Is Goldman Positive On Shares of Rackspace (NYSE:RAX)?


Why Has Goldman Given Rackspace (NYSE:RAX) a $27 Price Target

New York: Rackspace (NYSE:RAX) coverage was initiated with a key ‘Neutral’ rating as well as a $27 target price per share at Goldman. The PT by Goldman provides upside of 10.61% from the current price.

From a total of 17 analysts covering Rackspace (NYSE:RAX) stock, 0 rate it a ”Buy”, 0 a “Sell”, and 0 a ”Hold”. This means that NaN of the ratings are positive. The highest target price is $55 while the lowest target price is $23. The mean of all analyst targets is $38.88 with a 66.01% above today’s ($24.42) stock price. Rackspace was the topic of 22 analyst reports since August 10, 2015 according to the firm StockzIntelligence Inc. RBC Capital Markets upgraded shares on December 1 to “Outperform” rating. CLSA downgraded shares to “Outperform” rating and $35 target share price in a report from an August 11. UBS maintained RAX stock in a recent report from November 10 with “Neutral” rating. Stifel Nicolaus maintained the rating on August 11. Stifel Nicolaus has a “Buy” rating and a $42 price target on shares. Finally, Tigress Financial upgraded the stock to “Buy” rating in a report issued on an August 13.

Approximately 468,399 shares of stock traded hands. Rackspace Hosting, Inc. (NYSE:RAX) has declined 43.09% since May 18, 2015 and is downtrending. It has underperformed by 37.28% the S&P500.

The overall sentiment of institutions has decreased to 0.85 in Q2 2015. Its down 0.27, from 1.12 in 2015Q2. The ratio dived, as 53 institutions have sold all the shares of Rackspace Hosting, Inc. that they owned while 94 funds have taken shares off the table. 29 funds have purchased shares for the first time while 96 added to their positions. These institutions now hold 98.01 million shares or 15.10% less than the 115.45 million shares they owned in 2015Q2.

The Fund Blue Harbour Group L.P. currently is holding shares equating to 8.74% of its total portfolio in Rackspace Hosting, Inc. representing a total of 11.36 million shares. Another fund,Omt Capital Management Llc, is holding a total of 108,710 shares equating to 3.27% of their holdings. Additionally, Parametrica Management Ltd has a 19,582 share stake in Rackspace Hosting, Inc. which represents 3.04% of their total portfolio. The Fund, Barton Investment Management, based out of Pennsylvania, has also built up a stake in the stock, which represents a total of 1.65% of their total portfolio. Finally Diker Management Llc, a fund which is based in the state of New York reported a total holdings of 294,820 shares.

Insider activity is a very important aspect to track on any stock. Going back to April 1, 2015, shareholders of Rackspace Hosting, Inc. have witnessed 0 insider buys, and a total of 14 sales equating to a net activity of approximately $566,963 . Saporito Joseph sold 440 shares worth approximately $13,193. Roenigk Mark sold 3,371 shares worth approximately $100,799. Pichler Karl sold 3,371 shares worth approximately $100,803. Lathe Tiffany sold 2,833 shares worth approximately $84,720. The company insider Rhodes Taylor sold 5,057 shares worth $151,110.

Rackspace Hosting, Inc. operates in the managed cloud segment of the business information technology (IT) market. The company has a market cap of $3.40 billion. The Firm 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 has 26.97 P/E ratio. It also offers advisory services for technology strategy, security and compliance, application assessment and migration, and DevOps automation.

According to Zacks Investment Research, “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”