In a recent transaction, Amar Maletira, the Chief Executive Officer of Rackspace Technology, Inc. (NASDAQ:RXT), sold 55,461 shares of the company's common stock. The shares were sold at a weighted average price of $2.54, resulting in a total transaction value of approximately $140,870. The sale comes as RXT's stock has shown remarkable performance, with an 81.69% return over the past year, though InvestingPro data indicates significant volatility in the stock's movements.
This sale was executed under a pre-arranged Rule 10b5-1 trading plan, designed to automatically sell shares to cover tax withholding obligations related to the vesting of restricted stock units. Following this transaction, Maletira retains ownership of 4,928,523 shares in the company. According to InvestingPro analysis, the company currently faces challenges with its financial health, operating with a significant debt burden and current ratio of 0.84. Discover more insights about RXT and 1,400+ other stocks through comprehensive Pro Research Reports, available exclusively with an InvestingPro subscription.
In other recent news, Rackspace Technology has been making significant strides in its financial performance. The company has recently reported surpassing its revenue, profit, and earnings per share (EPS) guidance for the ninth consecutive quarter. Rackspace's GAAP revenue was $676 million, with its Private Cloud and Public Cloud revenues reaching $258 million and $418 million, respectively.
The company is expecting a 30% year-over-year revenue increase in its healthcare Private Cloud business for fiscal 2024. BMO Capital Markets, while maintaining its Market Perform rating, has raised the price target for Rackspace's shares from $2.50 to $3.50, after observing the company's recent quarterly performance and bookings growth.
For the upcoming Q4, Rackspace anticipates its GAAP revenue to be between $668 million and $680 million, and non-GAAP operating profit to be between $34 million and $36 million. The company also expects significant growth in the healthcare sector, possibly high double-digit growth in fiscal 2025. These are recent developments that highlight Rackspace's ongoing success and future potential.
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