Rackspace Technology Sees Unusually Large Options Volume (NASDAQ:RXT)

Rackspace Technology, Inc. (NASDAQ:RXT) was the target of unusually large options trading activity on Wednesday. Investors acquired 12,728 call options on the stock. This represents an increase of approximately 52% compared to the typical volume of 8,352 call options.

Latest Rackspace Technology News

These are some of the RXT news items that stood out recently:

• Positive Sentiment: Rackspace announced an agreement with Together AI to deliver enterprise AI inference using NVIDIA GB300 NVL72 infrastructure operated by Rackspace. The deal positions the company to participate in demand for AI computing, though no financial terms were disclosed. Rackspace and Together AI Announce Strategic Agreement to Support Enterprise AI Inference
• Neutral Sentiment: Call-option volume was about 52% above its average on Wednesday. This may indicate increased bullish speculation, but options activity alone does not establish a change in the company’s outlook.
• Neutral Sentiment: A report described a large increase in short interest but listed short interest as zero shares as of November 10, making the figures difficult to reconcile and not providing clear evidence of short-covering support.

Rackspace Technology Price Performance

Shares of RXT stock opened at $3.13 on Thursday. The business’s fifty day moving average price is $3.31 and its 200 day moving average price is $3.27. Rackspace Technology has a 1-year low of $0.39 and a 1-year high of $8.60. The firm has a market capitalization of $797.75 million, a PE ratio of -5.40 and a beta of 3.29.

Rackspace Technology (NASDAQ:RXT) last released its earnings results on Monday, November 9th. The company reported ($0.06) EPS for the quarter, beating analysts’ consensus estimates of ($0.08) by $0.02. The business had revenue of $609.10 million during the quarter, compared to analyst estimates of $573.96 million. Equities research analysts expect that Rackspace Technology will post -0.28 earnings per share for the current fiscal year.

Insider Buying and Selling at Rackspace Technology

In related news, CEO Gajakarnan Kandiah sold 498,728 shares of the firm’s stock in a transaction dated Friday, September 4th. The stock was sold at an average price of $3.21, for a total transaction of $1,600,916.88. Following the transaction, the chief executive officer owned 3,684,955 shares of the company’s stock, valued at $11,828,705.55. This trade represents a 11.92% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. 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. Also, CFO Mark Marino sold 51,373 shares of the firm’s stock in a transaction dated Wednesday, September 2nd. The stock was sold at an average price of $2.95, for a total value of $151,550.35. Following the transaction, the chief financial officer directly owned 2,865,853 shares in the company, valued at approximately $8,454,266.35. This represents a 1.76% decrease in their position. 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. Insiders have sold a total of 714,141 shares of company stock worth $2,299,799 over the last three months. 2.30% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Independent Advisor Alliance acquired a new stake in shares of Rackspace Technology during the 3rd quarter valued at approximately $189,000. Voya Investment Management LLC grew its holdings in shares of 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 acquiring an additional 4,843 shares during the period. Rock Creek Group LLC increased its stake in Rackspace Technology by 50.0% in the 3rd quarter. Rock Creek Group LLC now owns 225,000 shares of the company’s stock valued at $838,000 after purchasing an additional 75,000 shares in the last quarter. Russell Investments Group Ltd. increased its stake in Rackspace Technology by 8.7% in the 3rd quarter. Russell Investments Group Ltd. now owns 61,491 shares of the company’s stock valued at $229,000 after purchasing an additional 4,904 shares in the last quarter. Finally, StoneX Group Inc. purchased a new position in Rackspace Technology in the 3rd quarter valued at approximately $105,000. 82.48% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of equities analysts recently weighed in on the stock. Weiss Ratings reiterated a “sell (d-)” rating on shares of Rackspace Technology in a research report on Friday, August 28th. Wall Street Zen cut shares of Rackspace Technology from a “hold” rating to a “sell” rating in a research note on Saturday, August 15th. One analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of “Reduce” and an average price target of $4.00.

Rackspace Technology Company Profile

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.