13GD Ownership Change: Learn Why Clifton S. Robbins’s Blue Harbour Group Just Purchased Rackspace Hosting, Inc Stake?

13GD Ownership Change: Learn Why Clifton S. Robbins's Blue Harbour Group Just Purchased Rackspace Hosting, Inc Stake?

The New Clifton S. Robbins’s Blue Harbour Group Holding in Rackspace Hosting, Inc

Blue Harbour Group filed with the SEC SC 13D/A form for Rackspace Hosting, Inc. The form can be accessed here: 000090266416008307. As reported in Clifton S. Robbins’s Blue Harbour Group’s form, the filler as of late owns 7.4% or 9,415,277 shares of the Information Technology–company.

Rackspace Hosting, Inc stake is a new one for the for the hedge fund and it was filed because of activity on October 4, 2016. We feel this shows Clifton S. Robbins’s Blue Harbour Group’s positive view for the stock. For a hedge fund managing $2.20 billion in assets and having 18+ active experts, we at Financialmagazine have no doubt the buy is a bullish signal.

The hedge fund is active investor in the Finance sector. In the manager’s last 13-F, we saw 25% of Clifton S. Robbins’s Blue Harbour Group’s US equities portfolio is in this sector.

Rackspace Hosting, Inc Institutional Sentiment

Latest Security and Exchange filings show 266 investors own Rackspace Hosting, Inc. The institutional ownership in Q3 2015 is very high, at 77.90% of the outstanding shares. This is decreased by 17235565 the total institutional shares. 98009844 were the shares owned by these institutional investors. In total 29 funds opened new Rackspace Hosting, Inc stakes, 96 increased stakes. There were 53 that closed positions and 94 reduced them.

3 managers had the stock in their top Ten. Notable investors are: Bhr Capital Llc, Blue Harbour Group L.P…

Barton Investment Management is an institutional investor bullish on Rackspace Hosting, Inc, owning 184365 shares as of Q3 2015 for 1.65% of its portfolio. Mark N. Diker Diker Management Llc owns 294820 shares or 1.61% of its portfolio. NY Wavelength Asset Management Llc have 0.02% of their stock portfolio for 202091 shares. Further, Blue Harbour Group Lp reported stake worth 8.74% of its US stock portfolio. The K3 Parametrica Management Ltd owns 19582 shares. Rackspace Hosting, Inc is 3.04% of the manager’s US portfolio.

Business 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. The Company offers private, public and hybrid clouds in its approximately 10 data centers located on over four continents, in Microsoft Azure and Amazon Web Services data centers, as well as in customer-owned data centers. Its services include dedicated customer care and technical support, such as operating system patching, application monitoring, network and firewall configurations, and identity management. The Company has operations located in multiple cities across the United States, as well as in London, Amsterdam, Zurich, Hong Kong, Sydney and Mexico City.

SEC Form 13D is filed within 10 days, by anyone who acquires beneficial ownership of 5%+ of any public firm. Activist investors and practices such as: company breakups, hostile takeovers, and change of control events, are permitted for this form filers. A filer must promptly update its 13D filing in case of acquisition or disposition of 1% or more of the securities that are the subject of the filing.

Clifton S. Robbins’s Blue Harbour Group website.

Insitutional Activity: The institutional sentiment decreased to 0.96 in 2016 Q2. Its down 0.17, from 1.13 in 2016Q1. The ratio worsened, as 32 funds sold all Rackspace Hosting, Inc. shares owned while 90 reduced positions. 40 funds bought stakes while 77 increased positions. They now own 103.33 million shares or 1.05% less from 104.43 million shares in 2016Q1.

Royal London Asset Mgmt Ltd has invested 0.01% of its portfolio in Rackspace Hosting, Inc. (NYSE:RAX). Moreover, Wellington Gp Limited Liability Partnership has 0% invested in Rackspace Hosting, Inc. (NYSE:RAX) for 24,508 shares. New York State Common Retirement Fund, a New York-based fund reported 339,663 shares. Livingston Gru Asset Management (Operating As Southport Capital Management) has 700 shares for 0.01% of their US portfolio. Oregon Employees Retirement Fund last reported 0.02% of its portfolio in the stock. Arrowstreet Ltd Partnership accumulated 0% or 30,800 shares. Moreover, Her Majesty The Queen In Right Of The Province Of Alberta As Represented By Alberta Invest Mgmt has 0% invested in Rackspace Hosting, Inc. (NYSE:RAX) for 15,200 shares. The Switzerland-based Credit Suisse Ag has invested 0.01% in Rackspace Hosting, Inc. (NYSE:RAX). Convergence Invest Prtnrs last reported 0.73% of its portfolio in the stock. The California-based Blackrock Fund Advsrs has invested 0.02% in Rackspace Hosting, Inc. (NYSE:RAX). Tower Research Capital Limited Liability Co (Trc) accumulated 0.02% or 10,250 shares. Moreover, Parametrica Mngmt Ltd has 0.32% invested in Rackspace Hosting, Inc. (NYSE:RAX) for 10,364 shares. Trexquant L P last reported 22,030 shares in the company. The United Kingdom-based Cantab Prns Llp has invested 0% in Rackspace Hosting, Inc. (NYSE:RAX). Ajo L P has 0.06% invested in the company for 673,594 shares.

