Red Hat Inc (NYSE:RHT) has earned an average rating of “Buy” from the thirty-two brokerages that are currently covering the company, Marketbeat Ratings reports. One investment analyst has rated the stock with a sell rating, eleven have given a hold rating and twenty have issued a buy rating on the company. The average 12-month price target among brokers that have covered the stock in the last year is $157.79.

Several equities analysts have issued reports on the company. Monness Crespi & Hardt dropped their price objective on Red Hat from $200.00 to $186.00 and set a “buy” rating on the stock in a report on Friday, June 22nd. Cowen reaffirmed a “buy” rating and set a $165.00 price objective on shares of Red Hat in a report on Tuesday, June 26th. ValuEngine lowered Red Hat from a “strong-buy” rating to a “buy” rating in a report on Friday, June 22nd. BMO Capital Markets raised their price objective on Red Hat from $180.00 to $192.00 and gave the stock a “market perform” rating in a report on Tuesday, June 19th. Finally, Royal Bank of Canada dropped their price objective on Red Hat from $180.00 to $177.00 and set an “outperform” rating on the stock in a report on Friday, June 22nd.

NYSE:RHT traded up $1.53 during trading hours on Friday, hitting $143.50. The company’s stock had a trading volume of 82,443 shares, compared to its average volume of 1,440,305. The firm has a market capitalization of $25.12 billion, a PE ratio of 62.07, a price-to-earnings-growth ratio of 3.45 and a beta of 1.07. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.28 and a quick ratio of 1.28. Red Hat has a 52-week low of $104.51 and a 52-week high of $177.70.

Red Hat (NYSE:RHT) last posted its earnings results on Thursday, June 21st. The open-source software company reported $0.72 EPS for the quarter, beating the consensus estimate of $0.69 by $0.03. The firm had revenue of $813.53 million for the quarter, compared to analyst estimates of $807.48 million. Red Hat had a return on equity of 30.40% and a net margin of 9.77%. Red Hat’s revenue for the quarter was up 20.2% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.56 earnings per share. equities analysts anticipate that Red Hat will post 2.56 EPS for the current year.

Red Hat declared that its board has initiated a share buyback program on Thursday, June 21st that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the open-source software company to buy up to 4% of its shares through open market purchases. Shares buyback programs are typically an indication that the company’s leadership believes its stock is undervalued.

In related news, CEO James M. Whitehurst sold 44,472 shares of the firm’s stock in a transaction dated Tuesday, August 7th. The stock was sold at an average price of $142.56, for a total transaction of $6,339,928.32. Following the transaction, the chief executive officer now owns 445,557 shares of the company’s stock, valued at $63,518,605.92. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, insider Michael A. Kelly sold 636 shares of the firm’s stock in a transaction dated 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 directly owns 5,965 shares in the company, valued at approximately $864,925. The disclosure for this sale can be found here. In the last three months, insiders have sold 56,926 shares of company stock worth $8,145,758. Corporate insiders own 0.58% of the company’s stock.

A number of large investors have recently made changes to their positions in the stock. Janus Henderson Group PLC lifted its position in Red Hat by 64.9% in the second quarter. Janus Henderson Group PLC now owns 2,162,044 shares of the open-source software company’s stock valued at $290,527,000 after purchasing an additional 850,715 shares during the period. Old Mutual Global Investors UK Ltd. lifted its position in Red Hat by 88.0% in the first quarter. Old Mutual Global Investors UK Ltd. now owns 1,515,991 shares of the open-source software company’s stock valued at $226,655,000 after purchasing an additional 709,410 shares during the period. Blair William & Co. IL lifted its position in Red Hat by 1.7% in the first quarter. Blair William & Co. IL now owns 1,419,442 shares of the open-source software company’s stock valued at $212,221,000 after purchasing an additional 23,279 shares during the period. OppenheimerFunds Inc. lifted its position in Red Hat by 393.0% in the first quarter. OppenheimerFunds Inc. now owns 1,230,188 shares of the open-source software company’s stock valued at $183,925,000 after purchasing an additional 980,635 shares during the period. Finally, Federated Investors Inc. PA lifted its position in Red Hat by 9.9% in the first quarter. Federated Investors Inc. PA now owns 975,208 shares of the open-source software company’s stock valued at $145,802,000 after purchasing an additional 87,494 shares during the period. Hedge funds and other institutional investors own 95.11% 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.

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Analyst Recommendations for Red Hat (NYSE:RHT)

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