Dharmendra Kumar Sinha, EVP and President of Public Cloud at Rackspace Technology, Inc. (NASDAQ:RXT), has sold 23,357 shares of the company’s common stock. The shares were sold between December 3 and December 5, 2024, at prices ranging from $2.44 to $2.67. The total value of this transaction amounted to $59,326, with a weighted average sale price of $2.54 per share.
This transaction was conducted under a Rule 10b5-1 trading plan, which was set up by Sinha on September 14, 2023. The plan automatically sells shares to cover tax withholding obligations related to the vesting of restricted stock units. Following this sale, Sinha retains ownership of 2,311,309 shares of Rackspace Technology. For deeper insights into insider trading patterns and access to 10+ additional ProTips about RXT, including debt analysis and profitability metrics, consider exploring InvestingPro's comprehensive research reports.
In other recent news, Rackspace Technology delivered strong financial results for the third quarter of 2024, surpassing its revenue, profit, and earnings per share guidance for the ninth consecutive quarter. The company's GAAP revenue was $676 million and its non-GAAP operating profit was $34 million. Rackspace's Private Cloud GAAP revenue reached $258 million, while Public Cloud revenue was $418 million. BMO (TSX:BMO) Capital Markets maintained its Market Perform rating on Rackspace shares but raised the price target to $3.50, following the company's recent performance. The company's Private Cloud services reported growth quarter over quarter for the first time in several years, signaling potential for revenue improvements in fiscal year 2025. In addition, Rackspace's bookings, especially in the Public Cloud division, showed positive trends. Also, the company is expecting a 30% year-over-year revenue increase in its healthcare Private Cloud business for fiscal 2024. For the fourth quarter, Rackspace anticipates GAAP revenue to be between $668 million and $680 million, and non-GAAP operating profit to be between $34 million and $36 million. These are the recent developments that highlight Rackspace's ongoing success and future potential.
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