Red Hat (RHT) Rating Increased to Strong-Buy at ValuEngine

ValuEngine upgraded shares of Red Hat (NYSE:RHT) from a buy rating to a strong-buy rating in a research report sent to investors on Monday morning.

A number of other equities analysts have also recently issued reports on the company. Royal Bank of Canada increased their target price on Red Hat to $190.00 in a report on Monday. Jefferies Financial Group increased their target price on Red Hat from $140.00 to $190.00 and gave the stock a hold rating in a report on Monday. Northland Securities cut Red Hat from an outperform rating to a market perform rating in a report on Monday. Credit Suisse Group set a $190.00 price objective on shares of Red Hat and gave the stock a hold rating in a research note on Monday. Finally, Deutsche Bank downgraded shares of Red Hat from a buy rating to a hold rating and increased their price objective for the stock from $170.00 to $190.00 in a research note on Monday. One research analyst has rated the stock with a sell rating, fifteen have given a hold rating, fourteen have issued a buy rating and one has issued a strong buy rating to the company’s stock. The company presently has an average rating of Hold and a consensus target price of $163.48.

RHT stock traded up $0.07 during trading hours on Monday, reaching $172.47. 2,296,997 shares of the stock were exchanged, compared to its average volume of 3,691,882. The stock has a market cap of $29.92 billion, a PE ratio of 74.99, a price-to-earnings-growth ratio of 4.41 and a beta of 1.14. The company has a current ratio of 1.23, a quick ratio of 1.23 and a debt-to-equity ratio of 0.40. Red Hat has a 12 month low of $115.31 and a 12 month high of $177.70.

Red Hat (NYSE:RHT) last released its earnings results on Wednesday, September 19th. The open-source software company reported $0.85 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.82 by $0.03. The firm had revenue of $822.75 million during the quarter, compared to analysts’ expectations of $828.12 million. Red Hat had a return on equity of 31.80% and a net margin of 9.15%. The company’s revenue was up 13.7% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.77 EPS. On average, analysts forecast that Red Hat will post 2.57 earnings per share for the current fiscal year.

In related news, EVP Delisa Alexander sold 960 shares of the firm’s stock in a transaction dated Wednesday, October 17th. The shares were sold at an average price of $125.03, for a total value of $120,028.80. Following the completion of the sale, the executive vice president now directly owns 33,217 shares in the company, valued at approximately $4,153,121.51. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO James M. Whitehurst sold 44,472 shares of the firm’s stock in a transaction dated Tuesday, August 7th. The shares were sold at an average price of $142.56, for a total transaction of $6,339,928.32. Following the completion of the sale, the chief executive officer now owns 445,557 shares of the company’s stock, valued at $63,518,605.92. The disclosure for this sale can be found here. Insiders sold a total of 48,103 shares of company stock valued at $6,793,912 over the last quarter. 0.58% of the stock is currently owned by company insiders.

Large investors have recently modified their holdings of the stock. Mount Yale Investment Advisors LLC acquired a new stake in Red Hat in the 1st quarter valued at about $103,000. Migdal Insurance & Financial Holdings Ltd. lifted its stake in Red Hat by 16,350.0% in the 2nd quarter. Migdal Insurance & Financial Holdings Ltd. now owns 987 shares of the open-source software company’s stock valued at $133,000 after purchasing an additional 981 shares during the last quarter. Quad Cities Investment Group LLC acquired a new stake in Red Hat in the 2nd quarter valued at about $134,000. Financial Architects Inc lifted its stake in Red Hat by 95.2% in the 2nd quarter. Financial Architects Inc now owns 1,025 shares of the open-source software company’s stock valued at $137,000 after purchasing an additional 500 shares during the last quarter. Finally, Truvestments Capital LLC acquired a new stake in Red Hat during the third quarter worth approximately $138,000. Institutional investors and hedge funds own 96.06% of the company’s stock.

Red Hat Company Profile

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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To view ValuEngine’s full report, visit ValuEngine’s official website.

Analyst Recommendations for Red Hat (NYSE:RHT)

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