Wall Street brokerages predict that Red Hat Inc (NYSE:RHT) will announce earnings per share (EPS) of $0.86 for the current fiscal quarter, Zacks reports. Twelve analysts have issued estimates for Red Hat’s earnings, with estimates ranging from $0.81 to $0.93. Red Hat reported earnings per share of $0.77 during the same quarter last year, which would suggest a positive year over year growth rate of 11.7%. The firm is scheduled to report its next quarterly earnings results on Monday, September 24th.
According to Zacks, analysts expect that Red Hat will report full year earnings of $3.42 per share for the current financial year, with EPS estimates ranging from $3.39 to $3.47. For the next financial year, analysts forecast that the business will report earnings of $3.97 per share, with EPS estimates ranging from $3.75 to $4.15. Zacks’ EPS calculations are an average based on a survey of sell-side research analysts that follow Red Hat.
Red Hat (NYSE:RHT) last released its quarterly earnings data on Thursday, June 21st. The open-source software company reported $0.72 EPS for the quarter, beating analysts’ consensus estimates of $0.69 by $0.03. Red Hat had a return on equity of 30.40% and a net margin of 9.77%. The business had revenue of $813.53 million for the quarter, compared to the consensus estimate of $807.48 million. During the same quarter in the prior year, the business posted $0.56 EPS. The business’s revenue for the quarter was up 20.2% on a year-over-year basis.
RHT has been the topic of a number of recent analyst reports. Mizuho downgraded Red Hat from a “buy” rating to a “neutral” rating and increased their price objective for the company from $140.00 to $160.00 in a report on Monday, March 12th. Barclays increased their price objective on Red Hat from $145.00 to $165.00 and gave the company an “overweight” rating in a report on Monday, March 19th. Royal Bank of Canada increased their price objective on Red Hat to $160.00 and gave the company an “outperform” rating in a report on Wednesday, March 21st. Citigroup increased their price objective on Red Hat to $179.00 and gave the company a “buy” rating in a report on Thursday, March 22nd. Finally, Raymond James increased their price objective on Red Hat from $139.00 to $164.00 and gave the company an “outperform” rating in a report on Thursday, March 22nd. One analyst has rated the stock with a sell rating, ten have given a hold rating and twenty-one have assigned a buy rating to the stock. The company presently has an average rating of “Buy” and a consensus target price of $158.33.
Shares of Red Hat traded down $0.32, reaching $139.45, during mid-day trading on Thursday, according to MarketBeat Ratings. The company’s stock had a trading volume of 155,409 shares, compared to its average volume of 2,288,374. Red Hat has a 12-month low of $94.47 and a 12-month high of $177.70. The company has a market cap of $25.25 billion, a P/E ratio of 60.50, a PEG ratio of 3.53 and a beta of 1.07. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.36 and a current ratio of 1.28.
Red Hat announced that its board has authorized a share repurchase program on Thursday, June 21st that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the open-source software company to purchase up to 4% of its shares through open market purchases. Shares buyback programs are generally a sign that the company’s management believes its shares are undervalued.
In other news, EVP Arun Oberoi sold 15,000 shares of the firm’s stock in a transaction that occurred on Monday, April 9th. The stock was sold at an average price of $153.58, for a total value of $2,303,700.00. Following the completion of the sale, the executive vice president now directly owns 74,457 shares of the company’s stock, valued at approximately $11,435,106.06. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO James M. Whitehurst sold 39,751 shares of the firm’s stock in a transaction that occurred on Friday, April 20th. The shares were sold at an average price of $159.29, for a total value of $6,331,936.79. Following the completion of the sale, the chief executive officer now directly owns 349,813 shares of the company’s stock, valued at $55,721,712.77. The disclosure for this sale can be found here. Insiders have sold a total of 107,376 shares of company stock valued at $17,167,724 over the last ninety days. 0.66% of the stock is owned by insiders.
Several institutional investors and hedge funds have recently bought and sold shares of RHT. Candriam Luxembourg S.C.A. lifted its holdings in shares of Red Hat by 9.8% in the 4th quarter. Candriam Luxembourg S.C.A. now owns 16,056 shares of the open-source software company’s stock valued at $1,928,000 after buying an additional 1,435 shares during the period. The Manufacturers Life Insurance Company lifted its holdings in shares of Red Hat by 33.6% in the 4th quarter. The Manufacturers Life Insurance Company now owns 232,491 shares of the open-source software company’s stock valued at $27,922,000 after buying an additional 58,508 shares during the period. Global X Management Co. LLC lifted its holdings in shares of Red Hat by 48.2% in the 4th quarter. Global X Management Co. LLC now owns 2,498 shares of the open-source software company’s stock valued at $300,000 after buying an additional 813 shares during the period. Pinebridge Investments L.P. lifted its holdings in shares of Red Hat by 3,131.4% in the 4th quarter. Pinebridge Investments L.P. now owns 8,531 shares of the open-source software company’s stock valued at $1,024,000 after buying an additional 8,267 shares during the period. Finally, Arizona State Retirement System lifted its holdings in shares of Red Hat by 22.8% in the 4th quarter. Arizona State Retirement System now owns 67,101 shares of the open-source software company’s stock valued at $8,059,000 after buying an additional 12,465 shares during the period. 95.28% of the stock is owned by institutional investors and hedge funds.
About Red Hat
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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