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Kellie Teal-Guess, the Chief Human Resources Officer at Rackspace Technology, Inc. (NASDAQ:RXT), recently sold shares of the company’s common stock. According to a filing with the Securities and Exchange Commission, Teal-Guess sold a total of 5,412 shares on March 3, 2025. The shares were sold at an average price of $2.37, generating approximately $12,826. The transaction comes as the company, currently valued at around $509 million, faces challenging market conditions. According to InvestingPro analysis, RXT’s stock has shown significant volatility, with the price currently trading below its Fair Value.
The transaction was part of a "sell to cover" arrangement, intended to satisfy tax withholding obligations linked to the vesting of restricted stock units. This sale was executed under a Rule 10b5-1 trading plan, which had been established in September 2023. The plan allows for automatic sales to cover tax liabilities when restricted stock units vest. For deeper insights into RXT’s financial health and additional ProTips, including debt analysis and profitability metrics, check out the comprehensive research report available on InvestingPro.
Following the transaction, Teal-Guess retains ownership of 883,816 shares of Rackspace Technology. The company’s stock has shown resilience with a 14% gain over the past year, despite operating with challenging fundamentals.
In other recent news, Rackspace Technology reported its fourth-quarter earnings, showing better-than-expected results. The company posted an adjusted earnings per share of -$0.02, surpassing analyst estimates of -$0.04. Revenue for the quarter was $685.6 million, exceeding the consensus forecast of $674.98 million, although this marked a 5% year-over-year decline from $720 million in the previous year. Rackspace’s private cloud revenue decreased by 6% year-over-year to $269 million, and public cloud revenue fell by 4% to $417 million. For the full year 2024, total revenue dropped 7% to $2.74 billion.
Despite these results, Rackspace’s guidance for the first quarter of 2025 was in line with analyst expectations, forecasting revenue between $653 million and $665 million and an adjusted EPS between -$0.07 and -$0.09. These figures align closely with the consensus estimate of $659.6 million for revenue and -$0.08 for EPS. CEO Amar Maletira noted record-breaking quarterly sales bookings, the highest since the company’s business units were established. However, investors seemed concerned about the continued revenue declines across business segments, as reflected in the share price movement. As of December 31, 2024, Rackspace reported cash and cash equivalents of $144 million, with no outstanding balance on its $375 million revolving credit facility.
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