Investors Buy Rackspace Hosting Inc. (RAX) on Weakness
Investors bought shares of Rackspace Hosting Inc. (NYSE:RAX) on weakness during trading on Tuesday. $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 stocks tracked, Rackspace Hosting had the 30th highest net in-flow for the day. Rackspace Hosting traded down ($0.04) for the day and closed at $31.46
RAX has been the subject of several research analyst reports. Zacks Investment Research cut shares of Rackspace Hosting from a “hold” rating to a “sell” rating in a research report on Wednesday, July 20th. Jefferies Group raised their target price on shares of Rackspace Hosting from $23.00 to $32.00 and gave the stock a “hold” rating in a research report on Monday. Raymond James Financial Inc. cut shares of Rackspace Hosting from a “market perform” rating to an “underperform” rating and set a $32.00 target price for the company. in a research report on Tuesday. Vetr cut shares of Rackspace Hosting from a “strong-buy” rating to a “buy” rating and set a $24.00 target price for the company. in a research report on Monday, July 11th. Finally, William Blair cut shares of Rackspace Hosting from an “outperform” rating to a “market perform” rating in a research report on Friday, August 26th. Two investment analysts have rated the stock with a sell rating, eighteen have given a hold rating and five have given a buy rating to the company. The company has a consensus rating of “Hold” and a consensus price target of $28.64.
The firm’s 50-day moving average is $26.34 and its 200 day moving average is $23.42. The stock has a market cap of $3.96 billion and a price-to-earnings ratio of 27.69.
Rackspace Hosting (NYSE:RAX) last released its quarterly earnings results on Monday, August 8th. The hosting company reported $0.38 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.22 by $0.16. During the same period in the previous year, the company posted $0.20 earnings per share. The firm had revenue of $489.40 million for the quarter, compared to analysts’ expectations of $521.07 million. The business’s quarterly revenue was up 7.0% compared to the same quarter last year. On average, analysts forecast that Rackspace Hosting Inc. will post $1.07 EPS for the current fiscal year.
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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