Zacks Investment Research upgraded shares of Rackspace Hosting Inc. (NYSE:RAX) from a hold rating to a buy rating in a research note released on Tuesday. Zacks Investment Research currently has $36.00 price target on the hosting company’s stock.
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 “
Several other equities analysts have also issued reports on the company. Jefferies Group boosted their price target on Rackspace Hosting from $23.00 to $32.00 and gave the company a hold rating in a research note on Monday, August 29th. Raymond James Financial Inc. lowered Rackspace Hosting from a market perform rating to an underperform rating and set a $32.00 price target on the stock. in a research note on Tuesday, August 30th. Vetr lowered Rackspace Hosting from a strong-buy rating to a buy rating and set a $24.00 price target on the stock. in a research note on Monday, July 11th. Wells Fargo & Co. downgraded Rackspace Hosting from an outperform rating to a market perform rating in a report on Monday, August 29th. Finally, William Blair downgraded Rackspace Hosting from an outperform rating to a market perform rating in a report on Friday, August 26th. Two analysts have rated the stock with a sell rating, eighteen have assigned a hold rating and five have assigned a buy rating to the company. Rackspace Hosting has a consensus rating of Hold and a consensus price target of $29.03.
Shares of Rackspace Hosting (NYSE:RAX) remained flat at $31.78 during trading on Tuesday. 580,448 shares of the company’s stock traded hands. The stock’s 50 day moving average price is $31.30 and its 200 day moving average price is $25.67. Rackspace Hosting has a 52-week low of $15.05 and a 52-week high of $32.14. The firm has a market capitalization of $4.00 billion, a PE ratio of 27.98 and a beta of 1.67.
Rackspace Hosting (NYSE:RAX) last issued its quarterly earnings results on Monday, August 8th. The hosting company reported $0.38 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.22 by $0.16. Rackspace Hosting had a return on equity of 16.80% and a net margin of 7.39%. The firm had revenue of $489.40 million for the quarter, compared to analyst estimates of $521.07 million. During the same period in the previous year, the company posted $0.20 earnings per share. The company’s quarterly revenue was up 7.0% compared to the same quarter last year. On average, equities research analysts predict that Rackspace Hosting will post $1.07 earnings per share for the current year.
Several hedge funds have recently modified their holdings of the stock. Advisory Services Network LLC boosted its stake in shares of Rackspace Hosting by 10.3% in the second quarter. Advisory Services Network LLC now owns 5,361 shares of the hosting company’s stock valued at $112,000 after buying an additional 500 shares during the last quarter. LS Investment Advisors LLC boosted its stake in Rackspace Hosting by 66.2% in the second quarter. LS Investment Advisors LLC now owns 6,426 shares of the hosting company’s stock worth $134,000 after buying an additional 2,559 shares in the last quarter. Advisors Asset Management Inc. boosted its stake in Rackspace Hosting by 20.3% in the second quarter. Advisors Asset Management Inc. now owns 6,553 shares of the hosting company’s stock worth $137,000 after buying an additional 1,107 shares in the last quarter. Pacer Advisors Inc. purchased a new stake in Rackspace Hosting during the second quarter worth approximately $148,000. Finally, Creative Planning boosted its stake in Rackspace Hosting by 24.4% in the second quarter. Creative Planning now owns 9,530 shares of the hosting company’s stock worth $199,000 after buying an additional 1,870 shares in the last quarter. Institutional investors own 83.59% of the company’s stock.
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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