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SAN ANTONIO—Koushik Srini, President of Technology at Rackspace Technology, Inc. (NASDAQ:RXT), recently sold 9,165 shares of the company’s common stock. The transaction, executed on March 3, 2025, was valued at approximately $21,721, with shares sold at a weighted average price of $2.37 each. The stock, currently trading at $2.22, shows signs of being slightly undervalued according to InvestingPro’s Fair Value analysis.
This sale was part of a pre-established Rule 10b5-1 trading plan, which Srini adopted on September 12, 2023. The plan allows for the automatic sale of shares to cover tax withholding obligations related to the vesting of restricted stock units. InvestingPro data reveals the company operates with high volatility and significant debt levels, with a WEAK overall Financial Health Score.
Following this transaction, Srini retains ownership of 1,009,086 shares of Rackspace Technology, representing a significant stake in the company, which currently maintains a market capitalization of approximately $509 million. Discover more insights about RXT and access comprehensive analysis with a InvestingPro subscription, including 10+ additional ProTips and detailed financial metrics.
In other recent news, Rackspace Technology reported its fourth-quarter results, which exceeded analyst expectations. The company announced adjusted earnings per share of -$0.02, surpassing the anticipated -$0.04, while revenue reached $685.6 million, beating the forecast of $674.98 million. Despite these positive results, revenue showed a 5% year-over-year decline from $720 million in the same quarter last year. Rackspace’s private cloud revenue decreased by 6% 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.
Looking ahead, Rackspace provided guidance for the first quarter of 2025, with revenue expected between $653 million and $665 million, aligning with the consensus estimate of $659.6 million. Adjusted EPS is projected to be between -$0.07 and -$0.09, matching the -$0.08 analyst estimate. Despite the earnings beat and in-line guidance, investors seemed concerned about the ongoing revenue declines across the company’s business segments. Rackspace’s CEO, Amar Maletira, noted that the company achieved record-breaking quarterly sales bookings. 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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