Rackspace Technology (NASDAQ:RXT) CEO Sells $1,600,916.88 in Stock

11 Sep 2026, 08:22 by Mitch Edgeman · The Markets Daily

Rackspace Technology, Inc. (NASDAQ:RXT – Get Free Report) CEO Gajakarnan Vibushanan Kandiah sold 498,728 shares of the business’s stock in a transaction on Friday, September 4th. The shares were sold at an average price of $3.21, for a total transaction of $1,600,916.88. Following the sale, the chief executive officer owned 3,684,955 shares of the company’s stock, valued at approximately $11,828,705.55. This represents a 11.92% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. 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.

Gajakarnan Vibushanan Kandiah also recently made the following trade(s):

On Wednesday, September 2nd, Gajakarnan Vibushanan Kandiah sold 8,258 shares of Rackspace Technology stock. The stock was sold at an average price of $2.95, for a total value of $24,361.10.

Rackspace Technology Price Performance

Shares of RXT opened at $3.13 on Friday. Rackspace Technology, Inc. has a one year low of $0.39 and a one year high of $8.60. The firm has a market capitalization of $797.74 million, a P/E ratio of -4.82 and a beta of 3.05. The business has a fifty day moving average of $4.13 and a 200 day moving average of $3.64.

Rackspace Technology (NASDAQ:RXT – Get Free Report) last posted its earnings results on Monday, August 10th. The company reported ($0.08) earnings per share for the quarter, beating analysts’ consensus estimates 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. Analysts expect that Rackspace Technology, Inc. will post -0.28 EPS for the current fiscal year.

Key Headlines Impacting 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

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of RXT. Janus Henderson Group PLC grew its position in shares of Rackspace Technology by 179.7% during the first quarter. Janus Henderson Group PLC now owns 2,937,670 shares of the company’s stock worth $2,878,000 after purchasing an additional 1,887,317 shares in the last quarter. Renaissance Technologies LLC lifted its holdings in Rackspace Technology by 14.0% in the 1st quarter. Renaissance Technologies LLC now owns 2,041,600 shares of the company’s stock worth $2,000,000 after purchasing an additional 250,700 shares in the last quarter. GSA Capital Partners LLP bought a new position in Rackspace Technology in the 2nd quarter worth approximately $2,822,000. BlackRock Inc. bought a new position in Rackspace Technology in the 2nd quarter worth approximately $51,411,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. purchased a new stake in Rackspace Technology during the 2nd quarter valued at approximately $3,887,000. Institutional investors own 82.48% of the company’s stock.

Analyst Ratings Changes

Several analysts recently issued reports on the stock. Weiss Ratings restated a “sell (d-)” rating on shares of Rackspace Technology in a research report on Friday, August 28th. Wall Street Zen cut shares of Rackspace Technology from a “hold” rating to a “sell” rating in a research note on Saturday, August 15th. Finally, Royal Bank Of Canada boosted their price objective on shares of Rackspace Technology from $2.50 to $4.00 and gave the company a “sector perform” rating in a research report on Wednesday, June 17th. One investment analyst has rated the stock with a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Reduce” and an average target price of $4.00.

Get Our Latest Analysis on RXT

Rackspace Technology Company Profile

(Get Free Report)

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.