Investors who take an interest in Rackspace Technology, Inc. (NASDAQ:RXT) should definitely note that the Independent Lead Director, Shashank Samant, recently paid US$4.55 per share to buy US$455k worth of the stock. We reckon that’s a good sign, especially since the purchase boosted their holding by 259%.
The Last 12 Months Of Insider Transactions At Rackspace Technology
Notably, that recent purchase by Shashank Samant is the biggest insider purchase of Rackspace Technology shares that we’ve seen in the last year. That implies that an insider found the current price of US$4.94 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company’s future. If someone buys shares at well below current prices, it’s a good sign on balance, but keep in mind they may no longer see value. Happily, the Rackspace Technology insider decided to buy shares at close to current prices. Shashank Samant was the only individual insider to buy during the last year.
Shashank Samant purchased 119.93k shares over the year. The average price per share was US$4.55. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Rackspace Technology is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
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’s great to see that Rackspace Technology insiders own 11% of the company, worth about US$117m. 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?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Rackspace Technology. That’s what I like to see! While we like knowing 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. For instance, we’ve identified 2 warning signs for Rackspace Technology (1 is significant) you should be aware of.
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.
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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.
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