It’s not the first time that a possible sale of the hosting company has been in the works; Rackspace has looked at taking the company private for at least two years, and entertained offers in mid-2014 from several companies including CenturyLink. The stock stands almost $2.34 off versus the 52-week high of $32.84 and $15.45 above the 52-week low of $15.05. There are 12 equity research firms suggesting a Hold and 1 consider it Sell.
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For the current quarter, the company expects revenue between $510 million and $515 million, while analysts surveyed by Thomson Reuters had expected $530 million.
For the second quarter, Rackspace estimated revenue of $519 million to $524 million, while analysts polled by Thomson Reuters expected revenue of $521 million and per-share profit of 22 cents. 0 analysts have suggested “Sell” for the company. The number of shares now owned by investors are 124.58 mln. Meanwhile, Director Flick Michael A Purchased 5,578 shares worth $91000.26, through a transaction dated 2016-06-07. The Median price target for the stock is listed at $27. This transaction occurred on 2016-06-02 totals $17000.26. (NYSE:RAX), according to U.S. Securities and Exchange Commission (SEC) filings. The company has market capitalization of $3.68B. “We are committed to investing and growing the current business with plans to have the Cloud Sites team firmly rooted in San Antonio”. GODDEN IAN is ranked as third insider holder of the stock.
After the last closing session, the bid price was seen at 24.50.
In Rackspace Hosting, Inc.
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If we have a peek on EPS and surprise factor history during last four quarters, for the previous quarter ended on 3/2016, the consensus mean EPS was $0.22 while the company reported $0.37 EPS on 5/9/2016 AMC with a difference of 0.15 marking a surprise factor of 68.18%. (NYSE:RAX) to report earnings of about $-0.15 per share on $384.45M in revenue. Overweight rating was given by 0 analysts and Underweight rating was given by 0 analysts. That is compared with the $0.04 in earnings per share it reported during the same period a year ago. The stock is now trading up its SMA 50 of $22.71.
