SAN ANTONIO—Koushik Srini, the Chief Technology Officer of Rackspace Technology, Inc. (NASDAQ:RXT), recently sold shares of the company in a transaction valued at approximately $51,984. This sale, executed on November 29, 2024, involved 19,470 shares of common stock at a weighted average price of $2.67 per share. The transaction comes as the $564 million market cap company has seen its stock deliver a remarkable 66% return over the past year, despite showing volatile price movements according to InvestingPro data.
The transaction was part of a pre-established Rule 10b5-1 trading plan, designed to cover tax obligations arising from the vesting of restricted stock units previously granted to Srini. Following this transaction, Srini retains direct ownership of 1,026,279 shares of Rackspace Technology.
This move is consistent with the CTO's ongoing strategy to manage his equity holdings while fulfilling tax responsibilities. The sales were conducted over multiple trades, with prices ranging from $2.61 to $2.78.
In other recent news, Rackspace Technology has been making waves with its strong financial performance. The company's Q3 2024 results exceeded revenue, profit, and earnings per share (EPS) guidance for the ninth consecutive quarter. Rackspace's GAAP revenue clocked in at $676 million, with a non-GAAP operating profit of $34 million. Notably, the company's Private Cloud and Public Cloud divisions reported revenues of $258 million and $418 million, respectively.
BMO (TSX:BMO) Capital Markets has maintained its Market Perform rating on Rackspace but raised the price target to $3.50, reflecting optimism about the company's financial prospects. This decision follows Rackspace's recent quarterly performance and a promising trend in bookings, especially in the Public Cloud division. However, BMO Capital suggests Rackspace needs to sustain this level of bookings to see a meaningful top-line turnaround.
Rackspace anticipates a 30% year-over-year revenue increase in its healthcare Private Cloud business for fiscal 2024. The company also projects Q4 GAAP revenue to be between $668 million and $680 million, and non-GAAP operating profit to be between $34 million and $36 million. These latest developments highlight Rackspace's ongoing success and potential for future growth.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.