Red Hat Inc. (NYSE:RHT) issued an update on its third quarter earnings guidance on Wednesday morning. The company provided EPS guidance of $0.58 for the period, compared to the Thomson Reuters consensus EPS estimate of $0.57. The company issued revenue guidance of $613-623 million, compared to the consensus revenue estimate of $611.48 million.Red Hat also updated its FY17 guidance to $2.23-2.25 EPS.

Red Hat Inc. (NYSE:RHT) traded up 1.66% during mid-day trading on Wednesday, reaching $77.04. The company had a trading volume of 2,929,813 shares. The firm’s 50 day moving average price is $73.96 and its 200-day moving average price is $74.09. Red Hat Inc. has a 12 month low of $59.59 and a 12 month high of $84.44. The company has a market capitalization of $13.95 billion, a price-to-earnings ratio of 67.58 and a beta of 1.32.

Red Hat (NYSE:RHT) last released its earnings results on Wednesday, September 21st. The open-source software company reported $0.55 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.54 by $0.01. Red Hat had a return on equity of 18.27% and a net margin of 9.93%. The firm earned $599.80 million during the quarter, compared to analysts’ expectations of $593.34 million. During the same period in the previous year, the firm posted $0.47 EPS. Red Hat’s revenue for the quarter was up 19.0% on a year-over-year basis. Equities research analysts anticipate that Red Hat Inc. will post $2.21 earnings per share for the current year.

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RHT has been the subject of several analyst reports. Vetr raised Red Hat from a buy rating to a strong-buy rating and set a $81.54 price objective for the company in a research report on Thursday, September 8th. Jefferies Group reaffirmed a hold rating and set a $75.00 price objective on shares of Red Hat in a research report on Saturday, June 25th. Deutsche Bank AG reaffirmed a buy rating on shares of Red Hat in a research report on Friday, June 17th. Barclays PLC reaffirmed a buy rating and set a $90.00 price objective on shares of Red Hat in a research report on Thursday, September 15th. Finally, Morgan Stanley cut Red Hat from an overweight rating to an equal weight rating and upped their price objective for the stock from $72.18 to $80.00 in a research report 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 assigned a hold rating, twenty-three have given a buy rating and one has issued a strong buy rating to the company. The company presently has a consensus rating of Buy and a consensus target price of $87.69.

In related news, EVP Michael Cunningham sold 10,000 shares of the stock in a transaction on Tuesday, July 26th. The stock was sold at an average price of $75.00, for a total value of $750,000.00. Following the transaction, the executive vice president now directly owns 52,484 shares of the company’s stock, valued at approximately $3,936,300. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, EVP Delisa Alexander sold 2,395 shares of the stock in a transaction on Tuesday, July 19th. The stock was sold at an average price of $72.83, for a total value of $174,427.85. Following the completion of the transaction, the executive vice president now directly owns 60,780 shares in the company, valued at $4,426,607.40. The disclosure for this sale can be found here. 0.76% of the stock is owned by corporate insiders.

Hedge funds and other institutional investors have recently modified their holdings of the company. Globeflex Capital L P raised its position in shares of 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 period. ProShare Advisors LLC raised its position in Red Hat by 0.8% in the second quarter. ProShare Advisors LLC now owns 21,946 shares of the open-source software company’s stock valued at $1,593,000 after buying an additional 175 shares during the period. Caisse DE Depot ET Placement DU Quebec raised its position in Red Hat by 1.0% in the second quarter. Caisse DE Depot ET Placement DU Quebec now owns 19,504 shares of the open-source software company’s stock valued at $1,416,000 after buying an additional 200 shares during the period. 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 valued at $265,000 after buying an additional 230 shares during the period. Finally, Pacer Advisors Inc. raised its position in Red Hat by 10.8% in the second quarter. Pacer Advisors Inc. now owns 3,392 shares of the open-source software company’s stock valued at $246,000 after buying an additional 331 shares during the period. 94.81% of the stock is currently 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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