Red Hat (NYSE:RHT) had its price target lowered by Nomura from $182.00 to $175.00 in a research note issued to investors on Thursday, September 20th. Nomura currently has a buy rating on the open-source software company’s stock.
RHT has been the topic of several other reports. Royal Bank of Canada lowered their price target on Red Hat to $169.00 and set an outperform rating on the stock in a research report on Monday, September 17th. BMO Capital Markets lowered their price target on Red Hat from $192.00 to $177.00 and set a market perform rating on the stock in a research report on Wednesday, June 27th. JPMorgan Chase & Co. cut Red Hat from an overweight rating to a neutral rating and lowered their price target for the company from $160.00 to $150.00 in a research report on Tuesday, September 18th. Zacks Investment Research cut Red Hat from a buy rating to a hold rating in a research report on Wednesday, June 27th. Finally, Raymond James cut Red Hat from an outperform rating to a market perform rating and set a $84.00 price target on the stock. in a research report on Tuesday, June 19th. One investment analyst has rated the stock with a sell rating, eleven have assigned a hold rating and eighteen have assigned a buy rating to the company’s stock. Red Hat currently has a consensus rating of Buy and an average price target of $156.07.
NYSE:RHT opened at $122.51 on Thursday. The company has a debt-to-equity ratio of 0.40, a quick ratio of 1.28 and a current ratio of 1.23. Red Hat has a 52 week low of $116.31 and a 52 week high of $177.70. The company has a market cap of $24.17 billion, a price-to-earnings ratio of 53.27, a PEG ratio of 3.54 and a beta of 1.14.
Red Hat (NYSE:RHT) last announced its quarterly earnings results on Wednesday, September 19th. The open-source software company reported $0.85 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.82 by $0.03. The business had revenue of $822.75 million for the quarter, compared to the consensus estimate of $828.12 million. Red Hat had a return on equity of 31.80% and a net margin of 9.15%. The business’s revenue was up 13.7% on a year-over-year basis. During the same quarter last year, the business posted $0.77 EPS. On average, research analysts forecast that Red Hat will post 2.57 earnings per share for the current fiscal year.
Red Hat announced that its board has initiated a share repurchase plan on Thursday, June 21st that permits the company to buyback $1.00 billion in shares. This buyback authorization permits the open-source software company to reacquire up to 4% of its shares through open market purchases. Shares buyback plans are typically an indication that the company’s management believes its shares are undervalued.
In related news, insider Michael A. Kelly sold 636 shares of Red Hat stock in a transaction on Tuesday, July 17th. The stock was sold at an average price of $145.00, for a total transaction of $92,220.00. Following the completion of the sale, the insider now owns 5,965 shares of the company’s stock, valued at $864,925. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, CEO James M. Whitehurst sold 44,472 shares of Red Hat stock in a transaction on Tuesday, August 7th. The shares were sold at an average price of $142.56, for a total value of $6,339,928.32. Following the sale, the chief executive officer now directly owns 445,557 shares of the company’s stock, valued at approximately $63,518,605.92. The disclosure for this sale can be found here. In the last three months, insiders have sold 56,926 shares of company stock valued at $8,145,758. Insiders own 0.58% of the company’s stock.
Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Signature Financial Management Inc. raised its holdings in Red Hat by 132.3% during the second quarter. Signature Financial Management Inc. now owns 5,048 shares of the open-source software company’s stock valued at $678,000 after buying an additional 2,875 shares in the last quarter. Twin Capital Management Inc. bought a new position in Red Hat during the second quarter valued at about $1,956,000. Sigma Planning Corp raised its holdings in Red Hat by 424.0% during the second quarter. Sigma Planning Corp now owns 12,376 shares of the open-source software company’s stock valued at $1,663,000 after buying an additional 10,014 shares in the last quarter. Flagship Harbor Advisors LLC raised its holdings in Red Hat by 76.8% during the second quarter. Flagship Harbor Advisors LLC now owns 2,456 shares of the open-source software company’s stock valued at $330,000 after buying an additional 1,067 shares in the last quarter. Finally, OppenheimerFunds Inc. raised its holdings in Red Hat by 393.0% during the first quarter. OppenheimerFunds Inc. now owns 1,230,188 shares of the open-source software company’s stock valued at $183,925,000 after buying an additional 980,635 shares in the last quarter. 95.25% of the stock is owned by hedge funds and other institutional investors.
Red Hat Company Profile
Red Hat, Inc provides open source software solutions to develop and offer operating system, virtualization, management, middleware, cloud, mobile, and storage technologies to various enterprises worldwide. It offers infrastructure-related solutions, such as Red Hat Enterprise Linux, an operating system platform that runs on hardware for use in hybrid cloud environments; Red Hat Satellite, a system management offering that helps to deploy, scale, and manage in hybrid cloud environments; and Red Hat Enterprise Virtualization, a software solution that allows customers to utilize and manage a common hardware infrastructure to run multiple operating systems and applications.
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