We'd be surprised if Rackspace Technology, Inc. (NASDAQ:RXT) shareholders haven't noticed that the President, Amar Maletira, recently sold US$144k worth of stock at US$1.30 per share. However, the silver lining is that the sale only reduced their total holding by 2.3%, so we're hesitant to read anything much into it, on its own.
Check out our latest analysis for Rackspace Technology
The Last 12 Months Of Insider Transactions At Rackspace Technology
In fact, the recent sale by Amar Maletira was the biggest sale of Rackspace Technology shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of US$1.26. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
Over the last year, we can see that insiders have bought 42.28k shares worth US$141k. But they sold 114.19k shares for US$149k. Over the last year we saw more insider selling of Rackspace Technology shares, than buying. The sellers received a price of around US$1.31, on average. It's not particularly great to see insiders were selling shares around current prices. While some insiders have decided to take some money off the table, we wouldn't put too much weight on this fact. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of Rackspace Technology
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Rackspace Technology insiders own 11% of the company, worth about US$32m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Rackspace Technology Insider Transactions Indicate?
Insiders haven't bought Rackspace Technology stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 5 warning signs for Rackspace Technology you should be aware of, and 2 of these shouldn't be ignored.
Of course Rackspace Technology may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.