Red Hat Inc. (RHT) Lifted to Buy at Zacks Investment Research
Zacks Investment Research upgraded shares of Red Hat Inc. (NYSE:RHT) from a hold rating to a buy rating in a research report released on Wednesday morning. Zacks Investment Research currently has $89.00 price objective on the open-source software company’s stock.
According to Zacks, “Red Hat Inc. is a leading developer and provider of open source software and services, including the Red Hat Linux operating system. Unlike proprietary software, open source software has publicly available source code and can be copied, modified and distributed with minimal restrictions. The web site, REDHAT.COM, is a leading online source of information and news about open source software and one of the largest online communities of open source software users and developers. “
A number of other equities research analysts also recently commented on RHT. 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. Oppenheimer Holdings Inc. set a $88.00 price objective on Red Hat and gave the stock a buy rating in a research note on Thursday, September 22nd. Stifel Nicolaus reissued a buy rating on shares of Red Hat in a research note on Thursday, June 23rd. Finally, Mizuho reissued a buy rating and set a $88.00 price objective on shares of Red Hat in a research note on Thursday, June 23rd. One research analyst has rated the stock with a sell rating, five have assigned a hold rating and twenty-five have issued a buy rating to the company’s stock. The company presently has a consensus rating of Buy and a consensus price target of $89.33.
Shares of Red Hat (NYSE:RHT) opened at 78.70 on Wednesday. Red Hat has a 12-month low of $59.59 and a 12-month high of $84.44. The firm has a 50-day moving average price of $75.84 and a 200 day moving average price of $74.79. The stock has a market cap of $14.13 billion, a PE ratio of 66.19 and a beta of 1.52.
Red Hat (NYSE:RHT) last announced its quarterly earnings data on Wednesday, September 21st. The open-source software company reported $0.55 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.54 by $0.01. Red Hat had a return on equity of 18.93% and a net margin of 9.84%. The business had revenue of $599.80 million for the quarter. During the same quarter in the previous year, the firm earned $0.47 earnings per share. Red Hat’s revenue was up 19.0% on a year-over-year basis. Equities research analysts expect that Red Hat will post $2.24 earnings per share for the current year.
In related news, EVP Delisa Alexander sold 2,395 shares of the firm’s stock in a transaction dated Tuesday, July 19th. The shares were sold at an average price of $72.83, for a total value of $174,427.85. Following the transaction, the executive vice president now directly owns 60,780 shares of the company’s stock, valued at approximately $4,426,607.40. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, EVP Michael Cunningham sold 10,000 shares of the firm’s stock in a transaction dated Tuesday, July 26th. The shares were sold at an average price of $75.00, for a total transaction 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 disclosure for this sale can be found here. 0.76% of the stock is currently owned by corporate insiders.
Hedge funds and other institutional investors have recently modified their holdings of the stock. Emerald Acquisition Ltd. bought a new position in shares of Red Hat during the second quarter worth $87,400,000. UBS Asset Management Americas Inc. raised its position in shares of Red Hat by 155.1% in the first quarter. UBS Asset Management Americas Inc. now owns 1,227,508 shares of the open-source software company’s stock worth $91,461,000 after buying an additional 746,414 shares in the last quarter. Smith Asset Management Group LP raised its position in shares of Red Hat by 219.6% in the second quarter. Smith Asset Management Group LP now owns 972,049 shares of the open-source software company’s stock worth $70,571,000 after buying an additional 667,933 shares in the last quarter. Bank of Montreal Can bought a new position in shares of Red Hat during the second quarter worth $41,574,000. Finally, FMR LLC raised its position in shares of Red Hat by 5.1% in the second quarter. FMR LLC now owns 11,463,375 shares of the open-source software company’s stock worth $832,240,000 after buying an additional 558,296 shares in the last quarter. 94.82% of the stock is currently owned by hedge funds and other institutional investors.
About Red Hat
Red Hat, Inc (Red Hat) provides open source software solutions, using a community-powered approach to develop and offer operating system, virtualization, management, middleware, cloud, mobile and storage technologies. Red Hat operates through three geographical segments: the Americas, including the United States, Canada and Latin America; EMEA, including Europe, Middle East and Africa, and Asia Pacific.
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