KeyCorp Weighs in on Red Hat Inc’s FY2018 Earnings (NYSE:RHT)

Red Hat Inc (NYSE:RHT) – Investment analysts at KeyCorp raised their FY2018 earnings per share (EPS) estimates for shares of Red Hat in a research report issued on Wednesday, Zacks Investment Research reports. KeyCorp analyst A. Kurtz now anticipates that the open-source software company will earn $2.10 per share for the year, up from their previous forecast of $2.02. KeyCorp has a “Overweight” rating and a $135.00 price target on the stock. KeyCorp also issued estimates for Red Hat’s Q4 2018 earnings at $0.61 EPS and FY2019 earnings at $2.52 EPS.

Red Hat (NYSE:RHT) last issued its earnings results on Tuesday, December 19th. The open-source software company reported $0.73 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.70 by $0.03. Red Hat had a net margin of 12.14% and a return on equity of 26.23%. The firm had revenue of $747.98 million during the quarter, compared to the consensus estimate of $734.69 million. During the same quarter in the prior year, the firm earned $0.61 earnings per share. The business’s quarterly revenue was up 21.6% on a year-over-year basis.

Several other equities research analysts also recently commented on RHT. Barclays upped their target price on shares of Red Hat from $105.00 to $120.00 and gave the company an “overweight” rating in a research note on Monday, September 18th. Drexel Hamilton reaffirmed a “buy” rating and issued a $127.00 target price on shares of Red Hat in a research note on Tuesday, September 19th. Wells Fargo & Co reaffirmed an “outperform” rating and issued a $120.00 target price (up previously from $115.00) on shares of Red Hat in a research note on Tuesday, September 19th. Royal Bank of Canada upped their target price on shares of Red Hat from $106.00 to $121.00 and gave the company an “outperform” rating in a research note on Wednesday, September 20th. Finally, Stifel Nicolaus reaffirmed a “buy” rating and issued a $115.00 target price on shares of Red Hat in a research note on Wednesday, September 20th. One equities research analyst has rated the stock with a sell rating, ten have assigned a hold rating and twenty-two have assigned a buy rating to the company’s stock. The stock presently has an average rating of “Buy” and an average target price of $124.25.

Shares of Red Hat (NYSE:RHT) opened at $125.95 on Friday. Red Hat has a 12 month low of $71.50 and a 12 month high of $130.93. The company has a quick ratio of 1.30, a current ratio of 1.37 and a debt-to-equity ratio of 0.53. The company has a market cap of $22,290.00, a P/E ratio of 68.45, a price-to-earnings-growth ratio of 3.85 and a beta of 1.19.

In related news, EVP Delisa Alexander sold 1,073 shares of the stock in a transaction on Tuesday, October 17th. The shares were sold at an average price of $120.36, for a total transaction of $129,146.28. Following the completion of the transaction, the executive vice president now owns 38,150 shares in the company, valued at $4,591,734. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO James M. Whitehurst sold 4,211 shares of the stock in a transaction on Tuesday, October 17th. The shares were sold at an average price of $120.36, for a total transaction of $506,835.96. Following the completion of the sale, the chief executive officer now owns 380,158 shares of the company’s stock, valued at approximately $45,755,816.88. The disclosure for this sale can be found here. Insiders have sold 8,172 shares of company stock valued at $985,517 in the last 90 days. 0.66% of the stock is currently owned by corporate insiders.

Hedge funds have recently made changes to their positions in the business. Tredje AP fonden acquired a new stake in Red Hat in the third quarter valued at $345,000. Commonwealth of Pennsylvania Public School Empls Retrmt SYS lifted its stake in Red Hat by 9.3% in the third quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 14,432 shares of the open-source software company’s stock valued at $1,600,000 after acquiring an additional 1,224 shares during the last quarter. State of Wisconsin Investment Board lifted its stake in Red Hat by 22.4% in the third quarter. State of Wisconsin Investment Board now owns 264,085 shares of the open-source software company’s stock valued at $29,276,000 after acquiring an additional 48,339 shares during the last quarter. Great West Life Assurance Co. Can lifted its stake in Red Hat by 38.6% in the third quarter. Great West Life Assurance Co. Can now owns 174,899 shares of the open-source software company’s stock valued at $19,201,000 after acquiring an additional 48,695 shares during the last quarter. Finally, Sumitomo Mitsui Trust Holdings Inc. lifted its stake in Red Hat by 17.6% in the second quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 576,206 shares of the open-source software company’s stock valued at $55,172,000 after acquiring an additional 86,292 shares during the last quarter. Hedge funds and other institutional investors own 93.57% of the company’s stock.

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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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