Zacks Investment Research upgraded shares of Rackspace Hosting Inc. (NYSE:RAX) from a hold rating to a buy rating in a research note issued to investors on Tuesday morning. Zacks Investment Research currently has $36.00 target price 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 research analysts also recently issued reports on RAX. Vetr upgraded shares of Rackspace Hosting from a sell rating to a hold rating and set a $24.00 price objective for the company in a research note on Monday, June 13th. SunTrust Banks Inc. started coverage on shares of Rackspace Hosting in a research note on Thursday, July 21st. They set a neutral rating and a $25.00 price objective for the company. FBN Securities boosted their price objective on shares of Rackspace Hosting from $21.00 to $26.00 and gave the stock a sector perform rating in a research note on Tuesday, August 9th. Royal Bank Of Canada boosted their price objective on shares of Rackspace Hosting from $26.00 to $33.00 and gave the stock an outperform rating in a research note on Wednesday, August 10th. Finally, Jefferies Group reiterated a hold rating and set a $23.00 price objective on shares of Rackspace Hosting in a research note on Wednesday, August 10th. Two research analysts have rated the stock with a sell rating, eighteen have assigned a hold rating and five have given a buy rating to the stock. The stock presently has an average rating of Hold and an average target price of $29.03.
Rackspace Hosting (NYSE:RAX) opened at 31.81 on Tuesday. The company has a 50 day moving average of $31.54 and a 200-day moving average of $25.76. Rackspace Hosting has a 52-week low of $15.05 and a 52-week high of $32.14. The stock has a market capitalization of $4.00 billion, a P/E ratio of 28.00 and a beta of 1.67.
Rackspace Hosting (NYSE:RAX) last released its quarterly earnings data on Monday, August 8th. The hosting company reported $0.38 earnings per share (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 the consensus estimate of $521.07 million. During the same period in the previous year, the firm earned $0.20 earnings per share. Rackspace Hosting’s revenue for the quarter was up 7.0% on a year-over-year basis. Equities research analysts anticipate that Rackspace Hosting will post $1.07 EPS for the current year.
A number of institutional investors have recently made changes to their positions in the stock. Advisory Services Network LLC raised its position 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 worth $112,000 after buying an additional 500 shares in the last quarter. LS Investment Advisors LLC raised its position in shares of 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. raised its position in shares of 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. bought a new position in shares of Rackspace Hosting during the second quarter worth about $148,000. Finally, CHICAGO TRUST Co NA bought a new position in shares of Rackspace Hosting during the third quarter worth about $284,000. Hedge funds and other 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.