Investors Buy Shares of Red Hat Inc. (RHT) on Weakness
Traders purchased shares of Red Hat Inc. (NYSE:RHT) on weakness during trading on Friday. $46.67 million flowed into the stock on the tick-up and $32.87 million flowed out of the stock on the tick-down, for a money net flow of $13.80 million into the stock. Of all equities tracked, Red Hat had the 6th highest net in-flow for the day. Red Hat traded down ($0.51) for the day and closed at $74.37
A number of research firms have issued reports on RHT. Raymond James Financial Inc. reaffirmed a “buy” rating on shares of Red Hat in a research note on Thursday, June 23rd. Deutsche Bank AG reaffirmed a “buy” rating and issued a $95.00 price objective on shares of Red Hat in a research note on Thursday, June 23rd. Robert W. Baird reaffirmed a “buy” rating on shares of Red Hat in a research note on Thursday, June 23rd. Royal Bank Of Canada reaffirmed a “buy” rating on shares of Red Hat in a research note on Thursday, June 23rd. Finally, Oppenheimer Holdings Inc. reaffirmed a “buy” rating and issued a $88.00 price objective on shares of Red Hat in a research note on Thursday, June 23rd. Two research analysts have rated the stock with a sell rating, five have assigned a hold rating and twenty-four have issued a buy rating to the company. The company presently has a consensus rating of “Buy” and a consensus target price of $87.72.
The company has a 50 day moving average price of $73.98 and a 200 day moving average price of $73.09. The company has a market cap of $13.47 billion and a PE ratio of 65.24.
Red Hat (NYSE:RHT) last released its earnings results on Wednesday, June 22nd. The open-source software company reported $0.50 earnings per share (EPS) for the quarter, meeting the Zacks’ consensus estimate of $0.50. During the same quarter last year, the business posted $0.44 earnings per share. The company earned $567.90 million during the quarter, compared to analysts’ expectations of $562.76 million. The company’s revenue for the quarter was up 18.1% on a year-over-year basis. Analysts expect that Red Hat Inc. will post $2.21 EPS for the current fiscal year.
In related news, EVP Michael Cunningham sold 10,000 shares of Red Hat stock in a transaction on Tuesday, July 26th. The stock was sold at an average price of $75.00, for a total value of $750,000.00. Following the completion of the transaction, the executive vice president now directly owns 52,484 shares in the company, valued at $3,936,300. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, EVP Delisa Alexander sold 2,395 shares of Red Hat stock in a transaction on Tuesday, July 19th. The shares were sold at an average price of $72.83, for a total value of $174,427.85. Following the completion of the transaction, the executive vice president now owns 60,780 shares of the company’s stock, valued at $4,426,607.40. The disclosure for this sale can be found here.
Other hedge funds and institutional investors recently added to or reduced their stakes in the company. BlackRock Advisors LLC raised its position in Red Hat by 43.2% in the fourth quarter. BlackRock Advisors LLC now owns 168,072 shares of the open-source software company’s stock worth $13,918,000 after buying an additional 50,714 shares during the period. State of Tennessee Treasury Department boosted its stake in Red Hat by 156.3% in the fourth quarter. State of Tennessee Treasury Department now owns 72,034 shares of the open-source software company’s stock worth $5,965,000 after buying an additional 43,934 shares in the last quarter. Finally, KBC Group NV boosted its stake in Red Hat by 46.9% in the fourth quarter. KBC Group NV now owns 60,628 shares of the open-source software company’s stock worth $5,020,000 after buying an additional 19,357 shares in the last quarter.
Red Hat, Inc is a provider of open source software solutions, using a community-powered approach to develop and offer operating system, virtualization, middleware, storage and cloud technologies. The Company employs an open source development model. The open source development model allows it to use the collective input, resources and knowledge of a global community of contributors who can collaborate to develop, maintain and enhance software because the human-readable source code for that software is publicly available and licenses permit modification.
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