Rackspace Hosting, Inc. (RAX) Sees Large Volume Increase on Better-Than-Expected Earnings
The hosting company reported $0.34 EPS for the quarter, beating the consensus estimate of $0.22 by $0.12. The company had revenue of $518 million for the quarter, compared to the consensus estimate of $519.08 million. During the same period last year, the company earned $0.20 EPS. The firm's revenue for the quarter was up 7.9% on a year-over-year basis.
Several analysts have recently issued reports on RAX shares. RBC Capital decreased their target price on shares of Rackspace Hosting from $36.00 to $31.00 and set an "outperform" rating on the stock in a research report on Friday, January 15th. Wells Fargo restated an "outperform" rating on shares of Rackspace Hosting in a research report on Monday, March 14th. Cowen and Company restated a "buy" rating and set a $36.00 target price (down from $52.00) on shares of Rackspace Hosting in a research report on Wednesday, February 17th. SunTrust restated a "sector weight" rating on shares of Rackspace Hosting in a research report on Wednesday, February 17th. Finally, Credit Agricole lowered shares of Rackspace Hosting from an "underperform" rating to a "sell" rating and set a $17.00 price objective on the stock. in a research report on Thursday, March 31st. Two investment analysts have rated the stock with a sell rating, twelve have given a hold rating, ten have assigned a buy rating and two have assigned a strong buy rating to the stock. The company has a consensus rating of "Hold" and an average target price of $30.62.
Other hedge funds and institutional investors have recently added to or reduced their stakes in the company. Profund Advisors LLC boosted its position in Rackspace Hosting by 42.8% in the fourth quarter. Profund Advisors LLC now owns 59,364 shares of the hosting company's stock worth $1,503,000 after buying an additional 17,798 shares during the last quarter. Liberty Mutual Group Asset Management Inc. raised its stake in shares of Rackspace Hosting by 43.3% in the fourth quarter. Liberty Mutual Group Asset Management Inc. now owns 73,834 shares of the hosting company's stock valued at $1,871,000 after buying an additional 22,315 shares during the period. Engineers Gate Manager LP raised its stake in shares of Rackspace Hosting by 43.9% in the fourth quarter. Engineers Gate Manager LP now owns 83,125 shares of the hosting company's stock valued at $2,105,000 after buying an additional 25,356 shares during the period. Cornerstone Capital Management Holdi ngs LLC. raised its stake in shares of Rackspace Hosting by 170.7% in the fourth quarter. Cornerstone Capital Management Holdings LLC. now owns 107,429 shares of the hosting company's stock valued at $2,720,000 after buying an additional 67,737 shares during the period. Finally, South Dakota Investment Council raised its stake in shares of Rackspace Hosting by 61.8% in the fourth quarter. South Dakota Investment Council now owns 112,800 shares of the hosting company's stock valued at $2,856,000 after buying an additional 43,100 shares during the period.
The company has a market cap of $3.06 billion and a price-to-earnings ratio of 25.99. The stock's 50 day moving average is $22.88 and its 200 day moving average is $23.28.
Rackspace Hosting, Inc (NYSE:RAX) 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, including for e-commerce, Web content management, Website hosting, data services, office mail and collaboration, and private clouds.
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Source: Rackspace Hosting, Inc. (RAX) Sees Large Volume Increase on Better-Than-Expected Earnings
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