Rackspace, the managed cloud hosting company, has 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. Weston’s willingness to invest in Rackspace would express his belief in the company’s future.
The initial $2.5 million purchase was made by Graham Weston on the open market on November 18, 2014, at an average price of $42.752 per share for 58,480 shares. Before this purchase, Mr. Weston, also one of the founders of Rackspace, held 13.2 percent of the cloud hosting company’s outstanding common stock.
“My willingness to invest in Rackspace expresses my belief in the company’s future,” said Graham Weston. “I believe we can be the trusted partner to the rising wave of businesses who need help managing their cloud hosting environment. 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.”
Purchases under the 10b5-1 trading plan may commence on the first day of the next Rackspace open trading window, currently scheduled for early to mid-February 2015.
Based in San Antonio, Rackspace serves more than 300,000 business customers from data centers on four continents.