Shares of Rackspace Hosting Inc. (NYSE:RAX) have received a consensus recommendation of “Hold” from the twenty-five brokerages that are currently covering the company. Two research 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 average 1 year price target among brokerages that have issued a report on the stock in the last year is $26.40.
Several research analysts have weighed in on RAX shares. Needham & Company LLC restated a “hold” rating on shares of Rackspace Hosting in a report on Friday, August 26th. Jefferies Group upped their target price on shares of Rackspace Hosting from $23.00 to $32.00 and gave the stock a “hold” rating in a research note on Monday, August 29th. JMP Securities lowered 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. lowered 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 note on Tuesday, August 30th. Finally, Zacks Investment Research lowered shares of Rackspace Hosting from a “hold” rating to a “sell” rating in a research note on Wednesday, July 20th.
Rackspace Hosting (NYSE:RAX) opened at 31.69 on Wednesday. Rackspace Hosting has a one year low of $15.05 and a one year high of $32.14. The company has a 50-day moving average of $30.62 and a 200 day moving average of $25.07. The firm has a market capitalization of $3.99 billion, a price-to-earnings ratio of 27.90 and a beta of 1.59.
Rackspace Hosting (NYSE:RAX) last released its quarterly earnings data on Monday, August 8th. The hosting company reported $0.38 earnings per share for the quarter, topping the Thomson Reuters’ 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 the consensus estimate of $521.07 million. During the same quarter in the prior year, the company posted $0.20 earnings per share. The business’s revenue was up 7.0% on a year-over-year basis. On average, analysts anticipate that Rackspace Hosting will post $1.07 EPS for the current year.
A number of large investors have recently made changes to their positions in RAX. Bank of Montreal Can acquired a new position in Rackspace Hosting during the second quarter valued at approximately $46,435,000. PGGM Investments increased its position in Rackspace Hosting by 653.0% in the second quarter. PGGM Investments now owns 1,375,145 shares of the hosting company’s stock valued at $28,686,000 after buying an additional 1,192,533 shares during the period. Emerald Acquisition Ltd. acquired a new position in Rackspace Hosting during the second quarter valued at approximately $23,593,000. Acadian Asset Management LLC increased its position in Rackspace Hosting by 38.9% in the second quarter. Acadian Asset Management LLC now owns 3,791,560 shares of the hosting company’s stock valued at $79,095,000 after buying an additional 1,062,606 shares during the period. Finally, Highbridge Capital Management LLC acquired a new position in Rackspace Hosting during the second quarter valued at approximately $15,543,000. 83.62% of the stock is currently owned by institutional investors and hedge funds.
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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