Zacks Investment Research upgraded shares of Red Hat Inc. (NYSE:RHT) from a hold rating to a buy rating in a research report released on Wednesday. The firm 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. “
RHT has been the subject of several other research reports. Robert W. Baird upped their price target on Red Hat from $85.00 to $90.00 and gave the stock an outperform rating in a research note on Friday, September 23rd. BMO Capital Markets restated an outperform rating and set a $85.00 target price (down previously from $88.00) on shares of Red Hat in a research note on Thursday, June 23rd. Mizuho restated a buy rating and set a $88.00 target price on shares of Red Hat in a research note on Wednesday, September 21st. Stifel Nicolaus restated a buy rating on shares of Red Hat in a research note on Thursday, June 23rd. Finally, Oppenheimer Holdings Inc. set a $88.00 target price on Red Hat and gave the company a buy rating in a research note on Thursday, September 22nd. One analyst has rated the stock with a sell rating, five have assigned a hold rating and twenty-five have assigned a buy rating to the company’s stock. Red Hat currently has a consensus rating of Buy and a consensus target price of $89.33.
Red Hat (NYSE:RHT) opened at 77.99 on Wednesday. The company has a market capitalization of $14.01 billion, a P/E ratio of 65.59 and a beta of 1.52. The company’s 50-day moving average price is $75.95 and its 200-day moving average price is $74.84. Red Hat has a 52 week low of $59.59 and a 52 week high of $84.44.
Red Hat (NYSE:RHT) last released its quarterly earnings results on Wednesday, September 21st. The open-source software company reported $0.55 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.54 by $0.01. The company earned $599.80 million during the quarter. Red Hat had a return on equity of 18.93% and a net margin of 9.84%. The business’s revenue was up 19.0% compared to the same quarter last year. During the same quarter last year, the company posted $0.47 EPS. On average, equities analysts forecast that Red Hat will post $2.24 EPS for the current fiscal year.
In other Red Hat news, EVP Delisa Alexander sold 2,395 shares of Red Hat stock in a transaction dated Tuesday, July 19th. The stock was sold at an average price of $72.83, for a total value of $174,427.85. Following the sale, the executive vice president now owns 60,780 shares of the company’s stock, valued at approximately $4,426,607.40. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director William S. Kaiser sold 12,500 shares of Red Hat stock in a transaction dated Monday, October 3rd. The shares were sold at an average price of $80.35, for a total value of $1,004,375.00. Following the completion of the sale, the director now directly owns 120,814 shares in the company, valued at approximately $9,707,404.90. The disclosure for this sale can be found here. 0.76% of the stock is owned by company insiders.
Several hedge funds have recently added to or reduced their stakes in RHT. Wunderlich Capital Managemnt purchased a new stake in Red Hat during the second quarter valued at about $137,000. Mizuho Asset Management Co. Ltd. increased its stake in Red Hat by 125.8% in the second quarter. Mizuho Asset Management Co. Ltd. now owns 2,393 shares of the open-source software company’s stock valued at $174,000 after buying an additional 1,333 shares in the last quarter. Hills Bank & Trust Co. purchased a new stake in Red Hat during the second quarter valued at about $222,000. Pacer Advisors Inc. increased its stake in Red Hat by 10.8% in the second quarter. Pacer Advisors Inc. now owns 3,392 shares of the open-source software company’s stock valued at $246,000 after buying an additional 331 shares in the last quarter. Finally, Wall Street Associates purchased a new stake in Red Hat during the second quarter valued at about $247,000. 94.82% of the stock is currently owned by hedge funds and other institutional investors.
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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