Zacks Investment Research upgraded shares of Red Hat Inc. (NYSE:RHT) from a hold rating to a buy rating in a report issued on Wednesday. Zacks Investment Research currently has $89.00 target price on the open-source software company’s stock.
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 equities analysts have also recently weighed in on the company. Vetr cut Red Hat from a strong-buy rating to a buy rating and set a $84.24 price target on the stock. in a research note on Wednesday, June 1st. Oppenheimer Holdings Inc. reissued a buy rating and issued a $88.00 price target on shares of Red Hat in a research note on Monday, June 6th. Barclays PLC reissued an overweight rating and issued a $90.00 price target on shares of Red Hat in a research note on Wednesday, June 15th. Royal Bank Of Canada reissued a buy rating on shares of Red Hat in a research note on Thursday, June 16th. Finally, Deutsche Bank AG reissued a buy rating on shares of Red Hat in a research note on Friday, June 17th. One investment analyst has rated the stock with a sell rating, six have assigned 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 an average target price of $89.33.
Red Hat (NYSE:RHT) opened at 80.20 on Wednesday. The company has a 50-day moving average of $75.24 and a 200 day moving average of $74.67. Red Hat has a 12-month low of $59.59 and a 12-month high of $84.44. The stock has a market cap of $14.46 billion, a price-to-earnings ratio of 67.45 and a beta of 1.52.
Red Hat (NYSE:RHT) last released its earnings results on Wednesday, September 21st. The open-source software company reported $0.55 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.54 by $0.01. The firm had revenue of $599.80 million for the quarter. Red Hat had a return on equity of 18.93% and a net margin of 9.84%. Red Hat’s revenue was up 19.0% on a year-over-year basis. During the same period in the previous year, the firm earned $0.47 earnings per share. Equities analysts anticipate that Red Hat will post $2.24 earnings per share for the current year.
In other Red Hat news, EVP Delisa Alexander sold 2,395 shares of the business’s stock in a transaction on Tuesday, July 19th. The stock was sold at an average price of $72.83, for a total value of $174,427.85. Following the transaction, the executive vice president now owns 60,780 shares of the company’s stock, valued at $4,426,607.40. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, EVP Michael Cunningham sold 10,000 shares of the business’s stock in a transaction on Tuesday, July 26th. The stock was sold at an average price of $75.00, for a total value of $750,000.00. Following the completion of the transaction, the executive vice president now directly owns 52,484 shares in the company, valued at approximately $3,936,300. The disclosure for this sale can be found here. 0.76% of the stock is owned by company insiders.
Several institutional investors have recently modified their holdings of the stock. Emerald Acquisition Ltd. purchased a new position in shares of Red Hat during the second quarter valued at about $87,400,000. UBS Asset Management Americas Inc. raised its position in shares of Red Hat by 155.1% in the first quarter. UBS Asset Management Americas Inc. now owns 1,227,508 shares of the open-source software company’s stock valued at $91,461,000 after buying an additional 746,414 shares during the period. Smith Asset Management Group LP raised its position in shares of Red Hat by 219.6% in the second quarter. Smith Asset Management Group LP now owns 972,049 shares of the open-source software company’s stock valued at $70,571,000 after buying an additional 667,933 shares during the period. Bank of Montreal Can purchased a new position in shares of Red Hat during the second quarter valued at about $41,574,000. Finally, FMR LLC raised its position in shares of Red Hat by 5.1% in the second quarter. FMR LLC now owns 11,463,375 shares of the open-source software company’s stock valued at $832,240,000 after buying an additional 558,296 shares during the period. 94.81% of the stock is currently owned by institutional investors and hedge funds.
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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