Investors Buy Shares of Red Hat Inc. (RHT) on Weakness
Traders bought shares of Red Hat Inc. (NYSE:RHT) on weakness during trading hours on Thursday. $32.64 million flowed into the stock on the tick-up and $19.35 million flowed out of the stock on the tick-down, for a money net flow of $13.29 million into the stock. Of all equities tracked, Red Hat had the 22nd highest net in-flow for the day. Red Hat traded down ($0.17) for the day and closed at $73.49
A number of brokerages have recently commented on RHT. Drexel Hamilton reaffirmed a “buy” rating and issued a $105.00 price objective on shares of Red Hat in a research report on Monday, June 20th. Needham & Company LLC reissued a “buy” rating and set a $98.00 price target on shares of Red Hat in a research report on Wednesday, March 23rd. Mizuho reissued a “buy” rating and set a $88.00 price target on shares of Red Hat in a research report on Thursday, June 23rd. BTIG Research reissued a “buy” rating and set a $92.00 price target on shares of Red Hat in a research report on Thursday, June 23rd. Finally, Morgan Stanley downgraded Red Hat from an “overweight” rating to an “equal weight” rating and boosted their price target for the company from $72.18 to $80.00 in a research report on Thursday, July 7th. They noted that the move was a valuation call. 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 stock currently has an average rating of “Buy” and a consensus price target of $87.79.
The company’s 50-day moving average is $75.65 and its 200-day moving average is $73.09. The company has a market capitalization of $13.31 billion and a P/E ratio of 64.46.
Red Hat (NYSE:RHT) last issued its quarterly earnings results on Wednesday, June 22nd. The open-source software company reported $0.50 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.50. The company earned $567.90 million during the quarter, compared to analyst estimates of $562.76 million. During the same period in the prior year, the business earned $0.44 EPS. The business’s revenue for the quarter was up 18.1% on a year-over-year basis. On average, equities research analysts predict that Red Hat Inc. will post $2.21 EPS for the current fiscal year.
In related news, CEO James M. Whitehurst sold 16,239 shares of the firm’s stock in a transaction that occurred on Thursday, April 21st. The shares were sold at an average price of $75.62, for a total value of $1,227,993.18. Following the completion of the sale, the chief executive officer now owns 409,538 shares of the company’s stock, valued at $30,969,263.56. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, EVP Delisa Alexander sold 6,984 shares of the firm’s stock in a transaction that occurred on Thursday, April 21st. The shares were sold at an average price of $75.77, for a total transaction of $529,177.68. Following the completion of the sale, the executive vice president now directly owns 52,931 shares of the company’s stock, valued at approximately $4,010,581.87. The disclosure for this sale can be found here.
Other hedge funds recently modified their holdings of the company. Turner Investments L.P. bought a new stake in shares of Red Hat during the fourth quarter worth $1,093,000. Robeco Institutional Asset Management B.V. raised its stake in shares of Red Hat by 191.8% in the fourth quarter. Robeco Institutional Asset Management B.V. now owns 14,458 shares of the open-source software company’s stock worth $1,198,000 after buying an additional 9,503 shares in the last quarter. Schroder Investment Management Group bought a new stake in shares of Red Hat during the fourth quarter worth $1,363,000. Advantus Capital Management Inc raised its stake in shares of Red Hat by 3.0% in the fourth quarter. Advantus Capital Management Inc now owns 17,690 shares of the open-source software company’s stock worth $1,465,000 after buying an additional 516 shares in the last quarter. Finally, Commerzbank Aktiengesellschaft FI raised its stake in shares of Red Hat by 245.3% in the fourth quarter. Commerzbank Aktiengesellschaft FI now owns 19,454 shares of the open-source software company’s stock worth $1,611,000 after buying an additional 13,820 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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