Insiders of Rackspace Technology, Inc. (NASDAQ:RXT) would have made a tidy sum after selling US$4.1m worth of stock at a high price

Last week, Rackspace Technology, Inc.'s (NASDAQ:RXT) stock jumped 3.1%, but insiders who sold US$4.1m worth of stock in over the past year are likely to be in a better position. Selling at an average price of US$21.00, which is higher than the current price might have been the right call as holding on to stock would have meant their investment would be worth less now than it was at the time of sale.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Rackspace Technology

The Last 12 Months Of Insider Transactions At Rackspace Technology

The Independent Non-Employee Director, Dhiren Fonseca, made the biggest insider sale in the last 12 months. That single transaction was for US$2.5m worth of shares at a price of US$21.25 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$14.43. So it may not tell us anything about how insiders feel about the current share price.

Happily, we note that in the last year insiders paid US$275k for 14.80k shares. But insiders sold 196.80k shares worth US$4.1m. All up, insiders sold more shares in Rackspace Technology than they bought, over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Does Rackspace Technology Boast High Insider Ownership?

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Rackspace Technology insiders own 9.1% of the company, currently worth about US$275m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Rackspace Technology Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. While we feel good about high insider ownership of Rackspace Technology, we can't say the same about the selling of shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Rackspace Technology. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of Rackspace Technology.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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, but not derivative transactions.

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.

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