Rackspace Technology shares fall 8.1% amid AI infrastructure push
- Rackspace Technology shares closed at $2.7650 on Friday, November 13.
- Trading volume was 688,863 shares, significantly below the average session volume.
- The company reported a quarterly loss of $0.06 per share, beating analyst estimates.
- CEO Gajakarnan Kandiah and EVP Dharmendra Sinha sold shares in September to cover taxes.
- Rackspace is partnering with AMD and Palantir to advance AI infrastructure.
Rackspace Technology shares dropped 8.1% during midday trading on the Nasdaq on Friday, 13 November 2026, reaching a low of $2.77 and last trading at $2.7650. MarketBeat reported that trading volume for the session was approximately 688,863 shares.
Quarterly earnings beat expectations despite market challenges
Rackspace Technology reported financial results for the quarter ending 9 November 2026, showing a loss of $0.06 per share. This result beat the consensus estimate of a $0.08 loss per share.
The company reported revenue of $609.10 million for the same quarter, exceeding the analyst estimate of $573.96 million.
Analysts maintain reduce rating with $4.00 price target
Research analysts maintain a consensus rating of "Reduce" for Rackspace Technology with a consensus price target of $4.00, based on one Hold rating and one Sell rating.
Its 50-day moving average is $3.31, while its 200-day moving average is $3.28. Analysts predict the company will post earnings of -0.28 per share for the current fiscal year.
Company executives sell shares to cover tax obligations
Following this sale, he held 3,684,955 shares, representing an 11.92% decrease in his ownership.
EVP Dharmendra Sinha sold 107,002 shares on 2 September 2026 at an average price of $2.95, totalling $315,655.90, also to cover tax obligations. Following this transaction, he held 3,263,429 shares, a 3.17% decrease in his position.
MarketBeat reports that company insiders have sold 665,361 shares of stock worth $2,092,484 over the last three months, and currently own 2.30% of the company.
Institutional investors hold 82.48% of company stock
Hedge funds and other institutional investors currently own 82.48% of the stock in Rackspace Technology. BlackRock Inc. purchased a new position in the company during the second quarter worth $51,411,000.
In the third quarter, CenterBook Partners LP acquired a new position valued at $7,330,000. Janus Henderson Group PLC increased its holdings by 179.7% in the first quarter, now owning 2,937,670 shares valued at $2,878,000.
Renaissance Technologies LLC increased its stake by 14.0% in the first quarter, now owning 2,041,600 shares valued at $2,000,000.
Rackspace builds AI infrastructure stack with AMD and Palantir
Rackspace Technology is currently building a governed artificial intelligence infrastructure stack. The company has secured partnerships with AMD and Palantir to shift artificial intelligence from lab demonstrations to production-grade value.
It provides multicloud technology services including cloud strategy, migration, infrastructure management, application modernisation, data services, and cybersecurity.
Jason Rogers continues engineering work at Rackspace
Jason Rogers is employed as an engineer at Rackspace Technology.
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