Investors Sell Shares of Rackspace Hosting Inc. (RAX) on Strength (RAX)
Traders sold shares of Rackspace Hosting Inc. (NYSE:RAX) on strength during trading on Friday. $127.24 million flowed into the stock on the tick-up and $286.70 million flowed out of the stock on the tick-down, for a money net flow of $159.46 million out of the stock. Of all companies tracked, Rackspace Hosting had the 0th highest net out-flow for the day. Rackspace Hosting traded up $1.31 for the day and closed at $31.50
RAX has been the subject of a number of recent analyst reports. Raymond James Financial Inc. cut Rackspace Hosting from a “strong-buy” rating to an “outperform” rating and lowered their price objective for the stock from $28.00 to $25.00 in a research report on Tuesday, May 10th. Morgan Stanley reissued an “equal weight” rating and issued a $26.00 price objective on shares of Rackspace Hosting in a research report on Tuesday, May 10th. Credit Suisse Group AG restated a “neutral” rating and issued a $20.00 target price on shares of Rackspace Hosting in a research note on Tuesday, May 10th. Jefferies Group restated a “hold” rating and issued a $21.00 target price on shares of Rackspace Hosting in a research note on Tuesday, May 10th. Finally, Wells Fargo & Co. restated an “outperform” rating on shares of Rackspace Hosting in a research note on Tuesday, May 10th. One analyst has rated the stock with a sell rating, sixteen have assigned a hold rating and seven have assigned a buy rating to the company’s stock. The stock has an average rating of “Hold” and a consensus target price of $27.97.
The firm has a 50-day moving average of $25.81 and a 200 day moving average of $23.12. The company has a market cap of $3.96 billion and a price-to-earnings ratio of 27.73.
Rackspace Hosting (NYSE:RAX) last announced its earnings results on Monday, August 8th. The hosting company reported $0.38 earnings per share for the quarter, topping the consensus estimate of $0.22 by $0.16. The business had revenue of $489.40 million for the quarter, compared to analyst estimates of $521.07 million. Rackspace Hosting’s quarterly revenue was up 7.0% on a year-over-year basis. During the same quarter last year, the company posted $0.20 EPS. On average, equities analysts predict that Rackspace Hosting Inc. will post $1.07 earnings per share for the current year.
An institutional investor recently raised its position in Rackspace Hosting stock. KBC Group NV raised its stake in Rackspace Hosting Inc. (NYSE:RAX) by 768.1% during the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 166,109 shares of the hosting company’s stock after buying an additional 146,974 shares during the period. KBC Group NV owned approximately 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.