Insider Selling: Rackspace Technology (NASDAQ:RXT) CEO Sells 498,728 Shares

Key Points

• Rackspace Technology CEO Gajakarnan Vibushanan Kandiah sold 498,728 shares at an average price of $3.21, generating approximately $1.60 million. The sale, conducted under a Rule 10b5-1 plan, covered tax obligations tied to vested equity awards and reduced his stake by 11.92%.
• Rackspace reported quarterly revenue of $670.1 million and adjusted losses of $0.08 per share, beating analysts’ estimates for both measures. Analysts nevertheless maintain a “Reduce” consensus rating, with an average price target of $4.00.
• RXT opened at $3.19 and has traded between $0.39 and $8.60 over the past year. Institutional investors own approximately 82.48% of the company, with several funds initiating positions during the second quarter.

Rackspace Technology, Inc. (NASDAQ:RXT - Get Free Report) CEO Gajakarnan Vibushanan Kandiah sold 498,728 shares of the company's stock in a transaction on Friday, September 4th. The stock was sold at an average price of $3.21, for a total transaction of $1,600,916.88. Following the completion of the sale, the chief executive officer owned 3,684,955 shares of the company's stock, valued at approximately $11,828,705.55. The trade was a 11.92% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Gajakarnan Vibushanan Kandiah also recently made the following trade(s):

• On Wednesday, September 2nd, Gajakarnan Vibushanan Kandiah sold 8,258 shares of Rackspace Technology stock. The shares were sold at an average price of $2.95, for a total transaction of $24,361.10.

Rackspace Technology Price Performance

Shares of NASDAQ RXT opened at $3.19 on Tuesday. Rackspace Technology, Inc. has a 52 week low of $0.39 and a 52 week high of $8.60. The company has a market cap of $813.04 million, a P/E ratio of -4.91 and a beta of 3.05. The business has a 50-day simple moving average of $4.32 and a two-hundred day simple moving average of $3.60.

Rackspace Technology (NASDAQ:RXT - Get Free Report) last issued its quarterly earnings data on Monday, August 10th. The company reported ($0.08) EPS for the quarter, beating the consensus estimate of ($0.09) by $0.01. The firm had revenue of $670.10 million for the quarter, compared to analysts' expectations of $646.00 million. Equities research analysts anticipate that Rackspace Technology, Inc. will post -0.28 EPS for the current year.

Analyst Ratings Changes

Several analysts have recently weighed in on RXT shares. Royal Bank Of Canada raised their price objective on shares of Rackspace Technology from $2.50 to $4.00 and gave the company a "sector perform" rating in a research report on Wednesday, June 17th. Wall Street Zen lowered shares of Rackspace Technology from a "hold" rating to a "sell" rating in a research report on Saturday, August 15th. Finally, Weiss Ratings reissued a "sell (d-)" rating on shares of Rackspace Technology in a research note on Friday, August 28th. One investment analyst has rated the stock with a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Reduce" and an average price target of $4.00.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of RXT. California State Teachers Retirement System purchased a new position in Rackspace Technology during the 2nd quarter valued at about $51,000. Legal & General Group Plc purchased a new stake in Rackspace Technology in the 2nd quarter worth approximately $58,000. Quantbot Technologies LP bought a new stake in shares of Rackspace Technology in the 2nd quarter worth approximately $63,000. Allworth Financial LP purchased a new position in shares of Rackspace Technology during the second quarter valued at approximately $66,000. Finally, Strategic Investment Solutions Inc. IL purchased a new position in shares of Rackspace Technology during the second quarter valued at approximately $67,000. Hedge funds and other institutional investors own 82.48% of the company's stock.

About Rackspace Technology

Rackspace Technology NASDAQ: RXT is a leading provider of managed multi-cloud solutions and services, specializing in the deployment, management and optimization of public and private cloud environments. The company helps organizations design and operate applications across platforms such as Amazon Web Services (AWS), Microsoft Azure, Google Cloud and its own private cloud infrastructure. Rackspace's core offerings include cloud migration, application modernization, data protection, security services and 24x7x365 operational support.

Beyond cloud hosting, Rackspace offers a range of professional services designed to accelerate digital transformation initiatives.

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