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Dharmendra Kumar Sinha, EVP and President of Public Cloud at Rackspace Technology, Inc. (NASDAQ:RXT), sold 17,480 shares of common stock on March 3, 2025. The shares were sold at a weighted average price of $2.37, resulting in a total transaction value of $41,427. The transaction comes as RXT, currently valued at $508.6 million, operates with a significant debt burden of $3.32 billion and maintains a weak financial health score according to InvestingPro analysis.
This sale was part of a pre-arranged trading plan under Rule 10b5-1, designed to cover tax withholding obligations from the vesting of restricted stock units. Following this transaction, Sinha holds 2,293,829 shares directly. The sale price for these shares varied between $2.31 and $2.41. While the stock shows volatile price movements, InvestingPro analysis suggests RXT is currently undervalued, with 8 additional key insights available to subscribers through their comprehensive Pro Research Report.
In other recent news, Rackspace Technology reported its fourth-quarter earnings, surpassing analyst expectations. The company posted an adjusted earnings per share of -$0.02, beating the anticipated -$0.04, and reported revenue of $685.6 million, which exceeded the forecast of $674.98 million. Despite these results, revenue saw a 5% decline year-over-year, with private cloud revenue falling 6% and public cloud revenue decreasing by 4%. For the full year 2024, Rackspace’s total revenue dropped 7% to $2.74 billion.
CEO Amar Maletira highlighted record-breaking quarterly sales bookings, yet the company’s guidance for the first quarter of 2025 aligned closely with analyst expectations. Rackspace forecasts revenue between $653 million and $665 million, with an adjusted EPS of -$0.07 to -$0.09. Analysts had estimated revenue at $659.6 million and EPS at -$0.08. Despite the earnings beat, the continued decline in revenue across segments drew investor concern. Rackspace reported cash and cash equivalents of $144 million at the end of 2024, with no outstanding balance on its revolving credit facility.
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