Wellington Management Group LLP Invests $1.94 Million in Rackspace Technology, Inc. $RXT

Wellington Management Group LLP acquired a new position in shares of Rackspace Technology, Inc. (NASDAQ:RXT) in the 2nd quarter, Holdings Channel reports. The fund acquired 296,344 shares of the company’s stock, valued at approximately $1,935,000.

Other hedge funds have also recently added to or reduced their stakes in the company. Legal & General Group Plc acquired a new stake in Rackspace Technology in the 2nd quarter valued at approximately $58,000. Quantbot Technologies LP acquired a new position in shares of Rackspace Technology during the second quarter worth approximately $63,000. Allworth Financial LP bought a new stake in shares of Rackspace Technology in the second quarter valued at approximately $66,000. Strategic Investment Solutions Inc. IL acquired a new stake in shares of Rackspace Technology in the second quarter worth $67,000. Finally, Wealthcare Advisory Partners LLC acquired a new stake in shares of Rackspace Technology in the second quarter worth $72,000. Institutional investors own 82.48% of the company’s stock.

Insider Buying and Selling at Rackspace Technology

In related news, CEO Gajakarnan Vibushanan Kandiah sold 498,728 shares of the company’s stock in a transaction dated Friday, September 4th. The shares were sold at an average price of $3.21, for a total value of $1,600,916.88. Following the sale, the chief executive officer owned 3,684,955 shares of the company’s stock, valued at $11,828,705.55. The trade was a 11.92% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through 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. Also, Director Anthony Scott sold 48,780 shares of the stock in a transaction dated 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 transaction, the director directly owned 180,215 shares of the company’s stock, valued at $765,913.75. This trade represents a 21.30% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 714,141 shares of company stock worth $2,299,799. Corporate insiders own 2.30% of the company’s stock.

Analysts Set New Price Targets

A number of brokerages recently issued reports on RXT. Wall Street Zen lowered shares of Rackspace Technology from a “hold” rating to a “sell” rating in a research report on Saturday, August 15th. Royal Bank Of Canada raised their price target on shares of Rackspace Technology from $2.50 to $4.00 and gave the stock a “sector perform” rating in a research report on Wednesday, June 17th. Finally, 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 given a Sell rating to the stock. According to data from MarketBeat.com, Rackspace Technology presently has a consensus rating of “Reduce” and an average price target of $4.00.

Trending Headlines about Rackspace Technology

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

• Positive Sentiment: Rackspace announced that it has joined the NVIDIA Cloud Partner Program and will offer Blackwell-powered AI infrastructure for regulated enterprises and governments. The offering combines NVIDIA accelerated computing, Palantir software and Rackspace-managed private cloud, potentially strengthening the company’s position in the growing sovereign-AI market. Rackspace NVIDIA Cloud Partner Program announcement
• Neutral Sentiment: CEO Gajakarnan Vibushanan Kandiah sold 498,728 shares for approximately $1.6 million. The transaction was conducted under a pre-arranged Rule 10b5-1 plan and was intended to cover tax-withholding obligations tied to vested equity awards, making it less indicative of a discretionary loss of confidence. SEC insider transaction filing
• Negative Sentiment: Several law firms publicized a securities class action against Rackspace and urged investors to seek lead-plaintiff status by September 28, 2026. The proposed class covers investors who purchased RXT securities from May 7 through July 8, 2026. Repeated announcements are increasing investor attention on potential legal liabilities. Rackspace securities lawsuit deadline
• Negative Sentiment: The lawsuits allege that Rackspace made material misstatements or omissions about its enterprise AI efforts, including workforce reductions, exits from certain hosting businesses and the subsequent reduction of full-year revenue guidance by $150 million. The allegations have not been proven in court but create an overhang for RXT. Rackspace shareholder lawsuit alert

Rackspace Technology Trading Down 3.4%

RXT opened at $3.13 on Friday. The stock has a market cap of $797.74 million, a PE ratio of -4.82 and a beta of 3.05. Rackspace Technology, Inc. has a 1 year low of $0.39 and a 1 year high of $8.60. The stock’s 50 day simple moving average is $4.13 and its 200-day simple moving average is $3.64.

Rackspace Technology (NASDAQ:RXT) last issued its earnings results on Monday, August 10th. The company reported ($0.08) EPS for the quarter, topping the consensus estimate of ($0.09) by $0.01. The firm had revenue of $670.10 million during the quarter, compared to the consensus estimate of $646.00 million. Equities analysts forecast that Rackspace Technology, Inc. will post -0.28 earnings per share for the current fiscal year.

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.