Rackspace Technology Inc (RXT) Shares Rise Despite Market Challenges

The stock of Rackspace Technology Inc (NASDAQ: RXT) has increased by 8.71 when compared to last closing price of 1.32. Despite this, the company has experienced a 21.61% gain in its stock price over the last five trading sessions. globenewswire.com reported 2025-05-21 that SAN ANTONIO, May 21, 2025 (GLOBE NEWSWIRE) — Rubrik (NYSE: RBRK), a leading cyber resilience company, and Rackspace Technology (NASDAQ: RXT), a leading end-to-end hybrid cloud and AI solutions company, have announced Rackspace Cyber Recovery Service – a new managed service for customers operating in public cloud. By combining Rubrik’s orchestrated data protection and cyber recovery solutions with Rackspace’s DevOps principles and managed services, enterprises can simplify and accelerate recovery from ransomware attacks.

Is It Worth Investing in Rackspace Technology Inc (NASDAQ: RXT) Right Now?

The 36-month beta value for RXT is at 2.06. Analysts have varying views on the stock, with 0 analysts rating it as a “buy,” 1 rating it as “overweight,” 4 as “hold,” and 0 as “sell.”

The public float for RXT is 61.74M, and currently, shorts hold a 9.50% of that float. The average trading volume for RXT on June 11, 2025 was 950.64K shares.

RXT’s Market Performance

RXT’s stock has seen a 21.61% increase for the week, with a 10.38% rise in the past month and a -31.34% fall in the past quarter. The volatility ratio for the week is 3.80%, and the volatility levels for the past 30 days are at 4.89% for Rackspace Technology Inc The simple moving average for the last 20 days is 20.77% for RXT stock, with a simple moving average of -33.52% for the last 200 days.

Analysts’ Opinion of RXT

UBS, on the other hand, stated in their research note that they expect to see RXT reach a price target of $1.40. The rating they have provided for RXT stocks is “Neutral” according to the report published on November 07th, 2023.

Raymond James gave a rating of “Outperform” to RXT, setting the target price at $3.50 in the report published on September 19th of the previous year.

RXT Trading at 9.56% from the 50-Day Moving Average

After a stumble in the market that brought RXT to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -57.90% of loss for the given period.

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Insider Trading

Reports are indicating that there were more than several insider trading activities at RXT starting from Maletira Amar, who sale 521,840 shares at the price of $1.87 back on Mar 17 ’25. After this action, Maletira Amar now owns 4,368,328 shares of Rackspace Technology Inc, valued at $975,841 using the latest closing price.

Marino Mark A., the Chief Financial Officer of Rackspace Technology Inc, sale 20,217 shares at $1.87 during a trade that took place back on Mar 17 ’25, which means that Marino Mark A. is holding 1,917,446 shares at $37,806 based on the most recent closing price.

Stock Fundamentals for RXT

Current profitability levels for the company are sitting at:

  • -0.11 for the present operating margin
  • 0.19 for the gross margin

The net margin for Rackspace Technology Inc stands at -0.11. The total capital return value is set at -0.13.

Based on Rackspace Technology Inc (RXT), the company’s capital structure generated -0.85 points at debt to capital in total, while cash flow to debt ratio is standing at 0.29. The debt to equity ratio resting at -0.46. The interest coverage ratio of the stock is -8.44.

Currently, EBITDA for the company is -362.9 million with net debt to EBITDA at 4.56. When we switch over and look at the enterprise to sales, we see a ratio of 0.26. The receivables turnover for the company is 10.08for trailing twelve months and the total asset turnover is 0.91. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.79.

Conclusion

In conclusion, Rackspace Technology Inc (RXT) has had a mixed performance lately. Opinion on the stock among analysts is mixed, with some giving it a “buy” rating and others a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.

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