Short Interest in Rackspace Technology, Inc. (NASDAQ:RXT) Drops By 34.2%

Rackspace Technology, Inc. (NASDAQ:RXT) was the target of a large decline in short interest in the month of May. As of May 29th, there was short interest totaling 15,351,512 shares, a decline of 34.2% from the May 14th total of 23,342,880 shares. Currently, 6.3% of the shares of the company are short sold. Based on an average daily trading volume, of 23,622,012 shares, the short-interest ratio is presently 0.6 days.

More Rackspace Technology News

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

• Positive Sentiment: Rackspace announced a definitive agreement with AMD for a phased deployment of 30 MW of AMD AI compute capacity across its data-center footprint, boosting sentiment around future revenue opportunities from AI infrastructure. Article Title
• Positive Sentiment: Market coverage highlighted the AMD deal as a key reason the stock has been surging, with investors betting the partnership strengthens Rackspace’s position in AI data-center services. Article Title
• Positive Sentiment: Trading activity spiked sharply, including unusually heavy call-option buying, suggesting traders are positioning for continued upside following the AMD announcement. Article Title
• Neutral Sentiment: Royal Bank of Canada raised its price target on Rackspace to $4.00 from $2.50 but kept a “sector perform” rating, which suggests improving expectations but still implies the shares may be ahead of fundamentals at current levels. Article Title
• Neutral Sentiment: Earlier coverage and management discussion focused on the phased AMD AI compute rollout and GPU-as-a-Service collaboration, reinforcing that the move is a longer-term strategic initiative rather than an immediate revenue jump. Article Title
• Negative Sentiment: RBC’s new $4 price target is still well below the stock’s recent trading level, signaling that some analysts think the rally may have run ahead of near-term valuation. Article Title

Insider Activity at Rackspace Technology

In related news, CFO Mark A. Marino sold 48,099 shares of Rackspace Technology stock in a transaction dated 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 sale, the chief financial officer owned 3,370,431 shares of the company’s stock, valued at approximately $18,739,596.36. The trade was a 1.41% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. 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. Insiders own 2.30% of the company’s stock.

Hedge Funds Weigh In On Rackspace Technology

Hedge funds and other institutional investors have recently made changes to their positions in the company. AEGON USA Investment Management LLC acquired a new position in shares of Rackspace Technology in the 4th quarter valued at approximately $194,000. JPMorgan Chase & Co. raised its position in shares of Rackspace Technology by 1.8% in the 3rd quarter. JPMorgan Chase & Co. now owns 1,464,389 shares of the company’s stock valued at $2,065,000 after buying an additional 26,510 shares in the last quarter. R Squared Ltd raised its position in shares of 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 buying an additional 10,707 shares in the last quarter. Savant Capital LLC acquired a new position in shares of Rackspace Technology in the 3rd quarter valued at approximately $33,000. Finally, Renaissance Technologies LLC increased its position in Rackspace Technology by 14.0% during the 1st quarter. Renaissance Technologies LLC now owns 2,041,600 shares of the company’s stock worth $2,000,000 after purchasing an additional 250,700 shares in the last quarter. 82.48% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

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

Rackspace Technology Trading Up 21.0%

NASDAQ RXT traded up $1.31 during trading on Wednesday, reaching $7.52. The company’s stock had a trading volume of 25,470,706 shares, compared to its average volume of 24,116,377. The firm has a market capitalization of $1.87 billion, a price-to-earnings ratio of -12.27 and a beta of 3.03. Rackspace Technology has a 12 month low of $0.39 and a 12 month high of $7.65. The firm has a 50 day moving average price of $3.58 and a 200 day moving average price of $2.00.

Rackspace Technology (NASDAQ:RXT) last issued its earnings results on Thursday, May 7th. The company reported ($0.06) EPS for the quarter, missing the consensus estimate of ($0.03) by ($0.03). The firm had revenue of $678.10 million for 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. On average, equities analysts forecast that Rackspace Technology will post -0.18 EPS for the current fiscal year.

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.