Rackspace Hosting Inc. (RAX) Cut to Hold at Zacks Investment Research
According to Zacks, “As the world’s leader and specialist in hosting, Rackspace Hosting is changing the way businesses worldwide buy IT. Rackspace delivers computing-as-a-service, integrating the industry’s best technologies into a flexible service offering, making computing more reliable and affordable. A trusted partner to companies of all sizes, Rackspace enables IT departments to be more effective. Rackspace is distinguished by its award-winning Fanatical Support, furthering the company’s mission to be one of the world’s greatest service companies. Rackspace featured in the top 30 of both the Sunday Times 100 Best companies to work for list and the Financial Times Great Place to Work Awards, 2008. Rackspace’s portfolio of hosted services includes managed hosting, email hosting and cloud hosting “
Other equities research analysts have also recently issued reports about the stock. Vetr upgraded shares of Rackspace Hosting from a buy rating to a strong-buy rating and set a $24.00 price target on the stock in a research report on Monday, June 27th. FBN Securities boosted their price target on shares of Rackspace Hosting from $21.00 to $26.00 and gave the stock a sector perform rating in a research report on Tuesday, August 9th. RBC Capital Markets restated an outperform rating and set a $33.00 price objective (up previously from $26.00) on shares of Rackspace Hosting in a report on Thursday, August 11th. SunTrust Banks Inc. began coverage on Rackspace Hosting in a report on Thursday, July 21st. They set a neutral rating and a $25.00 price objective on the stock. Finally, Wells Fargo & Co. downgraded Rackspace Hosting from an outperform rating to a market perform rating in a report on Monday, August 29th. Two equities research analysts have rated the stock with a sell rating, eighteen have issued a hold rating and five have given a buy rating to the stock. The stock has an average rating of Hold and a consensus target price of $29.03.
Shares of Rackspace Hosting (NYSE:RAX) opened at 31.80 on Wednesday. The company has a 50 day moving average of $31.59 and a 200 day moving average of $25.98. The firm has a market capitalization of $4.00 billion, a PE ratio of 27.99 and a beta of 1.66. Rackspace Hosting has a 52-week low of $15.05 and a 52-week high of $32.14.
Rackspace Hosting (NYSE:RAX) last issued its quarterly earnings results on Monday, August 8th. The hosting company reported $0.38 EPS for the quarter, topping the consensus estimate of $0.22 by $0.16. Rackspace Hosting had a net margin of 7.39% and a return on equity of 16.80%. The firm had revenue of $489.40 million for the quarter, compared to analysts’ expectations of $521.07 million. During the same period in the previous year, the business earned $0.20 earnings per share. Rackspace Hosting’s revenue for the quarter was up 7.0% compared to the same quarter last year. On average, analysts anticipate that Rackspace Hosting will post $1.07 earnings per share for the current fiscal year.
Several hedge funds and other institutional investors have recently modified their holdings of RAX. Her Majesty the Queen in Right of the Province of Alberta as represented by Alberta Investment Management Corp acquired a new position in shares of Rackspace Hosting during the second quarter worth approximately $317,000. State Street Corp raised its position in shares of Rackspace Hosting by 1.1% in the first quarter. State Street Corp now owns 3,170,689 shares of the hosting company’s stock worth $68,456,000 after buying an additional 33,179 shares during the last quarter. HBK Investments L P raised its position in shares of Rackspace Hosting by 28.7% in the first quarter. HBK Investments L P now owns 754,942 shares of the hosting company’s stock worth $16,299,000 after buying an additional 168,491 shares during the last quarter. UBS Group AG raised its position in shares of Rackspace Hosting by 2.6% in the first quarter. UBS Group AG now owns 105,394 shares of the hosting company’s stock worth $2,276,000 after buying an additional 2,676 shares during the last quarter. Finally, Geode Capital Management LLC raised its position in shares of Rackspace Hosting by 6.0% in the first quarter. Geode Capital Management LLC now owns 712,067 shares of the hosting company’s stock worth $15,372,000 after buying an additional 40,219 shares during the last quarter. Institutional investors own 83.62% of the company’s stock.
About Rackspace Hosting
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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