An issue of Rackspace Hosting Inc. (NYSE:RAX) debt rose 3% against its face value during trading on Tuesday. The high-yield debt issue has a 6.5% coupon and will mature on January 15, 2024. The debt is now trading at $108.44 and was trading at $104.69 one week ago. Price moves in a company’s debt in credit markets often anticipate parallel moves in its stock price.

A number of equities analysts recently issued reports on the stock. William Blair cut shares of Rackspace Hosting from an “outperform” rating to a “market perform” rating in a research note on Friday, August 26th. Oppenheimer Holdings Inc. reiterated an “outperform” rating and issued a $32.00 price target (up previously from $30.00) on shares of Rackspace Hosting in a research note on Wednesday, August 10th. SunTrust Banks Inc. assumed coverage on shares of Rackspace Hosting in a research note on Thursday, July 21st. They issued a “neutral” rating and a $25.00 price target on the stock. Vetr upgraded shares of Rackspace Hosting from a “hold” rating to a “buy” rating and set a $24.00 price target on the stock in a research note on Tuesday, August 2nd. Finally, Zacks Investment Research cut shares of Rackspace Hosting from a “hold” rating to a “sell” rating in a research note on Wednesday, July 20th. Two investment analysts have rated the stock with a sell rating, eighteen have assigned a hold rating and five have assigned a buy rating to the stock. The stock presently has an average rating of “Hold” and a consensus target price of $28.64.

Rackspace Hosting Inc. (NYSE:RAX) opened at 31.51 on Wednesday. The firm has a 50-day moving average price of $29.70 and a 200 day moving average price of $24.51. The company has a market capitalization of $3.96 billion, a P/E ratio of 27.74 and a beta of 1.59. Rackspace Hosting Inc. has a 1-year low of $15.05 and a 1-year high of $32.14.

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Rackspace Hosting (NYSE:RAX) last released 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. Rackspace Hosting had a return on equity of 16.80% and a net margin of 7.39%. The firm earned $489.40 million during the quarter, compared to the consensus estimate of $521.07 million. During the same quarter in the previous year, the company posted $0.20 earnings per share. The company’s revenue was up 7.0% compared to the same quarter last year. On average, equities analysts predict that Rackspace Hosting Inc. will post $1.07 EPS for the current year.

Large investors have recently added to or reduced their stakes in the company. Shelton Capital Management increased its stake in 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 boosted 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 valued at $953,000 after buying an additional 341 shares in the last quarter. Advisory Services Network LLC boosted 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 valued at $112,000 after buying an additional 500 shares in the last quarter. Pacad Investment Ltd. boosted its position in shares of Rackspace Hosting by 1.9% in the first quarter. Pacad Investment Ltd. now owns 42,235 shares of the hosting company’s stock valued at $912,000 after buying an additional 778 shares in the last quarter. Finally, CIBC Asset Management Inc boosted 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 valued at $225,000 after buying an additional 823 shares in the last quarter. 83.65% of the stock is owned by hedge funds and other institutional investors.

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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