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SAN ANTONIO—Rackspace Technology, Inc. (NASDAQ:RXT) CEO Amar Maletira sold 38,355 shares of the company’s common stock on March 3, 2025. The shares were sold at an average price of $2.37, totaling approximately $90,901.
The transaction was part of a "sell to cover" arrangement designed to satisfy tax withholding obligations related to the vesting of restricted stock units previously granted to Maletira. This sale was executed under a Rule 10b5-1 trading plan, which provides for automatic sales to cover such obligations. The stock has shown considerable volatility with a beta of 2.05, and currently trades below InvestingPro’s calculated Fair Value.
Following this transaction, Maletira holds 4,890,168 shares of Rackspace Technology. The sales were carried out in multiple trades, with prices ranging from $2.31 to $2.41. For deeper insights into RXT’s valuation and 10+ additional ProTips, visit InvestingPro, where you’ll find comprehensive analysis in our Pro Research Report.
In other recent news, Rackspace Technology, Inc. reported its fourth-quarter results, surpassing analyst expectations. The company posted adjusted earnings per share of -$0.02, beating the anticipated -$0.04. Revenue for the quarter reached $685.6 million, exceeding the consensus forecast of $674.98 million, although this marked a 5% decline from the previous year’s $720 million. Private cloud revenue fell 6% year-over-year to $269 million, while public cloud revenue decreased 4% to $417 million. For the full year 2024, Rackspace’s total revenue dropped 7% to $2.74 billion.
Looking ahead, Rackspace provided guidance for the first quarter of 2025 with projected revenue between $653 million and $665 million, aligning closely with the analyst estimate of $659.6 million. The company also forecasted adjusted EPS to be between -$0.07 and -$0.09, consistent with the -$0.08 analyst estimate. Despite the earnings beat, investors seemed focused on the continued revenue declines, which led to a decrease in the company’s shares. Rackspace ended the year with $144 million in cash and cash equivalents, and no outstanding balance on its $375 million revolving credit facility.
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