Koushik Srini, the President of Technology at Rackspace Technology, recently sold shares of the company’s common stock for approximately $20,391. Despite the company’s weak financial health score, Rackspace shares have shown remarkable performance, delivering an 81.7% return over the past year. The sale was part of a trading plan to cover tax obligations related to restricted stock units, and Srini still holds over a million shares in the company.
In other news, Rackspace Technology has been performing well, with BMO Capital Markets raising the target price for the company’s shares to $3.50. The company’s recent quarterly performance saw revenue meeting expectations and significant margin improvement. Their Private Cloud and Public Cloud services are both experiencing growth, with Public Cloud revenue increasing for the past three quarters.
Rackspace’s financial results for the third quarter of 2024 exceeded expectations, with GAAP revenue at $676 million and non-GAAP operating profit at $34 million. The company is expecting a 30% year-over-year revenue increase in its healthcare Private Cloud business for fiscal 2024, and anticipates strong results for the fourth quarter as well.
These developments highlight Rackspace’s ongoing success and future potential in the market. Investors can access more detailed insights and insider trading analysis through InvestingPro’s Pro Research Report to make informed decisions about this $586 million market cap company.
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