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

Shares of Rackspace Technology, Inc. (NASDAQ:RXT) have been assigned an average rating of “Reduce” from the six ratings firms that are presently covering the firm, Marketbeat.com reports. Two investment analysts have rated the stock with a sell rating and four have assigned a hold rating to the company. The average 12 month price target among brokers that have issued a report on the stock in the last year is $1.70.

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

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.)

Rackspace Technology Stock Performance

Shares of RXT stock opened at $1.95 on Friday. The firm has a market cap of $475.00 million, a P/E ratio of -2.05 and a beta of 2.18. Rackspace Technology has a fifty-two week low of $0.39 and a fifty-two week high of $2.49. The business’s 50 day moving average price is $0.92 and its 200-day moving average price is $1.17.

Insider Buying and Selling

In related news, EVP Dharmendra Kumar Sinha sold 59,322 shares of the company’s 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 sale, the executive vice president directly owned 2,509,573 shares of the company’s stock, valued at $2,534,668.73. This represents a 2.31% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO Mark A. Marino sold 234,683 shares of the stock in a transaction 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 owned 2,193,115 shares of the company’s stock, valued at approximately $3,574,777.45. This trade represents a 9.67% decrease in their position. The SEC filing for this sale provides additional information. 2.90% of the stock is currently owned by corporate insiders.

Institutional Trading of Rackspace Technology

A number of hedge funds and other institutional investors have recently modified their holdings of the business. R Squared Ltd increased its stake in shares of 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 acquiring an additional 10,707 shares in the last quarter. Engineers Gate Manager LP grew its holdings in Rackspace Technology by 47.1% in the second quarter. Engineers Gate Manager LP now owns 34,777 shares of the company’s stock worth $45,000 after purchasing an additional 11,141 shares during the period. Alliancebernstein L.P. increased its stake in shares of 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 purchasing an additional 11,300 shares in the last quarter. Creative Planning increased its stake 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 in the last quarter. Finally, Intech Investment Management LLC lifted its holdings in shares of 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 last quarter. 82.48% of the stock is owned by hedge funds and other institutional investors.

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.