Royal Bank Of Canada Boosts Rackspace Technology (NASDAQ:RXT) Price Target to $2.50

Rackspace Technology (NASDAQ:RXT) had its target price hoisted by equities research analysts at Royal Bank Of Canada from $1.75 to $2.50 in a research report issued on Friday,Benzinga reports. The brokerage currently has a “sector perform” rating on the stock. Royal Bank Of Canada’s price objective would indicate a potential upside of 30.55% from the company’s previous close.

Separately, Weiss Ratings reissued a “sell (d-)” rating on shares of Rackspace Technology in a research report on Thursday, January 22nd. Four research analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Reduce” and a consensus target price of $1.70.

Rackspace Technology Trading Down 16.0%

Shares of RXT stock traded down $0.37 during trading hours on Friday, reaching $1.92. The company’s stock had a trading volume of 41,452,177 shares, compared to its average volume of 31,072,783. Rackspace Technology has a one year low of $0.39 and a one year high of $2.49. The stock has a market capitalization of $466.47 million, a P/E ratio of -1.77 and a beta of 2.18. The firm’s fifty day simple moving average is $0.90 and its 200 day simple moving average is $1.16.

Insider Transactions at Rackspace Technology

In related news, EVP Dharmendra Kumar Sinha sold 59,322 shares of the stock in a transaction dated Monday, December 1st. The shares were sold at an average price of $1.01, for a total value 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. This trade represents a 2.31% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Mark A. Marino sold 234,683 shares of the company’s stock in a transaction dated Monday, February 23rd. The stock was sold at an average price of $1.63, for a total transaction of $382,533.29. Following the completion of the sale, the chief financial officer owned 2,193,115 shares in the company, 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 owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in RXT. Quadrature Capital Ltd purchased a new stake in shares of Rackspace Technology in the second quarter worth $26,000. Savant Capital LLC purchased a new stake in Rackspace Technology during the 3rd quarter valued at about $33,000. Creative Planning increased its stake in Rackspace Technology by 114.2% during the 2nd 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. Jump Financial LLC bought a new stake in Rackspace Technology during the 4th quarter valued at about $34,000. Finally, R Squared Ltd lifted its stake in shares of Rackspace Technology by 74.3% in the third quarter. R Squared Ltd now owns 25,127 shares of the company’s stock worth $35,000 after buying an additional 10,707 shares in the last quarter. Hedge funds and other institutional investors own 82.48% of the company’s stock.

Rackspace Technology News Summary

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

• Positive Sentiment: Rackspace highlighted an expanded role hosting Palantir AI platforms and is positioning around AI demand — a strategic win that could increase higher?margin services and customer stickiness. Does Rackspace’s New Role Hosting Palantir AI Platforms Change The Bull Case For RXT?
• Positive Sentiment: Management set a target for ~6% private cloud revenue growth in 2026 as AI demand accelerates — a clear growth objective for a core segment that could support margin improvement if execution follows. Rackspace outlines 6% private cloud revenue growth target for 2026 as AI demand accelerates
• Neutral Sentiment: Revenue for Q4 came in roughly in line/slightly above Street expectations ($683M vs ~$672.6M consensus), driven by public cloud strength (+6% YoY in Q4), which offsets weakness in private cloud. Rackspace Technology Reports Fourth Quarter and Full-Year 2025 Results
• Neutral Sentiment: Company published Q4 slide deck and prepared remarks (useful for modeling trends and margin commentary); analysts and investors will parse the call for signs of margin leverage and AI services uptake. View Press Release / Slide Deck
• Neutral Sentiment: Some outlets reported a large intraday pop (one report cited a ~68% move) after initial Q4 reaction — indicates volatility and divergent intraday positioning but not a lasting resolution of fundamentals. Rackspace Technology (RXT) Shares Skyrocket 68% After Beating Q4 Expectations
• Negative Sentiment: RXT missed on EPS in Q4 (reported ($0.13) vs. ($0.04) expected), signaling near?term profitability pressure and weakening investor confidence in near-term earnings power. MarketBeat Q4 earnings summary
• Negative Sentiment: Management issued FY2026 guidance that is notably below consensus: EPS guide of -$0.20 to -$0.15 vs. consensus ~-0.03 and revenue guide of ~$2.6–2.7B slightly under Street expectations — the guidance miss is the primary negative catalyst for the stock decline. What’s Going On With Rackspace Stock Friday?
• Negative Sentiment: Short interest rose sharply (~41% increase month-over-month, ~5.5% of float), which can amplify downside pressure and volatility if sentiment remains negative. (data aggregated from recent short interest reports)

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.