SAN ANTONIO—Kellie Teal-Guess, the Chief Human Resources Officer at Rackspace Technology, Inc. (NASDAQ:RXT), recently sold 6,993 shares of common stock in a series of transactions. The shares were sold at prices ranging from $2.44 to $2.67, with a weighted average sale price of $2.54, amounting to a total value of approximately $17,762. The transaction comes as Rackspace stock shows significant volatility with a beta of 2.0, though it has posted an impressive 81.69% return over the past year. According to InvestingPro analysis, the company currently maintains a market capitalization of $586 million.
This sale was part of a pre-arranged trading plan under Rule 10b5-1, designed to cover tax obligations related to the vesting of restricted stock units. Following the transaction, Teal-Guess retains direct ownership of 889,228 shares, which include an acquisition of 500 shares through the company's Employee Stock Purchase Plan in mid-November. InvestingPro data reveals that Rackspace currently operates with a WEAK financial health score, with 8 additional key insights available to subscribers through the comprehensive Pro Research Report.
In other recent news, Rackspace Technology has reported strong financial results for the third quarter of 2024, surpassing its revenue, profit, and earnings per share (EPS) 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. The company is expecting a 30% year-over-year revenue increase in its healthcare Private Cloud business for fiscal 2024.
On the analyst front, BMO Capital Markets maintained its Market Perform rating on shares of Rackspace Technology Inc (NASDAQ:RXT). but increased the price target to $3.50 from the previous $2.50. This adjustment follows Rackspace's recent quarterly performance, which aligned with revenue expectations and demonstrated a notable increase in margins. Rackspace's bookings, especially in the Public Cloud division, showed positive trends, with consecutive growth for the past three quarters, a promising sign for the company's future revenue trajectory.
Looking ahead, Rackspace anticipates Q4 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, 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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