Rackspace Hosting (RAX) is Downgraded by Wells Fargo to Market Perform

Rackspace Hosting (RAX) was Downgraded by Wells Fargo to ” Market Perform”. Earlier the firm had a rating of “Outperform ” on the company shares. Wells Fargo advised their investors in a research report released on Aug 29, 2016.

Many Wall Street Analysts have commented on Rackspace Hosting. Company shares were Reiterated by RBC Capital Mkts on Aug 10, 2016 to “Outperform”, Firm has raised the Price Target to $ 33 from a previous price target of $26 .Company shares were Reiterated by FBN Securities on Aug 9, 2016 to “Sector Perform”, Firm has raised the Price Target to $ 26 from a previous price target of $21 .

On the company’s financial health, Rackspace Hosting reported $0.28 EPS for the quarter, beating the analyst consensus estimate by $ 0.06 according to the earnings call on Aug 8, 2016. Analyst had a consensus of $0.22. The company had revenue of $523.60 million for the quarter, compared to analysts expectations of $521.08 million. The company’s revenue was up 7.0% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.20 EPS.

Rackspace Hosting opened for trading at $27.64 and hit $28.35 on the upside on Tuesday, eventually ending the session at $27.71, with a gain of 0.73% or 0.2 points. The heightened volatility saw the trading volume jump to 20,80,257 shares. Company has a market cap of $3,486 M.

In a different news, on Aug 16, 2016, Mark Roenigk (Chief Operating Officer) sold 701 shares at $29.25 per share price. According to the SEC, on Jan 15, 2016, Taylor Rhodes (President & CEO) sold 14,325 shares at $20.24 per share price. On Nov 12, 2015, Tiffany Lathe (VP and GC) sold 4,500 shares at $29.66 per share price, according to the Form-4 filing with the securities and exchange commission.

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 including for e-commerce Web content management Website hosting data services office mail and collaboration and private clouds. It also offers advisory services for technology strategy security and compliance application assessment and migration and DevOps automation. The Company also offers its solutions across a variety of IT form factors including multi-tenant public cloud dedicated single-tenant servers private cloud and hybrid cloud. It also delivers managed services and Fanatical Support across its entire product portfolio. The Company sells its services to business customers in more than 120 countries. The Company has operations located across the United States as well as in London Amsterdam Zurich Hong Kong Sydney and Mexico City.

Rackspace Hosting

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