Rackspace Technology (NASDAQ:RXT) Sets New 12-Month High – Time to Buy?

Rackspace Technology, Inc. (NASDAQ:RXT)’s share price reached a new 52-week high on Thursday . The stock traded as high as $4.12 and last traded at $4.0920, with a volume of 70204384 shares changing hands. The stock had previously closed at $2.27.

More Rackspace Technology News

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

• Positive Sentiment: Rackspace announced a memorandum of understanding with AMD to build an Enterprise AI Cloud for regulated and sovereign workloads, a partnership that could strengthen its position in enterprise AI infrastructure and drive future revenue growth. Rackspace Technology and AMD Sign Memorandum of Understanding to Establish New Category of Governed Enterprise AI Infrastructure
• Positive Sentiment: The company reported first-quarter revenue of $678 million, which topped expectations and was up 2% year over year, suggesting demand remains stable despite ongoing profitability challenges. Rackspace Technology Reports First Quarter 2026 Results
• Positive Sentiment: Trading interest surged, with unusually large call option activity indicating that some investors are betting on further upside in RXT shares.
• Neutral Sentiment: Rackspace’s earnings per share came in at a loss of $0.06, worse than the consensus loss of $0.03, which tempers enthusiasm around the quarter. Rackspace Technology earnings report and conference call
• Neutral Sentiment: Management’s FY2026 guidance calls for adjusted EPS of -$0.20 to -$0.15 and revenue of $2.6 billion to $2.7 billion, which was roughly in line on sales but still points to continued losses. Rackspace Technology Reports First Quarter 2026 Results
• Negative Sentiment: Private cloud revenue declined 6% year over year, showing that some parts of the business remain under pressure even as public cloud improved. Rackspace Technology Reports First Quarter 2026 Results

Analyst Upgrades and Downgrades

Several analysts have weighed in on RXT shares. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Rackspace Technology in a research report on Thursday, January 22nd. Royal Bank Of Canada lifted their price objective on Rackspace Technology from $1.75 to $2.50 and gave the company a “sector perform” rating in a research report on Friday, February 27th. Three equities research analysts have rated the stock with a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Reduce” and an average price target of $1.95.

Rackspace Technology Stock Performance

The business has a 50-day moving average price of $1.61 and a 200 day moving average price of $1.24. The stock has a market capitalization of $1.37 billion, a P/E ratio of -9.02 and a beta of 2.23.

Rackspace Technology (NASDAQ:RXT) last issued its quarterly earnings results on Thursday, May 7th. The company reported ($0.06) EPS for the quarter, missing analysts’ consensus estimates of ($0.03) by ($0.03). The firm had revenue of $678.10 million during the quarter, compared to analysts’ expectations of $660.83 million. Rackspace Technology has set its FY 2026 guidance at -0.200–0.150 EPS. As a group, research analysts forecast that Rackspace Technology, Inc. will post -0.18 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, EVP Dharmendra Kumar Sinha sold 188,123 shares of the business’s stock in a transaction that occurred on Wednesday, March 18th. The stock was sold at an average price of $1.81, for a total value of $340,502.63. Following the sale, the executive vice president directly owned 2,276,057 shares of the company’s stock, valued at $4,119,663.17. The trade was a 7.63% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CFO Mark A. Marino sold 14,058 shares of the business’s stock in a transaction that occurred on Wednesday, March 18th. The stock was sold at an average price of $1.81, for a total value of $25,444.98. Following the completion of the sale, the chief financial officer directly owned 2,158,874 shares in the company, valued at approximately $3,907,561.94. This represents a 0.65% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 502,440 shares of company stock worth $867,173. Insiders own 2.90% of the company’s stock.

Institutional Trading of Rackspace Technology

Hedge funds have recently made changes to their positions in the stock. R Squared Ltd lifted its position 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 acquiring an additional 10,707 shares in the last quarter. Engineers Gate Manager LP lifted its position in Rackspace Technology by 47.1% in the 2nd quarter. Engineers Gate Manager LP now owns 34,777 shares of the company’s stock valued at $45,000 after acquiring an additional 11,141 shares in the last quarter. Alliancebernstein L.P. lifted its position in Rackspace Technology by 4.0% in the 3rd quarter. Alliancebernstein L.P. now owns 290,750 shares of the company’s stock valued at $410,000 after acquiring an additional 11,300 shares in the last quarter. Creative Planning lifted its position in Rackspace Technology by 114.2% in the 2nd quarter. Creative Planning now owns 25,715 shares of the company’s stock valued at $33,000 after acquiring an additional 13,708 shares in the last quarter. Finally, XTX Topco Ltd lifted its position in Rackspace Technology by 62.8% in the 2nd quarter. XTX Topco Ltd now owns 57,682 shares of the company’s stock valued at $74,000 after acquiring an additional 22,243 shares in the last quarter. 82.48% of the stock is owned by institutional investors.

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.