SAN ANTONIO—Anthony C. Roberts, a director at Rackspace Technology, Inc. (NASDAQ:RXT), has acquired 19,455 shares of the company's common stock. The shares were purchased at a price of $2.60 each, totaling approximately $50,583. The purchase comes as the stock has shown significant momentum, delivering a 55% return over the past year despite volatile price movements. Following this transaction, Roberts holds 161,930 shares in the cloud computing services company, currently valued at approximately $400,000. According to InvestingPro analysis, Rackspace Technology operates with a significant debt burden and currently shows a WEAK financial health score. This acquisition highlights ongoing interest and investment in Rackspace Technology by its board members. For deeper insights into RXT's financial health and valuation metrics, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
In other recent news, Rackspace Technology has been in the spotlight with its Q3 financial results surpassing revenue, profit, and earnings per share (EPS) guidance for the ninth consecutive quarter. The company reported GAAP revenue of $676 million and a non-GAAP operating profit of $34 million. Additionally, Rackspace's Private Cloud GAAP revenue reached $258 million, while Public Cloud revenue was $418 million.
BMO Capital Markets maintained its Market Perform rating on Rackspace shares, raising the price target to $3.50 from the previous $2.50, following the company's recent quarterly performance. The company's Private Cloud services experienced growth quarter over quarter for the first time in several years, signaling potential for revenue improvements in fiscal year 2025 compared to fiscal year 2024.
Rackspace is expecting a 30% year-over-year revenue increase in its healthcare Private Cloud business for fiscal 2024. For Q4, the company anticipates GAAP revenue to be between $668 million and $680 million, and non-GAAP operating profit to be between $34 million and $36 million. Lastly, the company also expects significant growth in the healthcare sector, with possible high double-digit growth in fiscal 2025. These are recent developments that highlight the company's ongoing success and future potential.
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