Red Hat Inc. (RHT) Upgraded to Buy by Zacks Investment Research
Red Hat Inc. (NYSE:RHT) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Wednesday. The firm presently has a $89.00 price target on the open-source software company’s stock. Zacks Investment Research’s price target would indicate a potential upside of 11.74% from the company’s current price.
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. “
Several other analysts have also weighed in on RHT. Barclays PLC restated an “overweight” rating and issued a $90.00 price objective on shares of Red Hat in a report on Wednesday, June 15th. Royal Bank Of Canada restated a “buy” rating on shares of Red Hat in a report on Thursday, June 16th. Deutsche Bank AG restated a “buy” rating on shares of Red Hat in a report on Friday, June 17th. Drexel Hamilton restated a “buy” rating and issued a $105.00 price objective on shares of Red Hat in a report on Monday, June 20th. Finally, BMO Capital Markets restated an “outperform” rating and issued a $85.00 price objective (down previously from $88.00) on shares of Red Hat in a report on Thursday, June 23rd. One analyst has rated the stock with a sell rating, five have assigned a hold rating and twenty-five have given a buy rating to the company’s stock. Red Hat currently has a consensus rating of “Buy” and a consensus price target of $89.33.
Red Hat (NYSE:RHT) remained flat at $79.65 during mid-day trading on Wednesday. 283,972 shares of the stock were exchanged. The stock’s 50-day moving average is $75.40 and its 200-day moving average is $74.71. Red Hat has a 12-month low of $59.59 and a 12-month high of $84.44. The stock has a market capitalization of $14.36 billion, a price-to-earnings ratio of 66.99 and a beta of 1.53.
Red Hat (NYSE:RHT) last released its quarterly earnings results on Wednesday, September 21st. The open-source software company reported $0.55 earnings per share (EPS) for the quarter, topping 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 company earned $599.80 million during the quarter. During the same period in the previous year, the company posted $0.47 EPS. The company’s revenue for the quarter was up 19.0% compared to the same quarter last year. On average, analysts anticipate that Red Hat will post $2.24 earnings per share for the current year.
In related news, EVP Michael Cunningham sold 10,000 shares of the stock in a transaction that occurred on Monday, July 11th. The stock was sold at an average price of $73.14, for a total transaction of $731,400.00. Following the completion of the sale, the executive vice president now owns 64,800 shares in the company, valued at approximately $4,739,472. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director William S. Kaiser sold 12,500 shares of the firm’s stock in a transaction that occurred on Monday, October 3rd. The stock was sold at an average price of $80.35, for a total value of $1,004,375.00. Following the completion of the sale, the director now owns 120,814 shares of the company’s stock, valued at approximately $9,707,404.90. The disclosure for this sale can be found here. Corporate insiders own 0.76% of the company’s stock.
Several hedge funds have recently made changes to their positions in the company. Wunderlich Capital Managemnt purchased a new stake in shares of Red Hat during the second quarter worth approximately $137,000. Mizuho Asset Management Co. Ltd. increased its stake in shares of Red Hat by 125.8% in the second quarter. Mizuho Asset Management Co. Ltd. now owns 2,393 shares of the open-source software company’s stock worth $174,000 after buying an additional 1,333 shares in the last quarter. Hills Bank & Trust Co. purchased a new stake in shares of Red Hat during the second quarter worth approximately $222,000. Pacer Advisors Inc. increased its stake in shares of Red Hat by 10.8% in the second quarter. Pacer Advisors Inc. now owns 3,392 shares of the open-source software company’s stock worth $246,000 after buying an additional 331 shares in the last quarter. Finally, Wall Street Associates purchased a new stake in shares of Red Hat during the second quarter worth approximately $247,000. Institutional investors own 94.81% of the company’s stock.
Red Hat Company Profile
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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