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Rackspace Beats Q3 Expectations, Shares Surge
Posted On Nov 10 2015
Comment: Off
However, analysts were expecting earnings of $0.20 per share on revenue of $503.1 million. The net money flow for the block trade was $(-0.63) million. The stock was bought at an average price of $29.24 per share, for a total transaction of $2,500,020.00.
Many analysts have commented on the company rating. Bank of America upgraded shares of Rackspace Hosting from a “neutral” rating to a “buy” rating and dropped their price target for the stock from $47.00 to $38.00 in a research report on Monday, November 2nd. The company is three months removed from upping its buyback authorization to $1B, and promising to buy back at least $500M worth of shares in 6-9 months. William Blair reiterated an “outperform” rating on shares of Rackspace Hosting in a research report on Monday, October 12th. JMP Securities reiterated a “buy” rating and issued a $55.00 price objective (down from $62.00) on shares of Rackspace Hosting in a research report on Tuesday, August 11th. The shares have received an average rating of 2.06 from 16 brokerage firms.
Rackspace Hosting, Inc (NYSE:RAX): On Friday heightened volatility was witnessed in Rackspace Hosting, Inc (NYSE:RAX) which led to swings in the share price. 3,939,001 shares of the company’s stock were exchanged. The 52-week low of the share price is at $23.65.
Analysts at Zacks have given a short term rating of sell on Rackspace Hosting, Inc (NYSE:RAX) with a rank of 4.
Rackspace Hosting, Inc. (NYSE:RAX) operates in the managed cloud segment of the company information technology (IT) market.
Furthermore, Rackspace is making strides in the cloud market, gaining significant market share because of its aforementioned partnerships. The Company sells its services to business customers in more than 120 countries. The Company has operations located across the USA, as well as in Mexico City, Sydney and London, Amsterdam, Zurich, Hong Kong.
The San Antonio company is one of the pioneers in cloud-computing services, which free companies from having to build, maintain and staff data centers.
