Zacks Investment Research lowered shares of Rackspace Hosting Inc. (NYSE:RAX) from a buy rating to a hold rating in a research report sent to investors on Wednesday morning.

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 analysts have also weighed in on RAX. Vetr upgraded shares of Rackspace Hosting from a buy rating to a strong-buy rating and set a $24.00 price target for the company in a research report on Monday, June 27th. SunTrust Banks Inc. initiated coverage on shares of Rackspace Hosting in a research report on Thursday, July 21st. They set a neutral rating and a $25.00 price target for the company. FBN Securities increased their price target on shares of Rackspace Hosting from $21.00 to $26.00 and gave the company a sector perform rating in a research report on Tuesday, August 9th. Royal Bank Of Canada increased their price target on shares of Rackspace Hosting from $26.00 to $33.00 and gave the company an outperform rating in a research report on Wednesday, August 10th. Finally, Jefferies Group restated a hold rating and set a $23.00 price target on shares of Rackspace Hosting in a research report on Wednesday, August 10th. Two research analysts have rated the stock with a sell rating, eighteen have issued a hold rating and five have given a buy rating to the company’s stock. The company has a consensus rating of Hold and a consensus price target of $29.03.

Analyst Recommendations for Rackspace Hosting (NYSE:RAX)

Rackspace Hosting (NYSE:RAX) opened at 31.77 on Wednesday. The firm has a market capitalization of $4.00 billion, a PE ratio of 27.97 and a beta of 1.67. The stock has a 50 day moving average of $31.42 and a 200 day moving average of $25.71. Rackspace Hosting has a 12 month low of $15.05 and a 12 month high of $32.14.

Rackspace Hosting (NYSE:RAX) last announced its earnings results on Monday, August 8th. The hosting company reported $0.38 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.22 by $0.16. The company earned $489.40 million during the quarter, compared to the consensus estimate 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 in the prior year, the company posted $0.20 earnings per share. On average, equities analysts predict that Rackspace Hosting will post $1.07 earnings per share for the current fiscal year.

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Shelton Capital Management increased its position in shares of Rackspace Hosting by 1.6% in the second quarter. Shelton Capital Management now owns 12,402 shares of the hosting company’s stock worth $259,000 after buying an additional 200 shares during the period. Globeflex Capital L P increased its position in shares of Rackspace Hosting by 0.8% in the second quarter. Globeflex Capital L P now owns 45,664 shares of the hosting company’s stock worth $953,000 after buying an additional 341 shares during the period. Advisory Services Network LLC increased 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 during the period. CIBC Asset Management Inc increased its position in shares of Rackspace Hosting by 8.3% in the second quarter. CIBC Asset Management Inc now owns 10,797 shares of the hosting company’s stock worth $225,000 after buying an additional 823 shares during the period. Finally, Oregon Public Employees Retirement Fund increased its position in shares of Rackspace Hosting by 2.3% in the second quarter. Oregon Public Employees Retirement Fund now owns 39,508 shares of the hosting company’s stock worth $824,000 after buying an additional 903 shares during the period. 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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