Investors Buy Red Hat Inc. (RHT) on Weakness
Investors bought shares of Red Hat Inc. (NYSE:RHT) on weakness during trading hours on Monday. $20.74 million flowed into the stock on the tick-up and $14.84 million flowed out of the stock on the tick-down, for a money net flow of $5.90 million into the stock. Of all companies tracked, Red Hat had the 19th highest net in-flow for the day. Red Hat traded down ($0.70) for the day and closed at $73.67
A number of equities research analysts have recently commented on the stock. Stifel Nicolaus reaffirmed a “buy” rating on shares of Red Hat in a research note on Thursday, June 23rd. Robert W. Baird reiterated a “buy” rating on shares of Red Hat in a research report on Thursday, June 23rd. Raymond James Financial Inc. reiterated a “buy” rating on shares of Red Hat in a research report on Thursday, June 23rd. Needham & Company LLC reiterated a “buy” rating and set a $98.00 target price on shares of Red Hat in a research report on Thursday, June 23rd. Finally, Oppenheimer Holdings Inc. reiterated a “buy” rating and set a $88.00 target price on shares of Red Hat in a research report on Thursday, June 23rd. Two equities research analysts have rated the stock with a sell rating, five have issued a hold rating and twenty-four have issued a buy rating to the company. Red Hat presently has an average rating of “Buy” and a consensus price target of $87.72.
The firm’s 50 day moving average price is $74.00 and its 200 day moving average price is $73.32. The company has a market cap of $13.34 billion and a price-to-earnings ratio of 64.62.
Red Hat (NYSE:RHT) last released its quarterly earnings results on Wednesday, June 22nd. The open-source software company reported $0.50 EPS for the quarter, meeting the Thomson Reuters’ consensus estimate of $0.50. The business had revenue of $567.90 million for the quarter, compared to analysts’ expectations of $562.76 million. Red Hat’s revenue for the quarter was up 18.1% compared to the same quarter last year. During the same period in the previous year, the company earned $0.44 EPS. On average, analysts anticipate that Red Hat Inc. will post $2.21 EPS for the current fiscal year.
In other news, EVP Delisa Alexander sold 2,395 shares of the company’s stock in a transaction dated Tuesday, July 19th. The shares were sold at an average price of $72.83, for a total transaction of $174,427.85. Following the completion of the sale, the executive vice president now owns 60,780 shares of the company’s stock, valued at approximately $4,426,607.40. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Michael Cunningham sold 10,000 shares of the company’s stock in a transaction dated Monday, July 11th. The shares were sold at an average price of $73.14, for a total transaction of $731,400.00. Following the sale, the executive vice president now directly owns 64,800 shares of the company’s stock, valued at approximately $4,739,472. The disclosure for this sale can be found here.
An institutional investor recently raised its position in Red Hat stock. State of Tennessee Treasury Department raised its stake in shares of Red Hat Inc. (NYSE:RHT) by 156.3% during the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 72,034 shares of the open-source software company’s stock after buying an additional 43,934 shares during the period. State of Tennessee Treasury Department’s holdings in Red Hat were worth $5,965,000 as of its most recent filing with the SEC.
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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