Koushik Srini, President of Technology at Rackspace Technology, Inc. (NASDAQ:RXT), sold shares of the company's common stock valued at approximately $20,391. The transaction took place on December 3, 2024, with shares sold at a weighted average price of $2.54 per share. According to InvestingPro data, RXT shares have shown remarkable performance, delivering an 81.7% return over the past year despite the company's WEAK financial health score. The sale was executed under a Rule 10b5-1 trading plan, which was established to cover tax withholding obligations related to the vesting of restricted stock units. Following the transaction, Srini holds 1,018,251 shares of Rackspace Technology. With a beta of 2.0 and significant price volatility, InvestingPro subscribers can access 10+ additional exclusive insights and detailed insider trading analysis in the comprehensive Pro Research Report, helping investors make more informed decisions about this $586M market cap company.
In other recent news, Rackspace Technology has been performing strongly, with BMO Capital Markets maintaining its Market Perform rating and raising the target price for the company's shares to $3.50. This adjustment comes after Rackspace's recent quarterly performance, which met revenue expectations and showed a significant increase in margins. The company's Private Cloud services and Public Cloud division are experiencing growth, with the latter showing consecutive growth for the past three quarters.
Rackspace's financial results for the third quarter of 2024 exceeded its revenue, profit, and earnings per share guidance for the ninth consecutive quarter. The company reported GAAP revenue of $676 million and non-GAAP operating profit of $34 million. Rackspace's Private Cloud GAAP revenue was $258 million, while Public Cloud revenue was $418 million.
The company is expecting a 30% year-over-year revenue increase in its healthcare Private Cloud business for fiscal 2024. For the fourth quarter, Rackspace anticipates GAAP revenue to be between $668 million and $680 million, and non-GAAP operating profit to be between $34 million and $36 million. These are recent developments that highlight Rackspace's ongoing success and future potential.
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