Rackspace Technology, Inc.
$5.21
-12%Rackspace Technology, Inc. operates as a multi cloud technology services company worldwide. It operates through Multicloud Services and Apps & Cross Platform segments. The company's Multicloud Services segment provides public and private cloud managed services, which allow customers to determine, manage, and optimize the right infrastructure, platforms, and services; and professional services related to designing and building multi cloud solutions and cloud-native applications. Its Apps & Cross Platform segment includes managed applications; managed security services in the areas of security threat assessment and prevention, threat detection and response, rapid remediation, governance, and risk and compliance assistance across multiple cloud platforms, as well as privacy and data protection services, including detailed access restrictions and reporting; data services; and professional services related to designing and implementing application, security, and data services. Rackspace Technology, Inc. was founded in 1998 and is headquartered in San Antonio, Texas.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
Medium confidenceValuation multiple is compressed (P/E -5.5).
Valuation inputs: P/E -5.5, earnings yield N/A, momentum -12.0%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE +18.5%, ROIC -4.6%).
Profitability stack: net margin -8.4%, ROE +18.5%, ROIC -4.6%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceDownside profile is elevated and scenario stress-testing is essential.
Risk factors: liabilities/assets +143.6%, momentum -12.0%, net margin -8.4%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Rackspace Technology, Inc. Market vs Earnings Trajectory
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Rackspace Technology, Inc. Fair Value Envelope
Rackspace Technology, Inc. Profit Bridge
Profitability Analysis
Gross Margin
Thin margins leave little room for error. Cost management and pricing strategy are critical.
Operating Margin
Operating losses indicate the core business is unprofitable. Requires restructuring or revenue growth.
Net Profit Margin
Net losses indicate the company is burning cash. Sustainability depends on path to profitability.
Rackspace Technology, Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Negative free cash flow despite positive earnings raises concerns about cash generation ability or heavy capital requirements.
CapEx Intensity
Capital-intensive operations require significant reinvestment. Monitor whether CapEx is maintenance or growth-oriented.
FCF Growth Trend
Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.
Working Capital Impact
Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.
Rackspace Technology, Inc. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Warning: Liquidity concerns. Current assets may not be sufficient to cover short-term obligations.
Working Capital
Negative working capital indicates short-term liabilities exceed short-term assets—potential liquidity stress.
Asset Composition
Capital-intensive business with significant long-term investments in property, equipment, or intangibles.
Rackspace Technology, Inc. Street Expectations Map
Wall Street analysts project that RXT stock may see slight declines over the coming 12 months. The consensus 1-year price target stands at 5.00, with estimates ranging from a low of 5.00 to a high of 5.00.
The consensus 1-year price target stands at 5.00, with estimates ranging from a low of 5.00 to a high of 5.00.
Analyst Consensus Analysis
Upside Potential
Fair value territory. Stock trading near consensus target suggests limited near-term catalysts. Focus on fundamental developments.
Analyst Agreement
High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.
Risk-Reward Profile
Balanced risk-reward. Upside and downside potential relatively symmetric. Suitable for moderate risk tolerance with conviction in thesis.
Analyst Conviction
Neutral sentiment. Fair value pricing with moderate agreement suggests wait-and-see approach or catalyst-driven opportunity.
Market Sentiment Insight
Efficient pricing: Stock trading at fair value with strong consensus suggests market has priced in expectations. Look for fundamental inflection points or new catalysts to drive meaningful moves.
Rackspace Technology, Inc. Insider Positioning
During the last 12 months, insiders have sold $4.69M worth of RXT shares, with no buying activity reported.
3 Months
0
0.00
315.4K
945.69K
-946K
-$946K
3-6 Months
0
0.00
321.5K
539.72K
-540K
-$540K
6-9 Months
0
0.00
2.0M
2.63M
-2.6M
-$2.63M
9-12 Months
0
0.00
432.1K
570.02K
-570K
-$570K
Top Buyers
No buying activity
Top Sellers
Maletira Amar
Director, Other: Former Chief Executive Officer
$2.57M
Sinha Dharmendra Kumar
Officer: Evp, President, Public Cloud
$862K
Teal-Guess Kellie
Officer: Chief Human Resources Officer
$658K
Marino Mark A.
Officer: Chief Financial Officer
$468K
Scott Anthony
Director
$57K
Insider Activity Analysis
Net Insider Sentiment
Strong bearish signal with $4.69M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.
Buy/Sell Ratio
Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.
Recent Trend (3 Months)
Heavy recent selling activity. Recent insider sales notably exceed purchases—may warrant investigation into company developments.
Insider Participation
5 insider sellers vs. 0 buyers. Widespread selling across multiple insiders may signal concerns.
Insider Activity Insight
Multiple red flags: Heavy selling, numerous sellers, and continued recent selling create a concerning pattern. Investigate fundamental drivers and consider whether company guidance or industry conditions have deteriorated.
No Dividend Yield Data
RXT has not reported any dividend yield values in the available annual periods.
rxt Dividend History
Learning Layer
Related Guides
Build conviction on RXT by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.