Zacks Investment Research lowered shares of Red Hat Inc. (NYSE:RHT) from a buy rating to a hold rating in a report released on Tuesday.

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 analysts have also recently weighed in on the stock. Vetr upgraded shares of Red Hat from a hold rating to a buy rating and set a $86.66 price objective for the company in a research note on Monday, October 3rd. Mizuho restated a buy rating and issued a $88.00 price objective on shares of Red Hat in a research note on Friday, September 30th. MKM Partners restated a neutral rating and issued a $75.00 price objective on shares of Red Hat in a research note on Friday, September 23rd. Raymond James Financial Inc. restated an outperform rating and issued a $90.00 price objective (up from $85.00) on shares of Red Hat in a research note on Friday, September 23rd. Finally, restated a buy rating and issued a $99.00 price objective on shares of Red Hat in a research note on Friday, September 23rd. One investment analyst has rated the stock with a sell rating, six have given a hold rating and twenty-four have assigned a buy rating to the company’s stock. The company presently has an average rating of Buy and a consensus target price of $89.30.

Analyst Recommendations for Red Hat (NYSE:RHT)

Red Hat (NYSE:RHT) opened at 79.13 on Tuesday. The firm has a market capitalization of $14.21 billion, a price-to-earnings ratio of 66.55 and a beta of 1.51. The firm’s 50-day moving average is $77.37 and its 200 day moving average is $75.53. Red Hat has a one year low of $59.59 and a one year high of $84.44.

Red Hat (NYSE:RHT) last issued its quarterly earnings data on Wednesday, September 21st. The open-source software company reported $0.55 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.54 by $0.01. Red Hat had a net margin of 9.84% and a return on equity of 18.93%. The business earned $599.80 million during the quarter. During the same quarter in the previous year, the firm posted $0.47 earnings per share. Red Hat’s quarterly revenue was up 19.0% compared to the same quarter last year. Analysts forecast that Red Hat will post $2.24 EPS for the current fiscal year.

In related news, Director General Henry Hugh Shelton sold 15,000 shares of the firm’s stock in a transaction that occurred on Friday, September 30th. The stock was sold at an average price of $80.70, for a total transaction of $1,210,500.00. Following the transaction, the director now directly owns 9,026 shares in the company, valued at approximately $728,398.20. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, EVP Delisa Alexander sold 1,121 shares of the firm’s stock in a transaction that occurred on 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 disclosure for this sale can be found here. Corporate insiders own 0.76% of the company’s stock.

A number of institutional investors have recently bought and sold shares of RHT. ETRADE Capital Management LLC raised its position in Red Hat by 71.7% in the third quarter. ETRADE Capital Management LLC now owns 7,047 shares of the open-source software company’s stock valued at $570,000 after buying an additional 2,942 shares during the last quarter. Piedmont Investment Advisors LLC bought a new position in Red Hat during the third quarter valued at about $747,000. Price T Rowe Associates Inc. MD raised its position in Red Hat by 24.3% in the third quarter. Price T Rowe Associates Inc. MD now owns 20,244,633 shares of the open-source software company’s stock valued at $1,636,374,000 after buying an additional 3,954,374 shares during the last quarter. Quantitative Systematic Strategies LLC bought a new position in Red Hat during the third quarter valued at about $208,000. Finally, LPL Financial LLC raised its position in Red Hat by 369.1% in the third quarter. LPL Financial LLC now owns 30,152 shares of the open-source software company’s stock valued at $2,402,000 after buying an additional 23,724 shares during the last quarter. Institutional investors and hedge funds own 94.94% of the company’s stock.

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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.

5 Day Chart for NYSE:RHT

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