Investors Buy Shares of Red Hat, Inc. (RHT) on Weakness
Traders bought shares of Red Hat, Inc. (NYSE:RHT) on weakness during trading on Wednesday. $74.18 million flowed into the stock on the tick-up and $56.29 million flowed out of the stock on the tick-down, for a money net flow of $17.89 million into the stock. Of all stocks tracked, Red Hat had the 22nd highest net in-flow for the day. Red Hat traded down ($0.15) for the day and closed at $109.92
A number of research firms have recently commented on RHT. Zacks Investment Research cut Red Hat from a “strong-buy” rating to a “hold” rating in a report on Tuesday, August 22nd. Drexel Hamilton reissued a “buy” rating and set a $127.00 price target (up previously from $110.00) on shares of Red Hat in a report on Wednesday, June 21st. Piper Jaffray Companies reissued a “hold” rating and set a $100.00 price target on shares of Red Hat in a report on Sunday, August 27th. Credit Suisse Group began coverage on Red Hat in a report on Tuesday, September 5th. They set a “neutral” rating and a $111.00 price target for the company. Finally, KeyCorp reissued an “overweight” rating and set a $121.00 price target on shares of Red Hat in a report on Friday, September 8th. Ten analysts have rated the stock with a hold rating and twenty-four have assigned a buy rating to the stock. Red Hat has a consensus rating of “Buy” and a consensus price target of $110.61.
The stock has a 50-day moving average of $103.43 and a 200 day moving average of $93.28. The stock has a market cap of $19.51 billion, a price-to-earnings ratio of 75.29 and a beta of 1.24. Red Hat also was the target of some unusual options trading on Monday. Traders acquired 13,756 call options on the stock. This is an increase of 604% compared to the average volume of 1,955 call options.
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 for the quarter, beating the Thomson Reuters’ consensus estimate of $0.67 by $0.10. The business had revenue of $723.60 million for the quarter, compared to analysts’ expectations of $699.56 million. Red Hat had a return on equity of 25.89% and a net margin of 11.49%. The business’s revenue was up 20.6% on a year-over-year basis. During the same period in the previous year, the firm posted $0.55 EPS. Equities research analysts expect that Red Hat, Inc. will post $2.79 EPS for the current year.
In other news, CEO James M. Whitehurst sold 12,000 shares of the business’s stock in a transaction that occurred on Monday, July 3rd. The stock was sold at an average price of $95.70, for a total value of $1,148,400.00. Following the sale, the chief executive officer now directly owns 422,873 shares of the company’s stock, valued at approximately $40,468,946.10. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, CEO James M. Whitehurst sold 9,122 shares of the business’s stock in a transaction that occurred on Tuesday, July 18th. The stock was sold at an average price of $98.02, for a total value of $894,138.44. Following the completion of the sale, the chief executive officer now directly owns 414,101 shares in the company, valued at $40,590,180.02. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 44,087 shares of company stock worth $4,265,012. Insiders own 0.66% of the company’s stock.
Institutional investors and hedge funds have recently modified their holdings of the company. D.A. Davidson & CO. boosted its position in shares of Red Hat by 6.8% in the 2nd quarter. D.A. Davidson & CO. now owns 1,071 shares of the open-source software company’s stock worth $102,000 after purchasing an additional 68 shares in the last quarter. Clear Perspective Advisors LLC bought a new stake in shares of Red Hat in the 2nd quarter worth approximately $112,000. Sun Life Financial INC boosted its position in shares of Red Hat by 14,837.5% in the 2nd quarter. Sun Life Financial INC now owns 1,195 shares of the open-source software company’s stock worth $114,000 after purchasing an additional 1,187 shares in the last quarter. Shine Investment Advisory Services Inc. bought a new stake in shares of Red Hat in the 2nd quarter worth approximately $117,000. Finally, State of Alaska Department of Revenue bought a new stake in shares of Red Hat in the 2nd quarter worth approximately $122,000. 94.00% of the stock is currently owned by hedge funds and other institutional investors.
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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