Rackspace Technology (NASDAQ:RXT) Stock Price Expected to Rise, Royal Bank Of Canada Analyst Says

Rackspace Technology (NASDAQ:RXT) had its price objective lifted by investment analysts at Royal Bank Of Canada from $1.75 to $2.50 in a report released on Friday,Benzinga reports. The firm currently has a “sector perform” rating on the stock. Royal Bank Of Canada’s price objective points to a potential upside of 28.21% from the company’s current price.

Separately, Weiss Ratings reaffirmed 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 issued a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of “Reduce” and a consensus price target of $1.70.

Rackspace Technology Stock Performance

Shares of RXT opened at $1.95 on Friday. The stock has a 50-day simple moving average of $0.92 and a 200-day simple moving average of $1.17. The stock has a market capitalization of $475.00 million, a PE ratio of -2.05 and a beta of 2.18. Rackspace Technology has a 1 year low of $0.39 and a 1 year high of $2.49.

Insider Buying and Selling

In other news, CFO Mark A. Marino sold 234,683 shares of the firm’s stock in a transaction that occurred on Monday, February 23rd. The shares were sold at an average price of $1.63, for a total transaction 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 trade represents a 9.67% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, EVP Dharmendra Kumar Sinha sold 59,322 shares of Rackspace Technology stock in a transaction on Monday, December 1st. The shares were sold at an average price of $1.01, for a total transaction of $59,915.22. Following the completion of the transaction, the executive vice president directly owned 2,509,573 shares in the company, valued at $2,534,668.73. The trade was a 2.31% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Company insiders own 2.90% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Quadrature Capital Ltd acquired a new stake in shares of Rackspace Technology during the second quarter worth about $26,000. Savant Capital LLC acquired a new position in shares of Rackspace Technology in the third quarter valued at approximately $33,000. Creative Planning lifted its holdings in shares of 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 purchasing an additional 13,708 shares during the period. Jump Financial LLC purchased a new position in Rackspace Technology in the 4th quarter valued at $34,000. Finally, R Squared Ltd increased 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 buying an additional 10,707 shares during the period. 82.48% of the stock is currently owned by institutional investors and hedge funds.

Rackspace Technology News Summary

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.