Citigroup Reiterates “Buy” Rating for Red Hat (RHT)
Red Hat (NYSE:RHT)‘s stock had its “buy” rating reiterated by analysts at Citigroup in a note issued to investors on Wednesday. They presently have a $148.00 target price on the open-source software company’s stock. Citigroup’s price objective suggests a potential upside of 17.34% from the company’s current price.
A number of other research firms also recently issued reports on RHT. Cowen reaffirmed a “buy” rating and set a $136.00 price objective on shares of Red Hat in a report on Monday. Mizuho lifted their price objective on shares of Red Hat from $125.00 to $140.00 and gave the stock a “buy” rating in a report on Wednesday. Barclays reissued a “buy” rating and issued a $145.00 price target on shares of Red Hat in a research note on Wednesday. KeyCorp reissued an “overweight” rating and issued a $135.00 price target (up from $125.00) on shares of Red Hat in a research note on Monday, December 4th. Finally, Bank of America reissued an “underperform” rating and issued a $115.00 price target on shares of Red Hat in a research note on Tuesday, October 24th. One analyst has rated the stock with a sell rating, nine have assigned a hold rating and twenty-four have given a buy rating to the company’s stock. Red Hat has an average rating of “Buy” and an average price target of $115.74.
Shares of Red Hat (NYSE:RHT) opened at $126.13 on Wednesday. Red Hat has a fifty-two week low of $68.54 and a fifty-two week high of $129.61. The company has a current ratio of 1.30, a quick ratio of 1.30 and a debt-to-equity ratio of 0.54. The stock has a market cap of $22,419.72, a price-to-earnings ratio of 69.09, a PEG ratio of 4.00 and a beta of 1.19.
Red Hat (NYSE:RHT) last posted its quarterly earnings data on Monday, September 25th. The open-source software company reported $0.77 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.67 by $0.10. Red Hat had a net margin of 11.49% and a return on equity of 25.27%. The company had revenue of $723.60 million during the quarter, compared to the consensus estimate of $699.56 million. During the same period in the previous year, the firm posted $0.55 EPS. The firm’s revenue was up 20.6% compared to the same quarter last year. research analysts predict that Red Hat will post 2 earnings per share for the current fiscal year.
In other news, insider Michael A. Kelly sold 2,888 shares of the stock in a transaction that occurred on Wednesday, October 18th. The shares were sold at an average price of $121.03, for a total transaction of $349,534.64. Following the sale, the insider now owns 8,751 shares in the company, valued at $1,059,133.53. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, EVP Delisa Alexander sold 1,073 shares of the stock in a transaction that occurred on Tuesday, October 17th. The shares were sold at an average price of $120.36, for a total transaction of $129,146.28. Following the sale, the executive vice president now owns 38,150 shares in the company, valued at approximately $4,591,734. The disclosure for this sale can be found here. In the last 90 days, insiders sold 34,172 shares of company stock worth $3,926,377. Corporate insiders own 0.66% of the company’s stock.
A number of institutional investors have recently modified their holdings of RHT. FMR LLC lifted its position in Red Hat by 10.8% during the second quarter. FMR LLC now owns 11,165,642 shares of the open-source software company’s stock valued at $1,069,110,000 after purchasing an additional 1,085,953 shares during the period. Swedbank bought a new position in Red Hat during the third quarter valued at approximately $115,424,000. American Century Companies Inc. raised its position in Red Hat by 6,697.1% in the third quarter. American Century Companies Inc. now owns 953,634 shares of the open-source software company’s stock worth $105,720,000 after acquiring an additional 939,604 shares during the period. Arrowstreet Capital Limited Partnership raised its position in Red Hat by 282.6% in the second quarter. Arrowstreet Capital Limited Partnership now owns 1,177,208 shares of the open-source software company’s stock worth $112,718,000 after acquiring an additional 869,550 shares during the period. Finally, Northern Trust Corp raised its position in Red Hat by 28.8% in the second quarter. Northern Trust Corp now owns 3,794,946 shares of the open-source software company’s stock worth $363,365,000 after acquiring an additional 848,777 shares during the period. Institutional investors own 93.85% of the company’s stock.
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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