Rackspace Technology, Inc. (NASDAQ:RXT) Sees Large Increase in Short Interest

Rackspace Technology, Inc. (NASDAQ:RXT) was the recipient of a large increase in short interest in the month of February. As of February 27th, there was short interest totaling 21,649,986 shares, an increase of 67.9% from the February 12th total of 12,895,212 shares. Based on an average trading volume of 123,755,259 shares, the short-interest ratio is currently 0.2 days. Approximately 9.2% of the shares of the stock are sold short. Approximately 9.2% of the shares of the stock are sold short. Based on an average trading volume of 123,755,259 shares, the short-interest ratio is currently 0.2 days.

Rackspace Technology Trading Up 3.7%

NASDAQ:RXT traded up $0.07 during mid-day trading on Friday, hitting $1.81. 3,498,176 shares of the company’s stock were exchanged, compared to its average volume of 28,766,467. Rackspace Technology has a fifty-two week low of $0.39 and a fifty-two week high of $2.74. The firm has a market capitalization of $445.67 million, a P/E ratio of -1.90 and a beta of 1.80. The company has a 50 day simple moving average of $1.12 and a 200-day simple moving average of $1.23.

Rackspace Technology (NASDAQ:RXT) last released its quarterly earnings results on Thursday, February 26th. The company reported ($0.01) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.04) by $0.03. The business had revenue of $682.80 million for the quarter, compared to the consensus estimate of $672.56 million. Rackspace Technology has set its FY 2026 guidance at -0.200–0.15 EPS.

Wall Street Analyst Weigh In

Several brokerages have commented on RXT. Royal Bank Of Canada boosted their price objective on shares of Rackspace Technology from $1.75 to $2.50 and gave the company a “sector perform” rating in a research report on Friday, February 27th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Rackspace Technology in a research note on Thursday, January 22nd. Four analysts have rated the stock with a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat, Rackspace Technology presently has an average rating of “Reduce” and a consensus price target of $1.70.

Insiders Place Their Bets

In related news, EVP Dharmendra Kumar Sinha sold 45,393 shares of the firm’s stock in a transaction on Monday, March 2nd. The stock was sold at an average price of $1.81, for a total value of $82,161.33. Following the transaction, the executive vice president owned 2,464,180 shares in the company, valued at approximately $4,460,165.80. This trade represents a 1.81% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Mark A. Marino sold 234,683 shares of the 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 sale, the chief financial officer owned 2,193,115 shares in the company, valued at $3,574,777.45. The trade was a 9.67% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 300,259 shares of company stock worth $501,226 in the last 90 days. 2.90% of the stock is owned by company insiders.

Institutional Investors Weigh In On Rackspace Technology

A number of institutional investors have recently made changes to their positions in RXT. R Squared Ltd increased 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 valued at $35,000 after buying an additional 10,707 shares during the period. Engineers Gate Manager LP boosted its holdings 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 acquiring an additional 11,141 shares during the last quarter. Alliancebernstein L.P. increased its position in Rackspace Technology by 4.0% during the 3rd quarter. Alliancebernstein L.P. now owns 290,750 shares of the company’s stock valued at $410,000 after purchasing an additional 11,300 shares during the period. Creative Planning increased its position 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 during the period. Finally, Intech Investment Management LLC raised its holdings in Rackspace Technology by 45.4% during the 2nd quarter. Intech Investment Management LLC now owns 51,692 shares of the company’s stock worth $66,000 after purchasing an additional 16,152 shares during the last quarter. Institutional investors own 82.48% of the company’s stock.

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.