Despite Hitting US$0.61, Rackspace Technology Insiders Still Sold Too Soon

Rackspace Technology, Inc.'s (NASDAQ:RXT) value has fallen 20% in the last week, but insiders who sold US$57k worth of stock over the last year have had less success. Insiders would probably have been better off holding on to their shares given that the average selling price of US$1.43 is still lower than the current share price.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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The Last 12 Months Of Insider Transactions At Rackspace Technology

The Independent Director, Anthony Scott, made the biggest insider sale in the last 12 months. That single transaction was for US$57k worth of shares at a price of US$1.43 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$0.61). So it may not shed much light on insider confidence at current levels. Anthony Scott was the only individual insider to sell over the last year.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for Rackspace Technology

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Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that Rackspace Technology insiders own about US$5.2m worth of shares (which is 3.5% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Do The Rackspace Technology Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. We don't take much encouragement from the transactions by Rackspace Technology insiders. And usually insiders own more stock in the company, according to our data. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Our analysis shows 2 warning signs for Rackspace Technology (1 is concerning!) and we strongly recommend you look at these before investing.

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.

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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.