Stock Traders Buy Large Volume of Call Options on Rackspace Technology (NASDAQ:RXT)

Rackspace Technology, Inc. (NASDAQ:RXT) was the target of unusually large options trading activity on Thursday. Stock traders bought 23,438 call options on the stock. This represents an increase of 35% compared to the typical daily volume of 17,408 call options.

Insider Activity at Rackspace Technology

In related news, CFO Mark A. Marino sold 48,099 shares of Rackspace Technology stock in a transaction that occurred 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 transaction, the chief financial officer directly owned 3,370,431 shares in the company, valued at $18,739,596.36. The trade was a 1.41% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 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 corporate insiders.

Institutional Investors Weigh In On Rackspace Technology

Several large investors have recently made changes to their positions in RXT. Abel Hall LLC purchased a new stake in Rackspace Technology during the 1st quarter worth approximately $30,000. Creative Planning boosted its stake 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 acquiring an additional 13,708 shares during the last quarter. SG Americas Securities LLC bought a new position in Rackspace Technology during the 1st quarter valued at $34,000. Jump Financial LLC acquired a new position in Rackspace Technology during the 4th quarter worth $34,000. Finally, State of Wyoming bought a new stake in shares of Rackspace Technology in the 1st quarter worth about $35,000. Institutional investors and hedge funds own 82.48% of the company’s stock.

Rackspace Technology Stock Down 26.8%

Shares of RXT stock traded down $1.76 on Thursday, reaching $4.82. 34,601,722 shares of the stock were exchanged, compared to its average volume of 23,618,445. The stock has a market cap of $1.20 billion, a P/E ratio of -7.87 and a beta of 2.99. The firm has a 50 day moving average of $5.29 and a two-hundred day moving average of $2.63. Rackspace Technology has a 1-year low of $0.39 and a 1-year high of $8.60.

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 company had revenue of $678.10 million during the quarter, compared to analysts’ expectations of $660.83 million. Rackspace Technology has set its FY 2026 guidance at -0.200–0.150 EPS.

Analyst Ratings Changes

RXT has been the topic of a number of analyst reports. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Rackspace Technology in a research note on Tuesday, June 2nd. Royal Bank Of Canada upped their target price on shares of Rackspace Technology from $2.50 to $4.00 and gave the company a “sector perform” rating in a report on Wednesday, June 17th. Two investment analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Reduce” and a consensus price target of $2.70.

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.