Rackspace® the #1 managed cloud company, today announced that its chairman, Graham Weston, purchased Rackspace stock worth $2.5 million, and filed a 10b5-1 trading plan to purchase up to $2.5 million more over the next year, as part of his individual investment strategy. The initial $2.5 million purchase was made on the open market on November 18, 2014, at an average price of $42.752 per share for 58,480 shares.
Weston stated, “My willingness to invest in Rackspace expresses my belief in the company’s future. I believe we can be the trusted partner to the rising wave of businesses who need help managing their cloud. One reason for my belief is the strong traction that Rackspace has demonstrated. I’m also confident in the leadership of our new CEO, Taylor Rhodes, and in his commitment to delivering Fanatical Support to our customers.”
Rule 10b5-1 permits the implementation of written, prearranged stock trading plans by insiders when the insiders are not in possession of material non-public information and allows the insiders to trade in accordance with their trading plans, regardless of any subsequent material non-public information they receive. Mr. Weston will report transactions made pursuant to his plan to the Securities and Exchange Commission as required pursuant to Rule 16(b) of the Exchange Act. Except as required by law, Rackspace does not undertake to report Rule 10b5-1 trading plans by other Rackspace officers or directors or to report modifications, transactions or other activities under Rule 10b5-1 trading plans or the similar plans of any other officer or director.
Rackspace (NYSE: RAX) is the #1 managed cloud company. Its technical expertise and Fanatical Support® allow companies to tap the power of the cloud without the pain of hiring experts in dozens of complex technologies.