CastleKnight Management LP Has $3.07 Million Holdings in Rackspace Technology, Inc. $RXT

CastleKnight Management LP cut its holdings in Rackspace Technology, Inc. (NASDAQ:RXT) by 19.7% during the 4th quarter, according to the company in its most recent disclosure with the SEC. The firm owned 3,159,780 shares of the company’s stock after selling 775,800 shares during the quarter. CastleKnight Management LP owned 1.30% of Rackspace Technology worth $3,068,000 as of its most recent SEC filing.

Several other institutional investors have also recently added to or reduced their stakes in the business. R Squared Ltd lifted its stake in Rackspace Technology by 74.3% in the third quarter. R Squared Ltd now owns 25,127 shares of the company’s stock valued at $35,000 after buying an additional 10,707 shares during the period. Engineers Gate Manager LP lifted its stake in Rackspace Technology by 47.1% in the second quarter. Engineers Gate Manager LP now owns 34,777 shares of the company’s stock valued at $45,000 after buying an additional 11,141 shares during the period. Alliancebernstein L.P. raised its position in shares of Rackspace Technology by 4.0% during the third quarter. Alliancebernstein L.P. now owns 290,750 shares of the company’s stock worth $410,000 after purchasing an additional 11,300 shares during the period. Creative Planning raised its position in shares of Rackspace Technology by 114.2% during the second quarter. Creative Planning now owns 25,715 shares of the company’s stock worth $33,000 after purchasing an additional 13,708 shares during the period. Finally, XTX Topco Ltd raised its position in shares of Rackspace Technology by 62.8% during the second quarter. XTX Topco Ltd now owns 57,682 shares of the company’s stock worth $74,000 after purchasing an additional 22,243 shares during the period. 82.48% of the stock is owned by institutional investors and hedge funds.

More Rackspace Technology News

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

• Positive Sentiment: Rackspace’s definitive agreement with AMD to deploy an initial 30 MW of AMD-based AI compute across its global data centers is being viewed as a meaningful growth catalyst, suggesting new enterprise revenue opportunities in AI infrastructure. AMD and Rackspace Technology Sign Definitive Agreement for Phased Deployment of 30 MW of AMD AI Compute
• Positive Sentiment: Market enthusiasm is being reinforced by heavy call-option buying and multiple reports highlighting Rackspace as an AI beneficiary, which points to rising investor momentum and short-covering interest. Rackspace Shares Jump 30% After Securing AMD-Powered AI Infrastructure Agreement (RXT)
• Positive Sentiment: Wall Street sentiment also got a lift when Royal Bank of Canada raised its price target on RXT to $4.00 from $2.50, signaling improved expectations for the company’s outlook even though the new target remains below the current share price. Benzinga report on RBC price target increase
• Neutral Sentiment: Recent commentary has framed Rackspace as a higher-beta AI infrastructure play rather than a legacy managed hosting company, which may support valuation but also leaves the stock vulnerable to sharp swings if execution disappoints. RXT Stock Surges To 4-Year Highs — Wall Street Highlights Multi-Industry Growth Potential After AMD Deal
• Negative Sentiment: Despite the AI optimism, Rackspace still faces financial pressure, including a recent earnings miss, negative margins, and tight liquidity, so the stock’s rally depends heavily on successful execution of the AMD rollout and cost cuts. Rackspace Technology earnings report

Insider Transactions at Rackspace Technology

In related news, CFO Mark A. Marino sold 48,099 shares of the company’s stock in a transaction on Thursday, June 4th. The stock was sold at an average price of $5.56, for a total transaction of $267,430.44. Following the completion of the sale, the chief financial officer owned 3,370,431 shares in the company, valued at approximately $18,739,596.36. This represents a 1.41% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. 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. Company insiders own 2.30% of the company’s stock.

Analyst Ratings Changes

RXT has been the topic of a number of research reports. Royal Bank Of Canada upped their target price on Rackspace Technology from $2.50 to $4.00 and gave the stock a “sector perform” rating in a research report on Wednesday. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Rackspace Technology in a research report on Tuesday, June 2nd. Two analysts have rated the stock with a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Reduce” and a consensus target price of $2.70.

Rackspace Technology Stock Up 21.3%

Shares of NASDAQ:RXT opened at $7.53 on Thursday. Rackspace Technology, Inc. has a twelve month low of $0.39 and a twelve month high of $8.60. The stock’s 50 day moving average is $3.71 and its 200-day moving average is $2.05. The firm has a market capitalization of $1.88 billion, a price-to-earnings ratio of -12.34 and a beta of 3.03.

Rackspace Technology (NASDAQ:RXT) last issued its earnings results on Thursday, May 7th. The company reported ($0.06) earnings per share 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 the consensus estimate of $660.83 million. Rackspace Technology has set its FY 2026 guidance at -0.200–0.150 EPS. Equities research analysts anticipate that Rackspace Technology, Inc. will post -0.18 earnings per share for the current fiscal year.

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.