Red Hat (NYSE:RHT) had its target price cut by Royal Bank of Canada to $169.00 in a report published on Monday, The Fly reports. They currently have an outperform rating on the open-source software company’s stock.
Other equities research analysts also recently issued research reports about the company. Zacks Investment Research raised Red Hat from a hold rating to a buy rating and set a $159.00 price target for the company in a research report on Tuesday, June 26th. Cowen reissued a buy rating and set a $165.00 price target on shares of Red Hat in a research report on Tuesday, June 26th. ValuEngine downgraded Red Hat from a strong-buy rating to a buy rating in a research report on Friday, June 22nd. Monness Crespi & Hardt decreased their target price on Red Hat from $200.00 to $186.00 and set a buy rating for the company in a research report on Friday, June 22nd. Finally, UBS Group reaffirmed a buy rating and issued a $170.00 target price on shares of Red Hat in a research report on Friday, June 22nd. One equities research analyst has rated the stock with a sell rating, eleven have given a hold rating and twenty have issued a buy rating to the company’s stock. Red Hat presently has an average rating of Buy and a consensus price target of $157.77.
RHT stock opened at $144.37 on Monday. Red Hat has a 12-month low of $104.51 and a 12-month high of $177.70. The company has a quick ratio of 1.28, a current ratio of 1.28 and a debt-to-equity ratio of 0.39. The stock has a market cap of $26.94 billion, a price-to-earnings ratio of 62.77, a PEG ratio of 3.56 and a beta of 1.07.
Red Hat (NYSE:RHT) last posted its quarterly earnings results on Thursday, June 21st. The open-source software company reported $0.72 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.69 by $0.03. Red Hat had a return on equity of 30.40% and a net margin of 9.77%. The firm had revenue of $813.53 million during the quarter, compared to the consensus estimate of $807.48 million. During the same quarter in the previous year, the business earned $0.56 earnings per share. The firm’s quarterly revenue was up 20.2% compared to the same quarter last year. research analysts anticipate that Red Hat will post 2.56 earnings per share for the current year.
Red Hat declared that its board has approved a stock buyback program on Thursday, June 21st that allows the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization allows the open-source software company to reacquire up to 4% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company’s board believes its stock is undervalued.
In related news, CEO James M. Whitehurst sold 44,472 shares of the business’s stock in a transaction dated Tuesday, August 7th. The stock was sold at an average price of $142.56, for a total value of $6,339,928.32. Following the transaction, the chief executive officer now owns 445,557 shares in the company, valued at $63,518,605.92. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, EVP Delisa Alexander sold 2,305 shares of the business’s stock in a transaction dated Tuesday, July 17th. The stock was sold at an average price of $145.00, for a total value of $334,225.00. Following the completion of the transaction, the executive vice president now owns 36,309 shares in the company, valued at approximately $5,264,805. The disclosure for this sale can be found here. In the last quarter, insiders sold 56,926 shares of company stock worth $8,145,758. Insiders own 0.58% of the company’s stock.
Several large investors have recently added to or reduced their stakes in RHT. OppenheimerFunds Inc. lifted its stake in shares of Red Hat by 393.0% in the first quarter. OppenheimerFunds Inc. now owns 1,230,188 shares of the open-source software company’s stock worth $183,925,000 after acquiring an additional 980,635 shares in the last quarter. Janus Henderson Group PLC lifted its stake in shares of Red Hat by 64.9% in the second quarter. Janus Henderson Group PLC now owns 2,162,044 shares of the open-source software company’s stock worth $290,527,000 after acquiring an additional 850,715 shares in the last quarter. Old Mutual Global Investors UK Ltd. raised its stake in Red Hat by 88.0% during the first quarter. Old Mutual Global Investors UK Ltd. now owns 1,515,991 shares of the open-source software company’s stock valued at $226,655,000 after buying an additional 709,410 shares in the last quarter. Cornerstone Wealth Management LLC raised its stake in Red Hat by 13,666.2% during the second quarter. Cornerstone Wealth Management LLC now owns 713,364 shares of the open-source software company’s stock valued at $5,233,000 after buying an additional 708,182 shares in the last quarter. Finally, Whale Rock Capital Management LLC acquired a new stake in Red Hat during the first quarter valued at approximately $57,172,000. Institutional investors and hedge funds own 95.23% of the company’s stock.
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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