Positioning no disclosures inside 60 days, left as found
Options put/call open interest 1.04, read 2026-10-28
Ethical does not pass the values gate
Price2.83 USD
Fair value3.11
Ethical score70.0/100
Our investment reviews on this name
2026-10-25Read Distribution3.14-10.0% to today ✓Markup gives way to Distribution after a 17% slide in 3 weeks
2026-10-02Read Markup3.80-25.5% to today Distribution gives way to Markup after a 12% rise in 3 weeks
2026-09-12Read Distribution3.38-16.3% to today ✓Markup gives way to Distribution after a 38% slide in 10 weeks
2026-07-02Read Markup5.44-48.0% to today First review on file: Markup
Our analytic regime reads on this name, dated and marked against the screened price. Small sample per name, and separate from the daily-framework accuracy on the Track Record page.
Rackspace Technology, Inc. holds its Distribution at $2.83. The statistical read favours the sellers, held for 51 days.
As held on the ledger · 2026-10-23
Phase
Distribution · caution
Quantitative state
The statistical read favours the sellers, held for 51 days
Price at the screen
$2.83
Valuation
N/A trailing · 27.97 forward price to earnings
Values screen
FAIL· score 70.0
Beta
3.10
The Workings
Five Screens, Shown in Full
Does not pass. Debt ratio
Test
Figure
Limit
What it means
Status
Business activity
Permissible
Core business clean
Its core business isn't built on prohibited lines: no gambling, alcohol, tobacco, weapons, or interest-based lending.
Pass
Debt load
115.89%
Below 33%
Interest-bearing debt is 115.9% of its assets, above the one-third ceiling the screen allows.
Fail
Interest-bearing cash
0.00%
Below 33%
Cash held in interest-bearing accounts and securities is 0.0% of assets, under the one-third limit.
Pass
Receivables
13.30%
Below 49%
Money owed to the company is 13.3% of assets, under the 49% limit.
Pass
Five checks adapted from AAOIFI screening standards: business activity plus four balance-sheet ratios. All five must pass for ethical clearance. Every figure is arithmetic on public accounts, not judgement.
The Ethical Read
Why It Falls Short, in Plain English
Rackspace Technology,'s business is in a permissible area, but its interest-bearing debt is about 116% of the company, well over the ~33% line, so it does not pass on the financial screens.
Read as at 2026-10-28. It updates when the underlying figures move, and past reads are kept below.
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Fair value range in USD, drawn from the 2026-10-23 screen. The gold marker is the market price at the same screen. A 9.9% margin of safety to the base estimate.
Third-party analyst targets: 3 covering, consensus Hold. The average target sits +77% from the screen price.
Reading the gap · Both our model and the analysts see meaningful upside from here.
Price History & Projections
Where it has been, where the models see it going. History from market close data; projection points are our fair-value estimates and third-party analyst targets, dated to the 2026-10-23 screen.
Fair value and rating are our own model estimates; the Street's range reflects third-party analyst estimates. Analysis, not advice.
The Business, in Plain Words
Cloud Firm Trades Above Its Slim Prospects
Picture a mid-tier hotel trying to charge premium rates while guests keep checking out for bigger chains with better tech. Rackspace sits in that spot, offering hybrid cloud and AI tools yet posting just 2% revenue growth and a negative 5% profit margin at a forward P/E of 24.1 times. Our fair value sits at 3.30 against the current 4.15 price, so the margin of safety runs negative 20% and the opportunity rating stays at none.
The business splits between public and private cloud segments but shows no clear moat and draws only a hold rating from three analysts with a 5.00 median target. Ethical screening clears it, yet the combination of thin growth, ongoing losses and stretched valuation leaves little room for upside.
Currency moves or slower enterprise spending could widen the losses further while the price already bakes in hopes the numbers do not support. Analysis, not advice.
The risks · The things to watch: it's a small-cap, so the share price can swing harder than the market; it already moves more than the market on an average day.
Plain-English interpretation of our own screen data. Analysis, not advice.
Where & How to Trade
RXT trades on Nasdaq. As a listed security it is accessible through almost any international broker offering its home market. New to this, or investing from abroad? Our guide to accessing global markets covers brokers, currencies and the practical steps.
The Dated Journal · Newest First, Never Edited
Every Entry, As Written
2026-10-29Distribution$2.83-10.0%Entry 10
The analysis reads distribution. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 10.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it D. Technically it is holding around 16% above its long-term trend line with momentum reading oversold. Over the past year the shares are up 300%. Our forward projection puts the odds of a 10% gain over the next month near 37%. The street (3 analysts) rates it hold, with a mean price target of $4. It reported earnings in this window, a natural checkpoint for the thesis.
2026-10-25Distribution · changed$3.14+0.0%Entry 9
The framework has shifted from markup to distribution since the last review. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it D. Technically it is holding around 33% above its long-term trend line with momentum reading bearish. Over the past year the shares are up 300%. Our forward projection puts the odds of a 10% gain over the next month near 37%. The street (3 analysts) rates it hold, with a mean price target of $4.
2026-10-18Markup$3.14-17.2%Entry 8
The analysis reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 17.2% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it B. Technically it is holding around 211% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 300%. Our forward projection puts the odds of a 10% gain over the next month near 37%. The street (3 analysts) rates it hold, with a mean price target of $4.
2026-10-11Markup$3.80+0.0%Entry 7
The analysis reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it B. Technically it is holding around 211% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 300%. Our forward projection puts the odds of a 10% gain over the next month near 37%. The street (3 analysts) rates it hold, with a mean price target of $4.
2026-10-02Markup · changed$3.80+12.4%Entry 6
The framework has shifted from distribution to markup since the last review. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved up 12.4% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it B. Technically it is holding around 211% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 300%. Our forward projection puts the odds of a 10% gain over the next month near 37%. The street (3 analysts) rates it hold, with a mean price target of $4.
The framework has shifted from markup to distribution since the last review. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 18.6% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it B. Technically it is holding around 211% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 300%. Our forward projection puts the odds of a 10% gain over the next month near 37%. The street (3 analysts) rates it hold, with a mean price target of $4.
2026-08-12Markup$4.15-23.7%Entry 4
Our analysis reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 23.7% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it B. Technically it is holding around 211% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 300%. Our forward projection puts the odds of a 10% gain over the next month near 37%. The street (3 analysts) rates it hold, with a mean price target of $4.
2026-07-18Markup$5.44+0.0%Entry 3
Our analysis reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it B. Technically it is holding around 211% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 300%. Our forward projection puts the odds of a 10% gain over the next month near 37%. The street (3 analysts) rates it hold, with a mean price target of $4.
2026-07-03Markup$5.44+0.0%Entry 2
Our analysis reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen (70). The risk-adjusted return profile shows good risk-adjusted returns.
2026-07-02Markup$5.44Entry 1
Our analysis reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Ethical screening: PASS with passing ethical screen (70). The risk-adjusted return profile shows good risk-adjusted returns.
Each entry above was written on its date, before the outcome. A journal you can prune is not a journal.
