Traders Buy High Volume of Put Options on Rackspace Technology (NASDAQ:RXT)

Rackspace Technology, Inc. (NASDAQ:RXT) was the recipient of some unusual options trading on Wednesday. Stock investors purchased 6,979 put options on the stock. This is an increase of 36% compared to the average volume of 5,116 put options.

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on the company. Weiss Ratings restated a “sell (d-)” rating on shares of Rackspace Technology in a report on Thursday, January 22nd. Royal Bank Of Canada lifted their price target on shares of Rackspace Technology from $1.75 to $2.50 and gave the company a “sector perform” rating in a research report on Friday, February 27th. Four research analysts have rated the stock with a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Reduce” and a consensus price target of $1.70.

Rackspace Technology Trading Down 1.3%

Shares of NASDAQ:RXT traded down $0.03 during mid-day trading on Wednesday, hitting $1.93. 4,993,129 shares of the company traded hands, compared to its average volume of 29,675,531. The stock has a market cap of $475.30 million, a P/E ratio of -2.05 and a beta of 1.80. The stock has a 50-day moving average price of $1.09 and a two-hundred day moving average price of $1.22. Rackspace Technology has a 12-month low of $0.39 and a 12-month high of $2.74.

Rackspace Technology (NASDAQ:RXT) last posted its quarterly earnings data on Thursday, February 26th. The company reported ($0.01) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.04) by $0.03. The firm had revenue of $682.80 million for the quarter, compared to analysts’ expectations of $672.56 million. Rackspace Technology has set its FY 2026 guidance at -0.200–0.15 EPS.

Insider Activity at Rackspace Technology

In other news, CFO Mark A. Marino sold 20,183 shares of the company’s stock in a transaction dated Monday, March 2nd. The shares were sold at an average price of $1.81, for a total transaction of $36,531.23. Following the transaction, the chief financial officer owned 2,172,932 shares in the company, valued at approximately $3,933,006.92. This represents a 0.92% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Dharmendra Kumar Sinha sold 45,393 shares of the firm’s stock in a transaction dated Monday, March 2nd. The shares were sold at an average price of $1.81, for a total value of $82,161.33. Following the completion of the sale, the executive vice president owned 2,464,180 shares of the company’s stock, valued at approximately $4,460,165.80. This represents a 1.81% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 300,259 shares of company stock valued at $501,226. Insiders own 2.90% of the company’s stock.

Institutional Investors Weigh In On Rackspace Technology

Hedge funds have recently added to or reduced their stakes in the stock. R Squared Ltd boosted its stake in Rackspace Technology by 74.3% in the 3rd quarter. R Squared Ltd now owns 25,127 shares of the company’s stock worth $35,000 after purchasing an additional 10,707 shares in the last quarter. Engineers Gate Manager LP increased its stake in Rackspace Technology by 47.1% during the 2nd quarter. Engineers Gate Manager LP now owns 34,777 shares of the company’s stock valued at $45,000 after purchasing an additional 11,141 shares in the last quarter. Alliancebernstein L.P. raised its holdings in Rackspace Technology by 4.0% in the third quarter. Alliancebernstein L.P. now owns 290,750 shares of the company’s stock worth $410,000 after buying an additional 11,300 shares during the last quarter. Creative Planning lifted its stake in shares of Rackspace Technology by 114.2% in the second quarter. Creative Planning now owns 25,715 shares of the company’s stock worth $33,000 after buying an additional 13,708 shares in the last quarter. Finally, Intech Investment Management LLC lifted its stake in shares of Rackspace Technology by 45.4% in the second quarter. Intech Investment Management LLC now owns 51,692 shares of the company’s stock worth $66,000 after buying an additional 16,152 shares in the last quarter. 82.48% of the stock is owned by institutional investors.

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.