVP Dharmendra Kumar Sinha sold 59,322 shares of the stock in a transaction on Monday, December 1st. The stock was sold at an average price of $1.01, for a total value of $59,915.22. Following the completion of the transaction, 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. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. 2.90% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of RXT. AustralianSuper Pty Ltd purchased a new position in Rackspace Technology during the third quarter worth 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 buying an additional 529,862 shares during the period. Janus Henderson Group PLC increased its holdings in Rackspace Technology by 70.7% in the 4th quarter. Janus Henderson Group PLC now owns 1,050,353 shares of the company’s stock valued at $1,020,000 after purchasing an additional 435,113 shares in the last quarter. Vanguard Group Inc. raised its holdings in shares of 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 buying an additional 359,087 shares during the period. Finally, Geode Capital Management LLC boosted its stake in shares of Rackspace Technology by 17.9% in the second quarter. Geode Capital Management LLC now owns 2,064,549 shares of the company’s stock valued at $2,643,000 after purchasing an additional 313,636 shares during the period. Institutional investors and hedge funds own 82.48% of the company’s stock.

Analyst Ratings Changes

A number of equities analysts have recently issued reports on RXT shares. Royal Bank Of Canada cut their price target on shares of Rackspace Technology from $2.00 to $1.75 and set a “sector perform” rating for the company in a report on Monday, November 10th. Weiss Ratings restated a “sell (d-)” rating on shares of Rackspace Technology in a research report on Thursday, January 22nd. Four investment analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Reduce” and a consensus price target of $1.51.

Rackspace Technology Stock Up 227.0%

NASDAQ RXT opened at $1.37 on Thursday. Rackspace Technology has a fifty-two week low of $0.39 and a fifty-two week high of $3.03. The business has a fifty day moving average of $0.84 and a 200-day moving average of $1.15. The stock has a market cap of $333.72 million, a price-to-earnings ratio of -1.27 and a beta of 2.18.

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.