Red Hat, Inc. (RHT) Rating Lowered to Hold at Zacks Investment Research
Red Hat, Inc. (NYSE:RHT) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a report issued on Tuesday.
According to Zacks, “Red Hat is benefiting from strong deal win, improving recurring revenues and cross-selling of cloud-based technology. We believe that Amazon Web Services-OpenShift partnership extension reflects strength in Red Hat’s solutions and platform. The acquisition of Codenvy will boost its position in the hybrid cloud computing market. Further, the company has a strong customer as well as partner base that include the likes of IBM, Intel, Dell Technologies, Google cloud platform and Microsoft Azure. We note that the company has outperformed the industry on a year-to-date basis. However, intensifying competition, growing U.S. government exposure and foreign exchange volatility are some of the headwinds, in our view.”
RHT has been the subject of several other reports. Deutsche Bank AG upped their target price on Red Hat from $100.00 to $110.00 and gave the stock a “buy” rating in a report on Wednesday, June 21st. Oppenheimer Holdings, Inc. reiterated an “outperform” rating and issued a $96.00 target price (up from $94.00) on shares of Red Hat in a report on Wednesday, May 10th. Mizuho lowered their target price on Red Hat from $109.00 to $96.00 and set a “buy” rating for the company in a report on Wednesday, June 21st. Pacific Crest lowered their target price on Red Hat from $115.00 to $97.00 and set an “overweight” rating for the company in a report on Wednesday, June 21st. Finally, BTIG Research lowered their target price on Red Hat from $120.00 to $95.00 and set a “buy” rating for the company in a report on Wednesday, June 21st. Ten equities research analysts have rated the stock with a hold rating and twenty-three have given a buy rating to the company. The company presently has an average rating of “Buy” and a consensus price target of $98.72.
Shares of Red Hat (NYSE:RHT) opened at 104.00 on Tuesday. The stock has a 50 day moving average of $99.03 and a 200 day moving average of $89.94. The company has a market cap of $18.46 billion, a price-to-earnings ratio of 71.23 and a beta of 1.26. Red Hat has a 1-year low of $68.54 and a 1-year high of $105.21.
Red Hat (NYSE:RHT) last issued its earnings results on Tuesday, June 20th. The open-source software company reported $0.56 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.53 by $0.03. Red Hat had a return on equity of 22.84% and a net margin of 10.54%. The business had revenue of $677 million during the quarter, compared to analysts’ expectations of $647.42 million. During the same period in the prior year, the business earned $0.50 EPS. The business’s revenue for the quarter was up 19.2% compared to the same quarter last year. Analysts predict that Red Hat will post $2.68 EPS for the current year.
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In other news, EVP Paul J. Cormier sold 30,000 shares of the company’s stock in a transaction dated Friday, June 2nd. The stock was sold at an average price of $90.35, for a total value of $2,710,500.00. Following the sale, the executive vice president now owns 249,578 shares in the company, valued at $22,549,372.30. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Eric Ryan Shander sold 1,521 shares of the company’s stock in a transaction dated Wednesday, July 26th. The stock was sold at an average price of $99.98, for a total value of $152,069.58. Following the completion of the sale, the chief financial officer now owns 9,913 shares in the company, valued at approximately $991,101.74. The disclosure for this sale can be found here. Insiders sold 130,549 shares of company stock worth $12,133,438 in the last 90 days. Company insiders own 0.66% of the company’s stock.
Several hedge funds have recently modified their holdings of RHT. D.A. Davidson & CO. increased its stake in shares of Red Hat by 6.8% in the second quarter. D.A. Davidson & CO. now owns 1,071 shares of the open-source software company’s stock worth $102,000 after buying an additional 68 shares during the last quarter. Clear Perspective Advisors LLC bought a new stake in shares of Red Hat during the second quarter worth approximately $112,000. Sun Life Financial INC increased its stake in shares of Red Hat by 14,837.5% in the second quarter. Sun Life Financial INC now owns 1,195 shares of the open-source software company’s stock worth $114,000 after buying an additional 1,187 shares during the last quarter. Shine Investment Advisory Services Inc. bought a new stake in shares of Red Hat during the second quarter worth approximately $117,000. Finally, State of Alaska Department of Revenue bought a new stake in shares of Red Hat during the second quarter worth approximately $122,000. Hedge funds and other institutional investors own 93.23% 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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