Red Hat, Inc. (NYSE:RHT) shares gapped up before the market opened on Tuesday following a stronger than expected earnings report. The stock had previously closed at ($111.28), but opened at $0.00. Red Hat shares last traded at $0.00, with a volume of 6184525 shares trading hands.

The open-source software company reported $0.77 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.67 by $0.10. The company had revenue of $723.60 million for the quarter, compared to analysts’ expectations of $699.56 million. Red Hat had a net margin of 11.49% and a return on equity of 25.89%. The business’s revenue was up 20.6% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.55 EPS.

A number of equities research analysts recently weighed in on RHT shares. Barclays PLC upped their target price on shares of Red Hat from $105.00 to $120.00 and gave the stock an “overweight” rating in a report on Monday, September 18th. Bank of America Corporation restated a “neutral” rating and issued a $115.00 target price (up previously from $105.00) on shares of Red Hat in a report on Tuesday. Oppenheimer Holdings, Inc. restated an “outperform” rating and issued a $105.00 target price (up previously from $96.00) on shares of Red Hat in a report on Thursday, June 22nd. Wells Fargo & Company restated an “outperform” rating and issued a $124.00 target price (up previously from $120.00) on shares of Red Hat in a report on Wednesday. Finally, Piper Jaffray Companies started coverage on shares of Red Hat in a report on Friday, June 23rd. They issued a “neutral” rating and a $100.00 target price on the stock. Ten investment analysts have rated the stock with a hold rating and twenty-four have given a buy rating to the company. The company has an average rating of “Buy” and a consensus price target of $110.61.

In other Red Hat news, CEO James M. Whitehurst sold 12,000 shares of the firm’s stock in a transaction on Monday, July 3rd. The shares were sold at an average price of $95.70, for a total value of $1,148,400.00. Following the completion of the transaction, 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 can be accessed through the SEC website. Also, Director William S. Kaiser sold 4,006 shares of the firm’s stock in a transaction on Friday, June 30th. The shares were sold at an average price of $96.43, for a total transaction of $386,298.58. Following the completion of the transaction, the director now directly owns 91,808 shares of the company’s stock, valued at $8,853,045.44. The disclosure for this sale can be found here. Over the last three months, insiders sold 44,087 shares of company stock valued at $4,265,012. Insiders own 0.66% of the company’s stock.

A number of large investors have recently made changes to their positions in RHT. Mutual of America Capital Management LLC boosted its holdings in Red Hat by 4.6% in the 1st quarter. Mutual of America Capital Management LLC now owns 25,799 shares of the open-source software company’s stock valued at $2,232,000 after purchasing an additional 1,141 shares during the period. Baird Financial Group Inc. bought a new position in Red Hat in the 1st quarter valued at $266,000. Raymond James Financial Services Advisors Inc. boosted its holdings in Red Hat by 17.2% in the 1st quarter. Raymond James Financial Services Advisors Inc. now owns 10,023 shares of the open-source software company’s stock valued at $867,000 after purchasing an additional 1,472 shares during the period. Pacer Advisors Inc. boosted its holdings in Red Hat by 3.3% in the 1st quarter. Pacer Advisors Inc. now owns 3,462 shares of the open-source software company’s stock valued at $299,000 after purchasing an additional 110 shares during the period. Finally, Nordea Investment Management AB boosted its holdings in Red Hat by 1.0% in the 1st quarter. Nordea Investment Management AB now owns 6,919 shares of the open-source software company’s stock valued at $598,000 after purchasing an additional 70 shares during the period. 94.00% of the stock is owned by hedge funds and other institutional investors.

The stock has a market capitalization of $19.51 billion, a PE ratio of 75.29 and a beta of 1.24. The company’s 50-day moving average is $103.43 and its 200 day moving average is $93.28. Red Hat also was the target of unusually large options trading activity on Monday. Traders acquired 13,756 call options on the company. This represents an increase of 604% compared to the typical volume of 1,955 call options.

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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.

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