Zacks Investment Research upgraded shares of Rackspace Hosting Inc. (NYSE:RAX) from a hold rating to a buy rating in a research report report published on Tuesday. They currently have $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 analysts also recently issued reports on the company. Wells Fargo & Co. downgraded Rackspace Hosting from an outperform rating to a market perform rating in a research report on Monday, August 29th. Jefferies Group upped their price objective on Rackspace Hosting from $23.00 to $32.00 and gave the company a hold rating in a research report on Monday, August 29th. Tigress Financial downgraded Rackspace Hosting from a strong-buy rating to a neutral rating in a research report on Monday, August 29th. Raymond James Financial Inc. downgraded Rackspace Hosting from a market perform rating to an underperform rating and set a $32.00 price objective on the stock. in a research report on Tuesday, August 30th. Finally, Royal Bank Of Canada upped their price objective on Rackspace Hosting from $26.00 to $33.00 and gave the company an outperform rating in a research report on Wednesday, August 10th. Two investment analysts have rated the stock with a sell rating, eighteen have assigned a hold rating and five have given a buy rating to the company. The company has an average rating of Hold and a consensus target price of $29.03.

Rackspace Hosting (NYSE:RAX) remained flat at $31.78 during trading on Tuesday. 580,448 shares of the stock were exchanged. Rackspace Hosting has a 52-week low of $15.05 and a 52-week high of $32.14. The stock has a market cap of $4.00 billion, a P/E ratio of 27.98 and a beta of 1.67. The company’s 50-day moving average price is $31.30 and its 200-day moving average price is $25.67.

Rackspace Hosting (NYSE:RAX) last posted its earnings results on Monday, August 8th. The hosting company reported $0.38 EPS for the quarter, topping the Zacks’ consensus estimate of $0.22 by $0.16. The company had revenue of $489.40 million for the quarter, compared to the consensus estimate of $521.07 million. Rackspace Hosting had a return on equity of 16.80% and a net margin of 7.39%. Rackspace Hosting’s quarterly revenue was up 7.0% compared to the same quarter last year. During the same period in the previous year, the business earned $0.20 earnings per share. Equities analysts anticipate that Rackspace Hosting will post $1.07 EPS for the current fiscal year.

A number of hedge funds have recently bought and sold shares of RAX. A.R.T. Advisors LLC boosted its stake in Rackspace Hosting by 221.7% in the first quarter. A.R.T. Advisors LLC now owns 283,519 shares of the hosting company’s stock valued at $6,121,000 after buying an additional 195,400 shares in the last quarter. HBK Investments L P boosted its stake in Rackspace Hosting by 28.7% in the first quarter. HBK Investments L P now owns 754,942 shares of the hosting company’s stock valued at $16,299,000 after buying an additional 168,491 shares in the last quarter. Geode Capital Management LLC boosted its stake in Rackspace Hosting by 6.0% in the first quarter. Geode Capital Management LLC now owns 712,067 shares of the hosting company’s stock valued at $15,372,000 after buying an additional 40,219 shares in the last quarter. Riverhead Capital Management LLC boosted its stake in Rackspace Hosting by 180.5% in the first quarter. Riverhead Capital Management LLC now owns 629,938 shares of the hosting company’s stock valued at $13,600,000 after buying an additional 405,378 shares in the last quarter. Finally, UBS Group AG boosted its stake in Rackspace Hosting by 2.6% in the first quarter. UBS Group AG now owns 105,394 shares of the hosting company’s stock valued at $2,276,000 after buying an additional 2,676 shares in the last quarter. 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.

5 Day Chart for NYSE:RAX

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