Insider Transactions: Since August 5, 2016, the stock had 0 insider purchases, and 2 selling transactions for $464,446 net activity. Roenigk Mark sold $443,942 worth of stock or 14,744 shares.

Analysts await Rackspace Hosting, Inc. (NYSE:RAX) to report earnings on November, 14. They expect $0.22 earnings per share, down 15.38% or $0.04 from last year’s $0.26 per share. RAX’s profit will be $27.69M for 36.02 P/E if the $0.22 EPS becomes a reality. After $0.38 actual earnings per share reported by Rackspace Hosting, Inc. for the previous quarter, Wall Street now forecasts -42.11% negative EPS growth.

The stock closed at $31.7 during the last session. It is down 35.70% since March 3, 2016 and is uptrending. It has outperformed by 27.36% the S&P500.

Rackspace Hosting, Inc. operates in the managed cloud segment of the business information technology (IT) market. The company has a market cap of $3.99 billion. The Firm offers a portfolio of integrated IT solutions for common business needs. It has a 27.54 P/E ratio. The Firm 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.

Rackspace Hosting, Inc. (NYSE:RAX) Ratings Coverage

Out of 17 analysts covering Rackspace (NYSE:RAX), 7 rate it a “Buy”, 3 “Sell”, while 7 “Hold”. This means 41% are positive. $55 is the highest target while $25 is the lowest. The $38.27 average target is 20.73% above today’s ($31.7) stock price. Rackspace has been the topic of 30 analyst reports since August 10, 2015 according to StockzIntelligence Inc. The stock of Rackspace Hosting, Inc. (NYSE:RAX) has “Outperform” rating given on Tuesday, December 1 by RBC Capital Markets. As per Tuesday, August 11, the company rating was upgraded by Raymond James. On Monday, January 18 the stock rating was maintained by RBC Capital Markets with “Outperform”. The rating was downgraded by CLSA on Tuesday, August 11 to “Outperform”. UBS maintained the shares of RAX in a report on Tuesday, August 11 with “Neutral” rating. Barclays Capital maintained Rackspace Hosting, Inc. (NYSE:RAX) on Wednesday, November 11 with “Overweight” rating. The firm has “Underperform” rating by Raymond James given on Tuesday, August 30. The rating was upgraded by Tigress Financial on Thursday, August 13 to “Buy”. Stifel Nicolaus maintained Rackspace Hosting, Inc. (NYSE:RAX) rating on Tuesday, August 11. Stifel Nicolaus has “Buy” rating and $42 price target. The stock has “Outperform” rating given by RBC Capital Markets on Friday, January 15.

More recent Rackspace Hosting, Inc. (NYSE:RAX) news were published by: Bizjournals.com which released: “Rackspace rival taps former Racker as CEO” on October 06, 2016. Also Bizjournals.com published the news titled: “Buyer of Rackspace’s Cloud Sites seeks incentives for job in San Antonio” on September 23, 2016. Profitconfidential.com‘s news article titled: “RAX Stock: How Much Did Investors Make on Rackspace Hosting, Inc.?” with publication date: September 08, 2016 was also an interesting one.

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”

RAX Company Profile

Rackspace Hosting, Inc. (Rackspace), incorporated on March 7, 2000, operates in the managed cloud segment of the business information technology (IT) market. The Firm offers a portfolio of integrated IT solutions for common business needs. The Firm 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. The Firm offers private, public and hybrid clouds in its approximately 10 data centers located on over four continents, in Microsoft Azure and Amazon Web Services data centers, as well as in customer-owned data centers. The Company’s services include dedicated customer care and technical support, such as operating system patching, application monitoring, network and firewall configurations, and identity management. The Firm has activities located in multiple cities across the United States, as well as in London, Amsterdam, Zurich, Hong Kong, Sydney and Mexico City.

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