Red Hat’s (RHT) “Neutral” Rating Reiterated at Jefferies Group
Red Hat Inc. (NYSE:RHT)‘s stock had its “neutral” rating restated by research 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 research reports about the company. Oppenheimer Holdings Inc. reiterated a “buy” rating and set a $88.00 price objective on shares of Red Hat in a report on Monday, June 6th. Vetr lowered Red Hat from a “strong-buy” rating to a “buy” rating and set a $84.24 price objective for the company. in a report on Wednesday, June 1st. Drexel Hamilton reiterated a “buy” rating and set a $105.00 price objective on shares of Red Hat in a report on Monday, June 20th. Deutsche Bank AG reiterated a “buy” rating on shares of Red Hat in a report on Friday, June 17th. Finally, Royal Bank Of Canada restated a “buy” rating on shares of Red Hat in a research note on Thursday, June 16th. Two equities research analysts have rated the stock with a sell rating, five have given a hold rating, twenty-three have given a buy rating and one has given a strong buy rating to the stock. The stock currently has a consensus rating of “Buy” and an average price target of $87.83.
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Shares of Red Hat (NYSE:RHT) opened at 77.04 on Thursday. Red Hat has a 12-month low of $59.59 and a 12-month high of $84.44. The firm’s 50-day moving average price is $74.08 and its 200 day moving average price is $74.11. The company has a market cap of $13.95 billion, a price-to-earnings ratio of 67.58 and a beta of 1.32.
Red Hat (NYSE:RHT) last issued its quarterly earnings data on Wednesday, September 21st. The open-source software company reported $0.55 EPS for the quarter, beating the 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. During the same quarter in the prior year, the company posted $0.47 EPS. The business’s revenue for the quarter was up 19.0% on a year-over-year basis. On average, analysts predict that Red Hat will post $2.21 earnings per share for the current year.
In other news, EVP Michael Cunningham sold 10,000 shares of Red Hat stock in a transaction that occurred on Monday, July 11th. The shares were sold at an average price of $73.14, for a total transaction of $731,400.00. Following 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 filing with the SEC, which can be accessed through this link. Also, EVP Delisa Alexander sold 2,395 shares of Red Hat stock in a transaction that occurred 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 sale, the executive vice president now directly owns 60,780 shares in the company, valued at approximately $4,426,607.40. The disclosure for this sale can be found here. Insiders own 0.76% of the company’s stock.
Several hedge funds have recently added to or reduced their stakes in the stock. Vanguard Group Inc. raised its stake in 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 valued at $1,168,163,000 after buying an additional 217,476 shares during the last quarter. FMR LLC raised 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. raised 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 raised 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 raised 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 currently owned by hedge funds and other institutional investors.
Red Hat Company Profile
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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