Rackspace Hosting Inc. (NYSE:RAX) was the target of a significant decrease in short interest in the month of August. As of August 31st, there was short interest totalling 8,250,276 shares, a decrease of 38.3% from the August 15th total of 13,380,019 shares. Currently, 7.8% of the company’s stock are sold short. Based on an average daily volume of 6,549,948 shares, the days-to-cover ratio is presently 1.3 days.
Several large investors have recently made changes to their positions in the company. Mason Street Advisors LLC purchased a new stake in shares of Rackspace Hosting during the second quarter worth about $1,017,000. Amalgamated Bank boosted its stake in shares of Rackspace Hosting by 31.8% in the second quarter. Amalgamated Bank now owns 18,781 shares of the hosting company’s stock worth $564,000 after buying an additional 4,533 shares during the period. Numeric Investors LLC boosted its stake in shares of Rackspace Hosting by 536.2% in the second quarter. Numeric Investors LLC now owns 112,600 shares of the hosting company’s stock worth $2,349,000 after buying an additional 94,900 shares during the period. Point72 Asset Management L.P. purchased a new stake in shares of Rackspace Hosting during the second quarter worth about $1,385,000. Finally, AHL Partners LLP boosted its stake in shares of Rackspace Hosting by 593.6% in the second quarter. AHL Partners LLP now owns 84,788 shares of the hosting company’s stock worth $1,768,000 after buying an additional 72,563 shares during the period. Institutional investors and hedge funds own 83.65% of the company’s stock.
Shares of Rackspace Hosting (NYSE:RAX) opened at 31.44 on Friday. The firm has a market cap of $3.96 billion, a price-to-earnings ratio of 27.68 and a beta of 1.59. The stock’s 50 day moving average is $28.54 and its 200-day moving average is $24.18. Rackspace Hosting has a 12-month low of $15.05 and a 12-month high of $32.14.
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Rackspace Hosting (NYSE:RAX) last announced its earnings results on Monday, August 8th. The hosting company reported $0.38 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.22 by $0.16. The business earned $489.40 million during the quarter, compared to analysts’ expectations of $521.07 million. Rackspace Hosting had a net margin of 7.39% and a return on equity of 16.80%. The firm’s revenue for the quarter was up 7.0% on a year-over-year basis. During the same quarter last year, the company posted $0.20 EPS. On average, analysts anticipate that Rackspace Hosting will post $1.07 EPS for the current fiscal year.
RAX has been the topic of a number of research analyst reports. Vetr upgraded shares of Rackspace Hosting from a “hold” rating to a “buy” rating and set a $24.00 price objective on the stock in a research note on Tuesday, August 2nd. Wells Fargo & Co. reiterated a “buy” rating on shares of Rackspace Hosting in a research note on Saturday, June 4th. Zacks Investment Research upgraded shares of Rackspace Hosting from a “sell” rating to a “hold” rating in a research note on Saturday, August 6th. 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. Finally, Needham & Company LLC reiterated a “hold” rating on shares of Rackspace Hosting in a research note on Friday, August 26th. 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. Rackspace Hosting has a consensus rating of “Hold” and an average 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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