Red Hat Inc. (RHT) Lifted to Buy at Zacks Investment Research
Red Hat Inc. (NYSE:RHT) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report released on Thursday. The brokerage currently has a $88.00 price target on the open-source software company’s stock. Zacks Investment Research’s target price suggests a potential upside of 11.90% from the stock’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. “
A number of other equities analysts also recently weighed in on the company. Mizuho reiterated a “buy” rating and issued a $88.00 target price on shares of Red Hat in a report on Friday, September 30th. Vetr upgraded Red Hat from a “hold” rating to a “buy” rating and set a $86.66 target price on the stock in a report on Monday, October 3rd. Robert W. Baird upped their target price on Red Hat from $85.00 to $90.00 and gave the company an “outperform” rating in a report on Friday, September 23rd. JMP Securities reiterated a “buy” rating on shares of Red Hat in a report on Thursday, September 22nd. Finally, Oppenheimer Holdings Inc. set a $88.00 target price on Red Hat and gave the company a “buy” rating in a report on Thursday, September 22nd. One investment analyst has rated the stock with a sell rating, five have issued a hold rating and twenty-five have assigned a buy rating to the company. Red Hat presently has an average rating of “Buy” and an average target price of $89.30.
Shares of Red Hat (NYSE:RHT) opened at 78.64 on Thursday. The stock has a market cap of $14.12 billion, a price-to-earnings ratio of 66.14 and a beta of 1.51. The stock’s 50 day moving average is $77.48 and its 200-day moving average is $75.30. Red Hat has a 1-year low of $59.59 and a 1-year high of $84.44.
Red Hat (NYSE:RHT) last posted its quarterly earnings data 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. The firm had revenue of $599.80 million for the quarter. Red Hat had a return on equity of 18.93% and a net margin of 9.84%. Red Hat’s quarterly revenue was up 19.0% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.47 EPS. On average, analysts anticipate that Red Hat will post $2.24 EPS for the current year.
In related news, EVP Delisa Alexander sold 1,121 shares of the firm’s stock in a transaction dated Tuesday, October 18th. The stock was sold at an average price of $77.00, for a total value of $86,317.00. Following the transaction, the executive vice president now owns 57,356 shares in the company, valued at $4,416,412. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director General Henry Hugh Shelton sold 15,000 shares of the firm’s stock in a transaction dated Friday, September 30th. The shares were sold at an average price of $80.70, for a total value of $1,210,500.00. Following the completion of the transaction, the director now owns 9,026 shares in the company, valued at approximately $728,398.20. The disclosure for this sale can be found here. 0.76% of the stock is owned by corporate insiders.
Institutional investors have recently bought and sold shares of the stock. Emerald Acquisition Ltd. purchased a new position in Red Hat during the second quarter valued at about $87,400,000. BlackRock Institutional Trust Company N.A. boosted its position in shares of Red Hat by 16.2% in the third quarter. BlackRock Institutional Trust Company N.A. now owns 5,407,019 shares of the open-source software company’s stock worth $437,049,000 after buying an additional 753,192 shares during the period. Smith Asset Management Group LP boosted 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 during the period. D. E. Shaw & Co. Inc. boosted its position in shares of Red Hat by 307.9% in the third quarter. D. E. Shaw & Co. Inc. now owns 797,406 shares of the open-source software company’s stock worth $64,454,000 after buying an additional 601,913 shares during the period. Finally, Bank of Montreal Can bought a new position in shares of Red Hat during the second quarter worth about $41,574,000. Institutional investors and hedge funds own 93.31% 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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