Blue Harbour Group Ups Activist Stake in Rackspace Hosting Inc. (RAX) As Shares Continue To Sink

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Despite the seemingly positive results and growth projections, Rackspace Hosting Inc. (NYSE:RAX)’s stock performance has been anything but impressive, with shares of the company having dropped by 37.52% year-to-date. Recently, Karl Pichler, Chief Executive Officer (CEO) of Rackspace Hosting Inc. (NYSE:RAX), unloaded 749 shares of the company at $32.22 per share for an aggregate price of about $24,132. Following the sale, Pichler now owns 87,484 shares of the company.

Last month, Intel Corporation (NASDAQ:INTC) announced a new collaboration with Rackspace Hosting Inc. (NYSE:RAX) as a part of the Intel Cloud for All initiative. Intel and Rackspace will establish the OpenStack Innovation Center to focus on driving enterprise features and scale optimizations into the OpenStack source code, according to a statement by Intel. Rackspace Hosting Inc. (NYSE:RAX) is the co-founder and main operator of open source cloud software platform OpenStack. The OpenStack Innovation Center will include the world’s largest OpenStack developer cloud, consisting of two 1,000-node clusters that will be available to the OpenStack community-at-large to support advanced, large-scale testing of OpenStack performance, code and new features. These testing clusters are expected to be available within the next six months.

At the end of last month, Rackspace Hosting Inc. (NYSE:RAX) announced that it was positioned by Gartner Inc. in the Leaders quadrant of “Magic Quadrant for Cloud-Enabled Managed Hosting” in both North America and Europe. Rackspace Hosting Inc. (NYSE:RAX) was among the 19 providers assessed by Gartner. The company was one of two in the Leaders quadrant in North America, and it was one of seven in the Leaders quadrant in Europe.

Among investors we track is Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, which held 377,723 Rackspace Hosting Inc. (NYSE:RAX) shares as of June 30, the majority of which were purchased during the second quarter.

Disclosure: None

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