Rackspace Technology (NASDAQ:RXT) Issues Quarterly Earnings Results, Hits Estimates

Rackspace Technology (NASDAQ:RXT) released its quarterly earnings results on Thursday. The company reported ($0.05) earnings per share for the quarter, hitting the consensus estimate of ($0.05), FiscalAI reports. The firm had revenue of $671.20 million for the quarter, compared to analysts’ expectations of $666.83 million. The firm’s revenue for the quarter was down .7% compared to the same quarter last year. During the same quarter last year, the firm posted ($0.04) earnings per share. Rackspace Technology updated its Q4 2025 guidance to -0.050–0.030 EPS.

Rackspace Technology Stock Performance

NASDAQ:RXT traded down $0.22 during trading hours on Friday, reaching $1.24. The stock had a trading volume of 2,194,245 shares, compared to its average volume of 1,103,633. The stock has a market cap of $296.81 million, a P/E ratio of -1.15 and a beta of 2.07. The stock has a 50 day simple moving average of $1.47 and a 200 day simple moving average of $1.35. Rackspace Technology has a 12-month low of $1.00 and a 12-month high of $3.41.

Insider Buying and Selling at Rackspace Technology

In other news, Director Anthony Scott sold 40,000 shares of the stock in a transaction on Monday, September 8th. The stock was sold at an average price of $1.43, for a total transaction of $57,200.00. Following the completion of the transaction, the director owned 191,045 shares in the company, valued at approximately $273,194.35. This represents a 17.31% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Amar Maletira sold 1,780,619 shares of the business’s stock in a transaction dated Monday, September 15th. The shares were sold at an average price of $1.35, for a total value of $2,403,835.65. Following the completion of the sale, the chief executive officer owned 4,608,619 shares in the company, valued at $6,221,635.65. This represents a 27.87% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 2.90% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the business. AQR Capital Management LLC raised its holdings in Rackspace Technology by 228.6% during the 1st quarter. AQR Capital Management LLC now owns 264,565 shares of the company’s stock valued at $447,000 after acquiring an additional 184,058 shares during the period. Ameriprise Financial Inc. boosted its holdings in shares of Rackspace Technology by 9.4% in the second quarter. Ameriprise Financial Inc. now owns 387,182 shares of the company’s stock worth $496,000 after acquiring an additional 33,356 shares during the period. Raymond James Financial Inc. grew its position in shares of Rackspace Technology by 15.1% in the second quarter. Raymond James Financial Inc. now owns 443,090 shares of the company’s stock valued at $567,000 after purchasing an additional 58,180 shares in the last quarter. JPMorgan Chase & Co. raised its stake in shares of Rackspace Technology by 25.5% during the 2nd quarter. JPMorgan Chase & Co. now owns 1,437,879 shares of the company’s stock valued at $1,840,000 after purchasing an additional 292,249 shares during the period. Finally, Geode Capital Management LLC lifted its holdings in Rackspace Technology by 17.9% during the 2nd quarter. Geode Capital Management LLC now owns 2,064,549 shares of the company’s stock worth $2,643,000 after purchasing an additional 313,636 shares in the last quarter. 82.48% of the stock is owned by institutional investors.

Analyst Ratings Changes

A number of equities analysts have recently weighed in on the company. Wall Street Zen upgraded Rackspace Technology from a “sell” rating to a “hold” rating in a research note on Saturday, September 20th. BMO Capital Markets cut their price objective on Rackspace Technology from $1.75 to $1.40 and set a “market perform” rating on the stock in a research report on Tuesday, August 12th. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Rackspace Technology in a research report on Wednesday, October 8th. Four research analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Reduce” and a consensus target price of $1.58.

About Rackspace Technology

Rackspace Technology, Inc operates as a multi cloud technology services company in the Americas, Europe, the Middle East, Africa, and The Asia-Pacific region. It operates through three segments: Multicloud Services, Apps & Cross Platform, and OpenStack Public Cloud. The company provides public and private cloud managed services, which allow customers to determine, manage, and optimize the right infrastructure, platforms, and services; professional services related to designing and building multi cloud solutions and cloud-native applications; and managed hosting and colocation services.