Investors Purchase Large Volume of Put Options on Rackspace Technology (NASDAQ:RXT)

Rackspace Technology, Inc. (NASDAQ:RXT) was the recipient of unusually large options trading activity on Wednesday. Stock investors purchased 6,979 put options on the company. This represents an increase of approximately 36% compared to the typical daily volume of 5,116 put options.

Insiders Place Their Bets

In other news, CFO Mark A. Marino sold 20,183 shares of the company’s stock in a transaction on Monday, March 2nd. The shares were sold at an average price of $1.81, for a total value of $36,531.23. Following the sale, the chief financial officer directly owned 2,172,932 shares of the company’s stock, valued at approximately $3,933,006.92. This represents a 0.92% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, EVP Dharmendra Kumar Sinha sold 45,393 shares of the stock in a transaction on Monday, March 2nd. The stock was sold at an average price of $1.81, for a total transaction of $82,161.33. Following the sale, the executive vice president owned 2,464,180 shares of the company’s stock, valued at approximately $4,460,165.80. This trade represents a 1.81% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 300,259 shares of company stock worth $501,226. Insiders own 2.90% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. AustralianSuper Pty Ltd acquired a new stake in shares of Rackspace Technology in the 3rd quarter worth about $2,276,000. Two Sigma Investments LP boosted its stake in Rackspace Technology by 368.4% during the 3rd quarter. Two Sigma Investments LP now owns 673,689 shares of the company’s stock valued at $950,000 after purchasing an additional 529,862 shares during the last quarter. Janus Henderson Group PLC increased its holdings in Rackspace Technology by 70.7% during the 4th quarter. Janus Henderson Group PLC now owns 1,050,353 shares of the company’s stock worth $1,020,000 after purchasing an additional 435,113 shares in the last quarter. Vanguard Group Inc. increased its holdings in Rackspace Technology by 6.1% during the 3rd quarter. Vanguard Group Inc. now owns 6,288,882 shares of the company’s stock worth $8,867,000 after purchasing an additional 359,087 shares in the last quarter. Finally, Geode Capital Management LLC raised 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 worth $2,643,000 after purchasing an additional 313,636 shares during the last quarter. 82.48% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

Several research analysts have recently weighed in 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 raised their target price on Rackspace Technology from $1.75 to $2.50 and gave the stock a “sector perform” rating in a research note on Friday, February 27th. Four equities research analysts have rated the stock with a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat, Rackspace Technology currently has an average rating of “Reduce” and an average target price of $1.70.

Rackspace Technology Stock Down 1.5%

NASDAQ RXT opened at $1.92 on Thursday. Rackspace Technology has a 52 week low of $0.39 and a 52 week high of $2.74. The business has a 50 day moving average price of $1.11 and a 200-day moving average price of $1.22. The company has a market cap of $474.07 million, a price-to-earnings ratio of -2.02 and a beta of 1.80.

Rackspace Technology (NASDAQ:RXT) last issued its earnings results on Thursday, February 26th. The company reported ($0.01) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.04) by $0.03. The firm had revenue of $682.80 million during the quarter, compared to the consensus estimate of $672.56 million. Rackspace Technology has set its FY 2026 guidance at -0.200–0.15 EPS.

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.