SAN ANTONIO—Brian Lillie, EVP and President of Private Cloud at Rackspace Technology, Inc. (NASDAQ:RXT), recently sold 20,165 shares of the company’s common stock. The transactions, executed over a period from December 3 to December 5, 2024, were carried out at prices ranging from $2.44 to $2.67 per share. The total value of the sale amounted to $51,219, with a weighted average sale price of $2.54 per share.
These sales were made under a Rule 10b5-1 trading plan, which Lillie adopted on September 15, 2023. This plan facilitates the automatic sale of shares to cover tax withholding obligations related to the vesting of restricted stock units. Following this transaction, Lillie's direct ownership in Rackspace Technology stands at 1,987,623 shares, which includes the acquisition of 500 shares through the company's Employee Stock Purchase Plan on November 15, 2024. With a market capitalization of $586 million and currently trading near its Fair Value according to InvestingPro analysis, the company faces challenges with its financial health, carrying significant debt and showing volatile price movements. For deeper insights into RXT's financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
In other recent news, Rackspace Technology reported robust financial results for the third quarter of 2024, outperforming its revenue, profit, and earnings per share (EPS) guidance for the ninth consecutive quarter. The company's GAAP revenue was $676 million, with its non-GAAP operating profit reaching $34 million. The Private Cloud segment of Rackspace achieved GAAP revenue of $258 million, while Public Cloud revenue stood at $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. This revision follows Rackspace's recent quarterly performance, which met revenue expectations and showed a significant increase in margins. The company's bookings, particularly in the Public Cloud division, exhibited positive trends, marking consecutive growth for the past three quarters.
Rackspace's Private Cloud services reported growth quarter over quarter for the first time in several years, indicating potential for revenue improvements in fiscal year 2025 compared to fiscal year 2024. The company also anticipates a 30% year-over-year revenue increase in its healthcare Private Cloud business for fiscal 2024. According to Rackspace's projections, Q4 GAAP revenue is expected to range between $668 million and $680 million, with non-GAAP operating profit predicted to be between $34 million and $36 million. These are recent developments that underline the company's ongoing success and future potential.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.