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

Rackspace Technology, Inc. (NASDAQ:RXT) was the target of some unusual options trading on Wednesday. Stock traders purchased 6,979 put options on the stock. This is an increase of 36% compared to the average volume of 5,116 put options.

Analysts Set New Price Targets

Several research firms have recently commented on RXT. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Rackspace Technology in a research note 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 note on Friday, February 27th. Four research analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Reduce” and an average target price of $1.70.

Rackspace Technology Trading Down 1.3%

RXT traded down $0.03 on Wednesday, hitting $1.93. 4,993,129 shares of the company’s stock traded hands, compared to its average volume of 29,675,531. The company’s 50 day simple moving average is $1.09 and its 200-day simple moving average is $1.22. Rackspace Technology has a one year low of $0.39 and a one year high of $2.74. The firm has a market cap of $475.30 million, a price-to-earnings ratio of -2.05 and a beta of 1.80.

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

Insider Activity at Rackspace Technology

In other news, EVP Dharmendra Kumar Sinha sold 45,393 shares of the firm’s stock in a transaction dated Monday, March 2nd. The shares were 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 $4,460,165.80. This trade represents a 1.81% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CFO Mark A. Marino sold 234,683 shares of the business’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 of the company’s stock, valued at $3,574,777.45. The trade was a 9.67% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 300,259 shares of company stock worth $501,226 over the last ninety days. 2.90% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Rackspace Technology

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Janus Henderson Group PLC increased its stake in shares of Rackspace Technology by 70.7% during the fourth 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. Bridgeway Capital Management LLC raised its holdings in shares of Rackspace Technology by 34.6% during the fourth quarter. Bridgeway Capital Management LLC now owns 350,000 shares of the company’s stock valued at $340,000 after acquiring an additional 90,000 shares during the last quarter. Jump Financial LLC acquired a new stake in shares of Rackspace Technology in the fourth quarter worth approximately $34,000. Wells Fargo & Company MN increased its position in shares of Rackspace Technology by 13.4% during the fourth quarter. Wells Fargo & Company MN now owns 244,939 shares of the company’s stock worth $238,000 after purchasing an additional 28,885 shares in the last quarter. Finally, Federated Hermes Inc. raised its stake in Rackspace Technology by 4.4% in the 4th quarter. Federated Hermes Inc. now owns 719,747 shares of the company’s stock valued at $699,000 after purchasing an additional 30,024 shares during the last quarter. 82.48% of the stock is owned by hedge funds and other institutional investors.

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.