Headlands Technologies LLC Invests $1.45 Million in Rackspace Technology, Inc. $RXT

Headlands Technologies LLC purchased a new position in shares of Rackspace Technology, Inc. (NASDAQ:RXT) in the second quarter, HoldingsChannel.com reports. The fund purchased 222,224 shares of the company’s stock, valued at approximately $1,451,000.

Several other hedge funds have also recently added to or reduced their stakes in the stock. Legal & General Group Plc bought a new position in shares of Rackspace Technology during the second quarter worth $58,000. Quantbot Technologies LP bought a new stake in Rackspace Technology during the 2nd quarter worth approximately $63,000. Allworth Financial LP acquired a new stake in Rackspace Technology during the 2nd quarter worth approximately $66,000. Strategic Investment Solutions Inc. IL bought a new position in Rackspace Technology in the second quarter valued at approximately $67,000. Finally, Wealthcare Advisory Partners LLC acquired a new position in shares of Rackspace Technology in the second quarter valued at approximately $72,000. Institutional investors and hedge funds own 82.48% of the company’s stock.

Analysts Set New Price Targets

RXT has been the subject of several research reports. Royal Bank Of Canada increased their price objective on shares of Rackspace Technology from $2.50 to $4.00 and gave the stock a “sector perform” rating in a research report on Wednesday, June 17th. Wall Street Zen downgraded Rackspace Technology from a “hold” rating to a “sell” rating in a report on Saturday, August 15th. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of Rackspace Technology in a research report on Tuesday, June 2nd. One equities research analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, Rackspace Technology has an average rating of “Reduce” and a consensus target price of $4.00.

Rackspace Technology Price Performance

Rackspace Technology stock opened at $3.13 on Tuesday. The firm has a 50-day moving average of $4.66 and a 200-day moving average of $3.50. Rackspace Technology, Inc. has a one year low of $0.39 and a one year high of $8.60. The company has a market cap of $797.74 million, a price-to-earnings ratio of -4.82 and a beta of 3.05.

Rackspace Technology (NASDAQ:RXT) last announced its quarterly earnings data on Monday, August 10th. The company reported ($0.08) earnings per share for the quarter, beating the consensus estimate of ($0.09) by $0.01. The company had revenue of $670.10 million during the quarter, compared to the consensus estimate of $646.00 million. As a group, sell-side analysts expect that Rackspace Technology, Inc. will post -0.28 earnings per share for the current year.

Key Stories Impacting Rackspace Technology

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

• Neutral Sentiment: The numerous August 30–31 announcements largely repeat the same lawsuit information rather than introduce a new operational development. Investors who purchased RXT securities between May 7 and July 8, 2026, have until September 28, 2026, to seek lead-plaintiff status. Rackspace Technology Securities Fraud Class Action Lawsuit Filed
• Negative Sentiment: The pending class action alleges that Rackspace and certain executives violated federal securities laws by making materially misleading statements or omitting information concerning the company’s AI initiative. The allegations have not been proven, but the case adds legal, financial and reputational risk. Rackspace Technology AI Effort Issues Lead to 33% Stock Drop
• Negative Sentiment: The repeated alerts from Rosen, Faruqi & Faruqi, Kaplan Fox, Glancy Prongay Wolke & Rotter, Levi & Korsinsky and other firms increase the visibility of the litigation and may weigh on investor sentiment. Potential outcomes include defense costs, settlement expenses and continued uncertainty around management’s AI-related disclosures. Rosen Rackspace Investor Deadline Alert

Insider Buying and Selling

In other news, Director Anthony Scott sold 48,780 shares of the stock in a transaction that occurred on Friday, August 14th. The stock was sold at an average price of $4.25, for a total value of $207,315.00. Following the completion of the sale, the director owned 180,215 shares of the company’s stock, valued at approximately $765,913.75. This represents a 21.30% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CFO Mark A. Marino sold 48,099 shares of the firm’s stock in a transaction on Thursday, June 4th. The shares were sold at an average price of $5.56, for a total transaction of $267,430.44. Following the completion of the transaction, the chief financial officer directly owned 3,370,431 shares of the company’s stock, valued at $18,739,596.36. This represents a 1.41% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 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 company insiders.

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.