Red Hat (NYSE:RHT) had its price target trimmed by Piper Jaffray Companies to $145.00 in a research report released on Friday, September 21st, The Fly reports. The brokerage currently has a neutral rating on the open-source software company’s stock. Piper Jaffray Companies also issued estimates for Red Hat’s Q3 2019 earnings at $0.64 EPS and Q4 2019 earnings at $0.78 EPS.
A number of other equities research analysts also recently weighed in on the company. OTR Global cut Red Hat to a positive rating in a research note on Thursday, September 13th. JPMorgan Chase & Co. cut Red Hat from an overweight rating to a neutral rating and decreased their price target for the company from $160.00 to $150.00 in a research note on Tuesday, September 18th. Jefferies Financial Group decreased their price target on Red Hat from $154.00 to $140.00 and set a hold rating for the company in a research note on Friday, September 21st. Royal Bank of Canada decreased their price target on Red Hat to $169.00 and set an outperform rating for the company in a research note on Monday, September 17th. Finally, Zacks Investment Research cut Red Hat from a strong-buy rating to a hold rating in a research note on Wednesday, May 30th. One equities research analyst has rated the stock with a sell rating, eleven have given a hold rating and eighteen have assigned a buy rating to the company’s stock. The stock currently has a consensus rating of Buy and an average target price of $156.07.
Shares of Red Hat stock opened at $122.51 on Friday. The firm has a market capitalization of $24.17 billion, a price-to-earnings ratio of 53.27, a price-to-earnings-growth ratio of 3.54 and a beta of 1.14. The company has a debt-to-equity ratio of 0.40, a quick ratio of 1.28 and a current ratio of 1.23. Red Hat has a 52 week low of $116.31 and a 52 week high of $177.70.
Red Hat (NYSE:RHT) last posted its quarterly earnings results on Wednesday, September 19th. The open-source software company reported $0.85 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.82 by $0.03. Red Hat had a return on equity of 31.80% and a net margin of 9.15%. The business had revenue of $822.75 million for the quarter, compared to the consensus estimate of $828.12 million. During the same quarter in the prior year, the company earned $0.77 EPS. The business’s revenue was up 13.7% compared to the same quarter last year. On average, equities analysts expect that Red Hat will post 2.57 EPS for the current fiscal year.
Red Hat announced that its Board of Directors has approved a stock repurchase plan 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 repurchase up to 4% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company’s management believes its shares are undervalued.
In related news, EVP Delisa Alexander sold 2,305 shares of Red Hat stock in a transaction that occurred on Tuesday, July 17th. The stock was sold at an average price of $145.00, for a total transaction of $334,225.00. Following the transaction, the executive vice president now owns 36,309 shares in the company, valued at $5,264,805. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, insider Michael A. Kelly sold 636 shares of Red Hat stock in a transaction that occurred on Tuesday, July 17th. The stock was sold at an average price of $145.00, for a total value of $92,220.00. Following the transaction, the insider now owns 5,965 shares in the company, valued at approximately $864,925. The disclosure for this sale can be found here. Insiders sold 56,926 shares of company stock worth $8,145,758 over the last ninety days. Corporate insiders own 0.58% of the company’s stock.
A number of large investors have recently bought and sold shares of RHT. Mount Yale Investment Advisors LLC purchased a new stake in shares of Red Hat in the 1st quarter valued at $103,000. Migdal Insurance & Financial Holdings Ltd. raised its holdings in shares of 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 buying an additional 981 shares during the period. Quad Cities Investment Group LLC purchased a new stake in shares of Red Hat in the 2nd quarter valued at $134,000. Financial Architects Inc raised its holdings in shares of 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 buying an additional 500 shares during the period. Finally, Pitcairn Co. purchased a new stake in shares of Red Hat in the 1st quarter valued at $203,000. Institutional investors own 95.25% 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.
Further Reading: Trading Strategy Examples and Plans
Receive News & Ratings for Red Hat Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Red Hat and related companies with MarketBeat.com's FREE daily email newsletter.