Red Hat Inc. (NYSE:RHT)‘s stock had its “neutral” rating reiterated by analysts at Jefferies Group in a report issued on Thursday.

The analysts wrote, “RHT reported strong F2Q results on the back of large deals, as billings proxy of +20% exceeded the Street’s +16%. More importantly, New Subscription ACV (new business) grew 26% yoy, continuing solid momentum of the prior four periods. The only shortfall was cash flow, which is only partially explained by large deals typically signed at the end of the quarter.””

Other analysts have also issued reports about the stock. Mizuho restated a “buy” rating on shares of Red Hat in a report on Wednesday. BMO Capital Markets raised their price objective on shares of Red Hat from $85.00 to $89.00 and gave the stock an “outperform” rating in a report on Thursday. Drexel Hamilton restated a “buy” rating and issued a $105.00 price objective on shares of Red Hat in a report on Monday, June 20th. Morgan Stanley lowered shares of Red Hat from an “overweight” rating to an “equal weight” rating and raised their price objective for the stock from $72.18 to $80.00 in a report on Thursday, July 7th. They noted that the move was a valuation call. Finally, BTIG Research restated a “buy” rating and issued a $92.00 price objective on shares of Red Hat in a report on Thursday, June 23rd. Two equities research analysts have rated the stock with a sell rating, five have issued a hold rating, twenty-three have assigned a buy rating and one has given a strong buy rating to the company’s stock. Red Hat currently has a consensus rating of “Buy” and an average target price of $87.83.

Analyst Recommendations for Red Hat (NYSE:RHT)

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Red Hat (NYSE:RHT) opened at 77.04 on Thursday. Red Hat has a 52 week low of $59.59 and a 52 week high of $84.44. The company has a market cap of $13.95 billion, a price-to-earnings ratio of 67.58 and a beta of 1.32. The stock has a 50 day moving average price of $74.08 and a 200 day moving average price of $74.11.

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

In other news, EVP Delisa Alexander sold 2,395 shares of the business’s 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 owns 60,780 shares of the company’s stock, valued at approximately $4,426,607.40. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, EVP Michael Cunningham sold 10,000 shares of the business’s stock in a transaction on Tuesday, July 26th. The shares were sold at an average price of $75.00, for a total transaction of $750,000.00. Following the sale, the executive vice president now directly owns 52,484 shares of the company’s stock, valued at approximately $3,936,300. The disclosure for this sale can be found here. Insiders own 0.76% of the company’s stock.

Several large investors have recently modified their holdings of the stock. Vanguard Group Inc. increased its stake in shares of Red Hat by 1.4% in the second quarter. Vanguard Group Inc. now owns 16,090,395 shares of the open-source software company’s stock worth $1,168,163,000 after buying an additional 217,476 shares during the last quarter. FMR LLC increased its stake in shares of Red Hat by 5.1% in the second quarter. FMR LLC now owns 11,463,375 shares of the open-source software company’s stock worth $832,240,000 after buying an additional 558,296 shares during the last quarter. BlackRock Institutional Trust Company N.A. increased its stake in shares of Red Hat by 2.4% in the first quarter. BlackRock Institutional Trust Company N.A. now owns 4,695,624 shares of the open-source software company’s stock worth $349,871,000 after buying an additional 109,046 shares during the last quarter. William Blair Investment Management LLC increased its stake in shares of Red Hat by 9.6% in the second quarter. William Blair Investment Management LLC now owns 2,925,029 shares of the open-source software company’s stock worth $212,357,000 after buying an additional 255,220 shares during the last quarter. Finally, Geode Capital Management LLC increased its stake in shares of Red Hat by 3.6% in the first quarter. Geode Capital Management LLC now owns 1,474,178 shares of the open-source software company’s stock worth $109,614,000 after buying an additional 50,686 shares during the last quarter. 94.81% of the stock is owned by hedge funds and other institutional investors.

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.

5 Day Chart for NYSE:RHT

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