Royal Bank Of Canada Forecasts Strong Price Appreciation for Rackspace Technology (NASDAQ:RXT) Stock

Rackspace Technology (NASDAQ:RXT) had its price objective increased by research analysts at Royal Bank Of Canada from $1.75 to $2.50 in a research report issued to clients and investors on Friday,Benzinga reports. The firm currently has a “sector perform” rating on the stock. Royal Bank Of Canada’s target price would suggest a potential upside of 30.55% from the stock’s current price.

Separately, Weiss Ratings restated a “sell (d-)” rating on shares of Rackspace Technology in a research report on Thursday, January 22nd. Four investment analysts have rated the stock with a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of “Reduce” and a consensus price target of $1.70.

Rackspace Technology Stock Down 16.0%

RXT traded down $0.37 during trading hours on Friday, hitting $1.92. The stock had a trading volume of 41,452,177 shares, compared to its average volume of 31,072,783. The company’s fifty day simple moving average is $0.90 and its 200 day simple moving average is $1.16. Rackspace Technology has a 1 year low of $0.39 and a 1 year high of $2.49. The stock has a market cap of $466.47 million, a PE ratio of -1.77 and a beta of 2.18.

Insider Activity

In other Rackspace Technology news, EVP Dharmendra Kumar Sinha sold 59,322 shares of Rackspace Technology stock in a transaction that occurred on Monday, December 1st. The shares were sold at an average price of $1.01, for a total transaction of $59,915.22. Following the completion of the sale, the executive vice president directly owned 2,509,573 shares in the company, valued at $2,534,668.73. The trade was a 2.31% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO Mark A. Marino sold 234,683 shares of the business’s stock in a transaction that occurred on Monday, February 23rd. The stock was sold at an average price of $1.63, for a total transaction of $382,533.29. Following the completion of the transaction, the chief financial officer directly owned 2,193,115 shares of the company’s stock, valued at approximately $3,574,777.45. This represents a 9.67% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 2.90% of the company’s stock.

Institutional Trading of Rackspace Technology

Several hedge funds have recently added to or reduced their stakes in the business. Janus Henderson Group PLC grew its stake in shares of Rackspace Technology by 70.7% during the fourth quarter. Janus Henderson Group PLC now owns 1,050,353 shares of the company’s stock valued at $1,020,000 after buying an additional 435,113 shares during the last quarter. Bridgeway Capital Management LLC lifted its position in Rackspace Technology by 34.6% in the fourth quarter. Bridgeway Capital Management LLC now owns 350,000 shares of the company’s stock valued at $340,000 after purchasing an additional 90,000 shares during the last quarter. Jump Financial LLC purchased a new stake in shares of Rackspace Technology during the fourth quarter valued at approximately $34,000. Wells Fargo & Company MN boosted its stake in shares of Rackspace Technology by 13.4% during the fourth quarter. Wells Fargo & Company MN now owns 244,939 shares of the company’s stock valued at $238,000 after purchasing an additional 28,885 shares during the period. Finally, Federated Hermes Inc. grew its holdings in shares of Rackspace Technology by 4.4% in the fourth quarter. Federated Hermes Inc. now owns 719,747 shares of the company’s stock worth $699,000 after purchasing an additional 30,024 shares during the last quarter. 82.48% of the stock is owned by institutional investors.

Key Rackspace Technology News

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

• Positive Sentiment: Rackspace highlighted an expanded role hosting Palantir AI platforms and is positioning around AI demand — a strategic win that could increase higher‑margin services and customer stickiness. Does Rackspace’s New Role Hosting Palantir AI Platforms Change The Bull Case For RXT?
• Positive Sentiment: Management set a target for ~6% private cloud revenue growth in 2026 as AI demand accelerates — a clear growth objective for a core segment that could support margin improvement if execution follows. Rackspace outlines 6% private cloud revenue growth target for 2026 as AI demand accelerates
• Neutral Sentiment: Revenue for Q4 came in roughly in line/slightly above Street expectations ($683M vs ~$672.6M consensus), driven by public cloud strength (+6% YoY in Q4), which offsets weakness in private cloud. Rackspace Technology Reports Fourth Quarter and Full-Year 2025 Results
• Neutral Sentiment: Company published Q4 slide deck and prepared remarks (useful for modeling trends and margin commentary); analysts and investors will parse the call for signs of margin leverage and AI services uptake. View Press Release / Slide Deck
• Neutral Sentiment: Some outlets reported a large intraday pop (one report cited a ~68% move) after initial Q4 reaction — indicates volatility and divergent intraday positioning but not a lasting resolution of fundamentals. Rackspace Technology (RXT) Shares Skyrocket 68% After Beating Q4 Expectations
• Negative Sentiment: RXT missed on EPS in Q4 (reported ($0.13) vs. ($0.04) expected), signaling near‑term profitability pressure and weakening investor confidence in near-term earnings power. MarketBeat Q4 earnings summary
• Negative Sentiment: Management issued FY2026 guidance that is notably below consensus: EPS guide of -$0.20 to -$0.15 vs. consensus ~-0.03 and revenue guide of ~$2.6–2.7B slightly under Street expectations — the guidance miss is the primary negative catalyst for the stock decline. What’s Going On With Rackspace Stock Friday?
• Negative Sentiment: Short interest rose sharply (~41% increase month-over-month, ~5.5% of float), which can amplify downside pressure and volatility if sentiment remains negative. (data aggregated from recent short interest reports)

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.