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Shares of Rackspace Hosting (NYSE:RAX) were the target of a significant drop in short interest in May. As of May 30th, there was short interest totalling 7,277,384 shares, a drop of 48.0% from the May 15th total of 13,984,975 shares, Analyst RN reports. Approximately 6.2% of the company’s stock are sold short. Based on an average trading volume of 6,761,857 shares, the days-to-cover ratio is currently 1.1 days.

Several analysts have recently commented on the stock. Analysts at Davidson downgraded shares of Rackspace Hosting to an “underperform” rating in a research note on Friday, June 13th. Separately, analysts at DA Davidson downgraded shares of Rackspace Hosting from a “neutral” rating to an “underperform” rating in a research note on Friday, June 13th. They now have a $33.00 price target on the stock. They noted that the move was a valuation call. Finally, analysts at JPMorgan Chase & Co. initiated coverage on shares of Rackspace Hosting in a research note on Thursday, May 15th. They set an “overweight” rating and a $35.00 price target on the stock. Three investment analysts have rated the stock with a sell rating, eight have given a hold rating and seven have given a buy rating to the stock. The company currently has an average rating of “Hold” and an average price target of $41.04.

Rackspace Hosting (NYSE:RAX) opened at 37.15 on Tuesday. Rackspace Hosting has a one year low of $26.18 and a one year high of $54.20. The stock has a 50-day moving average of $34.30 and a 200-day moving average of $34.68. The company has a market cap of $5.278 billion and a P/E ratio of 61.67.

Rackspace Hosting (NYSE:RAX) last announced its earnings results on Monday, May 12th. The company reported $0.18 earnings per share for the quarter, beating the analysts’ consensus estimate of $0.12 by $0.06. The company had revenue of $421.00 million for the quarter, compared to the consensus estimate of $419.63 million. During the same quarter last year, the company posted $0.19 earnings per share. Rackspace Hosting’s revenue was up 16.2% compared to the same quarter last year. On average, analysts predict that Rackspace Hosting will post $0.69 earnings per share for the current fiscal year.

Rackspace Hosting, Inc, is the open cloud company. The Company offers a diverse portfolio of cloud computing services, including public, dedicated and private cloud, and hybrid hosting.

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