Rackspace Technology (NASDAQ:RXT) Rating Lowered to Sell at Wall Street Zen

Rackspace Technology (NASDAQ:RXT) was downgraded by equities research analysts at Wall Street Zen from a “hold” rating to a “sell” rating in a research note issued to investors on Saturday.

A number of other research firms also recently commented on RXT. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Rackspace Technology in a report on Tuesday, June 2nd. Royal Bank Of Canada increased their target price on shares of Rackspace Technology from $2.50 to $4.00 and gave the stock a “sector perform” rating in a report on Wednesday, June 17th. One analyst has rated the stock with a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Reduce” and an average price target of $4.00.

Rackspace Technology Price Performance

Shares of RXT stock opened at $4.21 on Friday. The stock has a market cap of $1.07 billion, a P/E ratio of -6.48 and a beta of 3.05. Rackspace Technology has a fifty-two week low of $0.39 and a fifty-two week high of $8.60. The business has a fifty day simple moving average of $5.25 and a 200-day simple moving average of $3.28.

Rackspace Technology (NASDAQ:RXT) last announced its earnings results on Tuesday, August 11th. The company reported ($0.08) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.09) by $0.01. The business had revenue of $670.10 million for the quarter, compared to analyst estimates of $646.00 million. On average, sell-side analysts anticipate that Rackspace Technology will post -0.28 earnings per share for the current year.

Insiders Place Their Bets

In other Rackspace Technology news, CFO Mark A. Marino sold 48,099 shares of the business’s stock in a transaction dated Thursday, June 4th. The shares were sold at an average price of $5.56, for a total value of $267,430.44. Following the sale, the chief financial officer directly owned 3,370,431 shares in the company, valued at approximately $18,739,596.36. The trade was a 1.41% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 2.30% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Rackspace Technology

Large investors have recently made changes to their positions in the business. Abel Hall LLC bought a new stake in Rackspace Technology during the first quarter worth approximately $30,000. Creative Planning increased its holdings in shares of Rackspace Technology by 114.2% in the second quarter. Creative Planning now owns 25,715 shares of the company’s stock valued at $33,000 after buying an additional 13,708 shares in the last quarter. SG Americas Securities LLC bought a new position in shares of Rackspace Technology in the first quarter valued at $34,000. Jump Financial LLC acquired a new stake in shares of Rackspace Technology during the 4th quarter valued at $34,000. Finally, State of Wyoming acquired a new stake in shares of Rackspace Technology during the 1st quarter valued at $35,000. Institutional investors own 82.48% of the company’s stock.

More Rackspace Technology News

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

• Positive Sentiment: Rackspace reported quarterly revenue of $670.1 million, above the $646 million analyst consensus, while its adjusted loss per share was $0.08 versus estimates of a $0.09 loss. The results initially supported a sharp move higher in the shares. Rackspace Technology Shares Gap Up Following Earnings Beat
• Positive Sentiment: The company appointed Chetan Gupta, Ph.D., as chief AI officer. He will lead Rackspace’s AI strategy, research, governance and customer adoption, with a focus on enterprise, regulated-industry and sovereign AI deployments. The move may strengthen the company’s positioning in a strategically important growth market, although no immediate financial impact was disclosed. Rackspace Technology Appoints Chief AI Officer
• Neutral Sentiment: Multiple law firms are soliciting investors who purchased Rackspace securities from May 7 through July 8, 2026, to seek lead-plaintiff status by September 28, 2026. These releases largely repeat the same lawsuit announcement rather than representing separate new cases. Kaplan Fox Rackspace Investor Notice
• Negative Sentiment: The securities class action alleges that Rackspace and certain executives violated federal securities laws through material misstatements or omissions related to public-cloud resale representations and the company’s enterprise AI efforts. The notices reference a subsequent $125 million reduction in guidance after previously reaffirmed full-year targets. The allegations have not been proven, but the litigation creates legal, reputational and potential financial risks for RXT. SueWallSt Rackspace Class Action Summary

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.