Rackspace technology CFO sells $527,820 in stock

Published 27/02/2025, 02:54
Rackspace technology CFO sells $527,820 in stock

Rackspace Technology, Inc. (NASDAQ:RXT) Chief Financial Officer Mark A. Marino recently sold a significant portion of the company’s stock, according to a Form 4 filed with the Securities and Exchange Commission. On February 24, 2025, Marino sold 202,230 shares of Rackspace common stock at a weighted average price of $2.61 per share, resulting in a total transaction value of approximately $527,820. The stock, which currently trades at $2.62 and has shown significant volatility with a beta of 2.05, has gained over 26% in the past year despite the company’s weak financial health score according to InvestingPro analysis. This sale was executed under a Rule 10b5-1 trading plan and was intended to cover tax withholding obligations related to the vesting of restricted stock units.

In a separate transaction on February 25, 2024, Marino acquired 376,478 shares of Rackspace common stock at no cost. This acquisition was part of a performance stock unit award, which vested based on the company’s relative total shareholder return performance. Following these transactions, Marino now directly owns 2,089,604 shares of Rackspace stock.

In other recent news, Rackspace Technology, Inc. reported fourth-quarter results that exceeded analyst expectations but still led to a decline in share prices. The company posted an adjusted earnings per share of -$0.02, surpassing the anticipated -$0.04. Revenue for the quarter reached $685.6 million, beating the consensus forecast of $674.98 million, although this marked a 5% decrease from $720 million in the same period last year. For the full year 2024, Rackspace’s total revenue fell by 7% to $2.74 billion. The company also provided first-quarter 2025 guidance, forecasting revenue between $653 million and $665 million, aligning with the analyst consensus of $659.6 million. Adjusted EPS for the upcoming quarter is expected to range between -$0.07 and -$0.09, matching the -$0.08 analyst estimate. Despite these earnings and projections, investors appeared concerned about ongoing revenue declines in both private and public cloud segments. Rackspace ended the year with $144 million in cash and cash equivalents, maintaining no outstanding balance on its $375 million revolving credit facility.

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