Red Hat Inc. (RHT) Updates FY17 Earnings Guidance
Red Hat Inc. (NYSE:RHT) updated its FY17 earnings guidance on Wednesday. The company provided earnings per share guidance of $2.23-2.25 for the period, compared to the Thomson Reuters consensus earnings per share estimate of $2.21. The company issued revenue guidance of $2.415-2.535 billion, compared to the consensus revenue estimate of $2.40 billion.Red Hat also updated its Q3 guidance to $0.58 EPS.
A number of brokerages have recently issued reports on RHT. Mizuho reissued a buy rating on shares of Red Hat in a research note on Wednesday. Barclays PLC reissued a buy rating and set a $90.00 target price on shares of Red Hat in a research note on Thursday, September 15th. Vetr raised Red Hat from a buy rating to a strong-buy rating and set a $81.54 target price for the company in a research note on Wednesday, September 14th. Deutsche Bank AG reissued a buy rating and set a $95.00 target price on shares of Red Hat in a research note on Saturday, August 13th. Finally, Morgan Stanley downgraded Red Hat from an overweight rating to an equal weight rating and increased their target price for the stock from $72.18 to $80.00 in a research note on Thursday, July 7th. They noted that the move was a valuation call. Two equities research analysts have rated the stock with a sell rating, five have issued a hold rating, twenty-three have given a buy rating and one has issued a strong buy rating to the stock. Red Hat presently has an average rating of Buy and an average target price of $87.69.
Red Hat Inc. (NYSE:RHT) traded up 1.66% during trading on Wednesday, reaching $77.04. The company had a trading volume of 2,929,813 shares. Red Hat Inc. has a 12-month low of $59.59 and a 12-month high of $84.44. The stock has a market cap of $13.95 billion, a P/E ratio of 67.58 and a beta of 1.32. The firm has a 50-day moving average price of $73.96 and a 200 day moving average price of $74.09.
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Red Hat (NYSE:RHT) last released its quarterly earnings data on Wednesday, September 21st. The open-source software company reported $0.55 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.54 by $0.01. Red Hat had a net margin of 9.93% and a return on equity of 18.27%. The business earned $599.80 million during the quarter, compared to analyst estimates of $593.34 million. During the same quarter in the previous year, the business earned $0.47 EPS. Red Hat’s quarterly revenue was up 19.0% compared to the same quarter last year. Equities research analysts predict that Red Hat Inc. will post $2.21 EPS for the current fiscal year.
In related news, EVP Michael Cunningham sold 10,000 shares of Red Hat stock in a transaction on Monday, July 11th. The shares were sold at an average price of $73.14, for a total value of $731,400.00. Following the completion of the sale, the executive vice president now owns 64,800 shares of the company’s stock, valued at approximately $4,739,472. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, EVP Delisa Alexander sold 2,395 shares of Red Hat stock in a transaction on Tuesday, July 19th. The shares were sold at an average price of $72.83, for a total transaction of $174,427.85. Following the completion of the sale, the executive vice president now directly owns 60,780 shares of the company’s stock, valued at approximately $4,426,607.40. The disclosure for this sale can be found here. 0.76% of the stock is currently owned by corporate insiders.
Large investors have recently added to or reduced their stakes in the stock. BlackRock Inc. raised its stake in Red Hat by 9.2% in the second quarter. BlackRock Inc. now owns 353,244 shares of the open-source software company’s stock valued at $25,645,000 after buying an additional 29,645 shares during the last quarter. Globeflex Capital L P raised its stake in Red Hat by 1.8% in the second quarter. Globeflex Capital L P now owns 6,201 shares of the open-source software company’s stock valued at $450,000 after buying an additional 112 shares during the last quarter. Bank of Nova Scotia raised its position in Red Hat by 6.7% in the second quarter. Bank of Nova Scotia now owns 3,644 shares of the open-source software company’s stock worth $265,000 after buying an additional 230 shares in the last quarter. GAM Holding AG raised its position in Red Hat by 3.4% in the second quarter. GAM Holding AG now owns 36,139 shares of the open-source software company’s stock worth $2,624,000 after buying an additional 1,205 shares in the last quarter. Finally, Quadrature Capital Ltd purchased a new position in Red Hat during the second quarter worth $472,000. 94.81% of the stock is owned by institutional investors and hedge funds.
About Red Hat
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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