Traders Buy Rackspace Hosting Inc. (RAX) on Weakness
Traders bought shares of Rackspace Hosting Inc. (NYSE:RAX) on weakness during trading hours on Monday. $46.07 million flowed into the stock on the tick-up and $32.53 million flowed out of the stock on the tick-down, for a money net flow of $13.54 million into the stock. Of all equities tracked, Rackspace Hosting had the 3rd highest net in-flow for the day. Rackspace Hosting traded down ($0.04) for the day and closed at $31.46
A number of brokerages have commented on RAX. Tigress Financial cut Rackspace Hosting from a “strong-buy” rating to a “neutral” rating in a report on Monday. Jefferies Group increased their price target on Rackspace Hosting from $23.00 to $32.00 and gave the stock a “hold” rating in a research note on Monday. Wells Fargo & Co. lowered Rackspace Hosting from an “outperform” rating to a “market perform” rating in a research note on Monday. Cowen and Company lowered Rackspace Hosting from an “outperform” rating to a “market perform” rating and reduced their price target for the stock from $38.00 to $32.00 in a research note on Friday. Finally, Needham & Company LLC reissued a “hold” rating on shares of Rackspace Hosting in a research note on Friday. One analyst has rated the stock with a sell rating, eighteen have given a hold rating and six have assigned a buy rating to the company. The company has a consensus rating of “Hold” and a consensus target price of $28.25.
The company has a 50-day moving average price of $26.08 and a 200-day moving average price of $23.32. The stock has a market capitalization of $3.96 billion and a price-to-earnings ratio of 27.69.
Rackspace Hosting (NYSE:RAX) last posted its earnings results on Monday, August 8th. The hosting company reported $0.38 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.22 by $0.16. The firm earned $489.40 million during the quarter, compared to analyst estimates of $521.07 million. During the same quarter last year, the business posted $0.20 earnings per share. The company’s revenue for the quarter was up 7.0% on a year-over-year basis. Analysts anticipate that Rackspace Hosting Inc. will post $1.07 EPS for the current fiscal year.
An institutional investor recently raised its position in Rackspace Hosting stock. KBC Group NV raised its position in shares of Rackspace Hosting Inc. (NYSE:RAX) by 768.1% during the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 166,109 shares of the hosting company’s stock after buying an additional 146,974 shares during the period. KBC Group NV owned 0.12% of Rackspace Hosting worth $4,206,000 at the end of the most recent reporting period.
Rackspace Hosting, Inc (Rackspace) operates in the managed cloud segment of the business information technology (IT) market. The Company offers a portfolio of integrated IT solutions for common business needs. The Company offers services for certain applications, including e-commerce and Web content management sites, business-productivity applications, such as e-mail and collaboration, and data stores.
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