Blue Harbour Group, LP disclosed that they own 7.4% of Rackspace Hosting Inc. (NYSE:RAX) in a Schedule 13D/A disclosure that was filed with the Securities and Exchange Commission on Thursday, October 6th. The investor owns 9,415,277 shares of the stock valued at approximately $298,464,281. The reporting parties listed on the disclosure included Blue Harbour Group, LP, Blue Harbour Holdings, LLC and Clifton S Robbins. The disclosure is available through EDGAR at this hyperlink.
A number of other institutional investors also recently modified their holdings of RAX. Her Majesty the Queen in Right of the Province of Alberta as represented by Alberta Investment Management Corp bought a new position in shares of Rackspace Hosting during the second quarter worth approximately $317,000. State Street Corp increased its position in 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 in the last quarter. HBK Investments L P increased its position in 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 in the last quarter. UBS Group AG increased its position in 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 in the last quarter. Finally, Geode Capital Management LLC increased its position in 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 in the last quarter. Institutional investors and hedge funds own 83.62% of the company’s stock.
Rackspace Hosting Inc. (NYSE:RAX) remained flat at $31.70 during mid-day trading on Thursday. 2,834,596 shares of the company’s stock were exchanged. Rackspace Hosting Inc. has a 12 month low of $15.05 and a 12 month high of $32.14. The firm has a market capitalization of $3.99 billion, a price-to-earnings ratio of 27.90 and a beta of 1.67. The firm has a 50 day moving average of $30.84 and a 200 day moving average of $25.34.
Rackspace Hosting (NYSE:RAX) last posted 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 company earned $489.40 million during the quarter, compared to analysts’ expectations of $521.07 million. During the same quarter in the previous year, the business posted $0.20 EPS. The firm’s revenue was up 7.0% on a year-over-year basis. On average, analysts predict that Rackspace Hosting Inc. will post $1.07 earnings per share for the current fiscal year.
A number of equities analysts have recently issued reports on RAX shares. Needham & Company LLC reiterated a “hold” rating on shares of Rackspace Hosting in a research note on Friday, August 26th. Jefferies Group increased their price objective on shares of Rackspace Hosting from $23.00 to $32.00 and gave the company a “hold” rating in a research note on Monday, August 29th. JMP Securities downgraded shares of Rackspace Hosting from an “outperform” rating to a “market perform” rating in a research note on Friday, August 26th. Raymond James Financial Inc. downgraded shares of Rackspace Hosting from a “market perform” rating to an “underperform” rating and set a $32.00 price objective on the stock. in a research note on Tuesday, August 30th. Finally, Zacks Investment Research downgraded shares of Rackspace Hosting from a “hold” rating to a “sell” rating in a research note on Wednesday, July 20th. Two equities research analysts have rated the stock with a sell rating, eighteen have given a hold rating and five have issued a buy rating to the company. The company presently has a consensus rating of “Hold” and a consensus price target of $28.64.
Rackspace Hosting Company Profile
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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