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SAN ANTONIO—Rackspace Technology, Inc. (NASDAQ:RXT), a cloud computing company with a market capitalization of $538.2 million, saw its Chief Financial Officer Mark Marino recently sell shares of the company’s common stock, according to a filing with the Securities and Exchange Commission. The transactions took place over several days, from January 27 to January 29, 2025, involving a total of 14,458 shares sold at prices ranging from $2.27 to $2.57 per share. The total value of these sales amounted to $33,831. According to InvestingPro data, the stock has experienced significant volatility, declining nearly 8% in the past week.
The sale was executed under a Rule 10b5-1 trading plan, which Marino adopted on September 12, 2023. This plan allows for the automatic sale of shares to cover tax withholding obligations associated with the vesting of restricted stock units previously granted to him.
Following these transactions, Marino retains direct ownership of 1,915,356 shares of Rackspace Technology.
In other recent news, Rackspace Technology has been making significant strides in its operations and financial performance. The company has reported strong financial results, with GAAP revenue of $676 million, and the Private Cloud and Public Cloud divisions generating $258 million and $418 million respectively. Despite some challenges, such as a gross profit margin of 21% and significant debt levels, the company has managed to achieve record-breaking quarterly sales bookings in the fourth quarter of 2024.
Rackspace Technology has also been active in its strategic partnerships. The company has entered into a Memorandum of Understanding (MOU) with Dubai Health to explore the establishment of a Digital Hub. This hub aims to integrate cloud and artificial intelligence technologies to enhance healthcare solutions and operational efficiency.
In terms of management, Rackspace Technology has undergone significant changes, with Jeffrey Benjamin taking over as the Independent (LON:IOG) Chairman of the Board and Vikram Mahidhar joining the board. Additionally, CEO Amar Maletira will temporarily lead the Private Cloud business following the departure of Brian Lillie, the President of Private Cloud.
Analysts have been monitoring these developments closely. BMO Capital Markets, for example, has maintained a Market Perform rating for Rackspace Technology while raising its price target to $3.50. The company’s future projections anticipate Q4 GAAP revenue to be between $668 million and $680 million, and non-GAAP operating profit to be between $34 million and $36 million. Furthermore, Rackspace expects significant growth in the healthcare sector, with potential high double-digit growth in fiscal 2025. These are all recent developments that have been shaping the trajectory of Rackspace Technology.
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