Rackspace Technology (NASDAQ:RXT) Stock Sees Heavy Call Option Buying

Rackspace Technology, Inc. (NASDAQ:RXT) saw unusually large options trading activity on Wednesday. Traders acquired 12,728 call options on the company. This is an increase of 52% compared to the typical daily volume of 8,352 call options.

Trending Headlines about Rackspace Technology

These are some of the RXT headlines that stood out recently:

• Positive Sentiment: Q3 results beat expectations and guidance was raised. Rackspace reported a loss of $0.06 per share, versus the $0.08 loss analysts expected, and revenue of $609.1 million, above the $574.0 million consensus. Its updated FY2026 outlook calls for a loss of $0.30–$0.25 per share and revenue of $2.5–$2.6 billion. Rackspace Technology Reports Third Quarter 2026 Results
• Positive Sentiment: New agreements support Rackspace’s AI and infrastructure growth strategy. Together AI plans to use Rackspace-operated NVIDIA GB300 NVL72 infrastructure for enterprise AI inference. Separately, Rackspace signed a multiyear Blacksmith agreement for dedicated AMD-powered compute and about 2 MW of storage capacity in Northern Virginia, expected to begin deploying in early 2027. Rackspace and Together AI Announce Strategic Agreement Blacksmith Taps Rackspace
• Neutral Sentiment: A short-interest report stated that short interest was zero shares, despite describing it as a large increase. The conflicting description makes the figure difficult to interpret. Rackspace Technology Raises Earnings Guidance

Insider Activity

In other news, Director Anthony Scott sold 48,780 shares of Rackspace Technology stock in a transaction on Friday, August 14th. The stock was sold at an average price of $4.25, for a total transaction of $207,315.00. Following the completion of the sale, the director directly owned 180,215 shares in the company, valued at approximately $765,913.75. This trade represents a 21.30% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Dharmendra Sinha sold 107,002 shares of the company’s stock in a transaction dated Wednesday, September 2nd. The stock was sold at an average price of $2.95, for a total transaction of $315,655.90. Following the completion of the transaction, the executive vice president owned 3,263,429 shares in the company, valued at $9,627,115.55. This represents a 3.17% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 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 sold 714,141 shares of company stock worth $2,299,799 in the last ninety days. 2.30% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Rackspace Technology

Institutional investors and hedge funds have recently made changes to their positions in the stock. Independent Advisor Alliance purchased a new position in shares of Rackspace Technology in the third quarter worth about $189,000. Voya Investment Management LLC increased its holdings in Rackspace Technology by 27.9% in the 3rd quarter. Voya Investment Management LLC now owns 22,175 shares of the company’s stock worth $83,000 after buying an additional 4,843 shares during the period. Rock Creek Group LLC raised its position in Rackspace Technology by 50.0% during the 3rd quarter. Rock Creek Group LLC now owns 225,000 shares of the company’s stock worth $838,000 after buying an additional 75,000 shares during the last quarter. Russell Investments Group Ltd. lifted its stake in Rackspace Technology by 8.7% during the 3rd quarter. Russell Investments Group Ltd. now owns 61,491 shares of the company’s stock valued at $229,000 after acquiring an additional 4,904 shares during the period. Finally, StoneX Group Inc. purchased a new stake in shares of Rackspace Technology in the 3rd quarter valued at $105,000. 82.48% of the stock is currently owned by institutional investors and hedge funds.

Rackspace Technology Price Performance

Rackspace Technology stock traded up $0.51 during midday trading on Wednesday, reaching $3.19. The company’s stock had a trading volume of 6,219,970 shares, compared to its average volume of 17,160,145. The stock’s 50-day simple moving average is $3.30 and its 200-day simple moving average is $3.26. Rackspace Technology has a 52-week low of $0.39 and a 52-week high of $8.60. The stock has a market capitalization of $811.76 million, a P/E ratio of -5.47 and a beta of 3.29.

Rackspace Technology (NASDAQ:RXT) last issued its quarterly earnings results on Monday, November 9th. The company reported ($0.06) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.08) by $0.02. The business had revenue of $609.10 million for the quarter, compared to analysts’ expectations of $573.96 million. As a group, equities research analysts expect that Rackspace Technology will post -0.28 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on the company. Wall Street Zen lowered Rackspace Technology from a “hold” rating to a “sell” rating in a research report on Saturday, August 15th. Weiss Ratings restated a “sell (d-)” rating on shares of Rackspace Technology in a report on Friday, August 28th. One 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.

About Rackspace Technology

Rackspace Technology, Inc. (NASDAQ: RXT) provides multicloud technology services to businesses and public-sector organizations. Its offerings include cloud strategy and migration, infrastructure management, application modernization, data services, and cybersecurity. The company helps customers operate workloads across public cloud platforms, including Amazon Web Services, Microsoft Azure, and Google Cloud, as well as private and hybrid cloud environments. Its services include consulting and ongoing support tailored to customers’ technology needs.