CastleKnight Management LP Sells 775,800 Shares of Rackspace Technology, Inc. $RXT

CastleKnight Management LP lowered its stake in shares of Rackspace Technology, Inc. (NASDAQ:RXT) by 19.7% in the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 3,159,780 shares of the company’s stock after selling 775,800 shares during the quarter. CastleKnight Management LP’s holdings in Rackspace Technology were worth $3,068,000 at the end of the most recent quarter.

Several other institutional investors have also bought and sold shares of RXT. AQR Capital Management LLC grew its holdings in Rackspace Technology by 228.6% during the first quarter. AQR Capital Management LLC now owns 264,565 shares of the company’s stock worth $447,000 after buying an additional 184,058 shares in the last quarter. Dynamic Technology Lab Private Ltd bought a new stake in Rackspace Technology during the first quarter worth $113,000. Geode Capital Management LLC grew its holdings in Rackspace Technology by 17.9% during the second quarter. Geode Capital Management LLC now owns 2,064,549 shares of the company’s stock worth $2,643,000 after buying an additional 313,636 shares in the last quarter. Creative Planning grew its holdings in Rackspace Technology by 114.2% during 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, JPMorgan Chase & Co. grew its holdings in Rackspace Technology by 25.5% during the second quarter. JPMorgan Chase & Co. now owns 1,437,879 shares of the company’s stock worth $1,840,000 after buying an additional 292,249 shares in the last quarter. Institutional investors own 82.48% of the company’s stock.

Rackspace Technology Price Performance

Shares of NASDAQ:RXT opened at $7.53 on Thursday. The company has a market capitalization of $1.88 billion, a PE ratio of -12.34 and a beta of 3.03. The business has a fifty day moving average price of $3.71 and a two-hundred day moving average price of $2.05. Rackspace Technology, Inc. has a 1 year low of $0.39 and a 1 year high of $8.60.

Rackspace Technology (NASDAQ:RXT) last announced its quarterly earnings data on Thursday, May 7th. The company reported ($0.06) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.03) by ($0.03). The business 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. Sell-side analysts anticipate that Rackspace Technology, Inc. will post -0.18 earnings per share for the current year.

Analysts Set New Price Targets

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

Insider Transactions at Rackspace Technology

In other Rackspace Technology news, CFO Mark A. Marino sold 48,099 shares of the company’s stock in a transaction on Thursday, June 4th. The stock was sold at an average price of $5.56, for a total value of $267,430.44. Following the completion of the transaction, the chief financial officer owned 3,370,431 shares in the company, valued at $18,739,596.36. This represents a 1.41% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 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 company insiders.

Rackspace Technology News Roundup

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

• Positive Sentiment: Rackspace’s definitive agreement with AMD to deploy an initial 30 MW of AMD-based AI compute across its global data centers is being viewed as a meaningful growth catalyst, suggesting new enterprise revenue opportunities in AI infrastructure. AMD and Rackspace Technology Sign Definitive Agreement for Phased Deployment of 30 MW of AMD AI Compute
• Positive Sentiment: Market enthusiasm is being reinforced by heavy call-option buying and multiple reports highlighting Rackspace as an AI beneficiary, which points to rising investor momentum and short-covering interest. Rackspace Shares Jump 30% After Securing AMD-Powered AI Infrastructure Agreement (RXT)
• Positive Sentiment: Wall Street sentiment also got a lift when Royal Bank of Canada raised its price target on RXT to $4.00 from $2.50, signaling improved expectations for the company’s outlook even though the new target remains below the current share price. Benzinga report on RBC price target increase
• Neutral Sentiment: Recent commentary has framed Rackspace as a higher-beta AI infrastructure play rather than a legacy managed hosting company, which may support valuation but also leaves the stock vulnerable to sharp swings if execution disappoints. RXT Stock Surges To 4-Year Highs — Wall Street Highlights Multi-Industry Growth Potential After AMD Deal
• Negative Sentiment: Despite the AI optimism, Rackspace still faces financial pressure, including a recent earnings miss, negative margins, and tight liquidity, so the stock’s rally depends heavily on successful execution of the AMD rollout and cost cuts. Rackspace Technology earnings report

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.