Connor Clark & Lunn Investment Management Ltd. Takes $4.42 Million Position in Red Hat Inc (RHT)
Connor Clark & Lunn Investment Management Ltd. bought a new position in Red Hat Inc (NYSE:RHT) during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund bought 32,875 shares of the open-source software company’s stock, valued at approximately $4,417,000.
Several other hedge funds and other institutional investors also recently modified their holdings of the stock. Shepherd Financial Partners LLC acquired a new position in shares of Red Hat in the 2nd quarter worth $224,000. BNP PARIBAS ASSET MANAGEMENT Holding S.A. grew its holdings in shares of Red Hat by 129.0% in the 2nd quarter. BNP PARIBAS ASSET MANAGEMENT Holding S.A. now owns 353,118 shares of the open-source software company’s stock worth $47,449,000 after acquiring an additional 198,907 shares during the last quarter. Malaga Cove Capital LLC acquired a new position in shares of Red Hat in the 2nd quarter worth $599,000. Kovack Advisors Inc. acquired a new position in shares of Red Hat in the 2nd quarter worth $347,000. Finally, Nvwm LLC grew its holdings in shares of Red Hat by 542.0% in the 2nd quarter. Nvwm LLC now owns 2,953 shares of the open-source software company’s stock worth $397,000 after acquiring an additional 2,493 shares during the last quarter. Institutional investors and hedge funds own 95.93% of the company’s stock.
In related news, EVP Delisa Alexander sold 2,305 shares of the business’s stock in a transaction dated Tuesday, July 17th. The stock was sold at an average price of $145.00, for a total transaction of $334,225.00. Following the completion of the transaction, the executive vice president now owns 36,309 shares of the company’s stock, valued at approximately $5,264,805. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO James M. Whitehurst sold 44,472 shares of the business’s stock in a transaction dated Tuesday, August 7th. The stock was sold at an average price of $142.56, for a total value of $6,339,928.32. Following the transaction, the chief executive officer now directly owns 445,557 shares of the company’s stock, valued at approximately $63,518,605.92. The disclosure for this sale can be found here. Insiders sold 56,926 shares of company stock valued at $8,145,758 in the last ninety days. Insiders own 0.58% of the company’s stock.
Red Hat (NYSE:RHT) last announced its quarterly earnings results on Thursday, June 21st. The open-source software company reported $0.72 earnings per share for the quarter, topping analysts’ consensus estimates of $0.69 by $0.03. Red Hat had a return on equity of 30.40% and a net margin of 9.77%. The company had revenue of $813.53 million during the quarter, compared to analysts’ expectations of $807.48 million. During the same quarter in the previous year, the firm earned $0.56 earnings per share. The business’s quarterly revenue was up 20.2% compared to the same quarter last year. analysts predict that Red Hat Inc will post 2.56 EPS for the current fiscal year.
Red Hat declared that its board has authorized a stock repurchase program on Thursday, June 21st that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the open-source software company to reacquire up to 4% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s board believes its shares are undervalued.
A number of research analysts have recently weighed in on RHT shares. BMO Capital Markets lowered their price target on Red Hat from $192.00 to $177.00 and set a “market perform” rating on the stock in a report on Wednesday, June 27th. ValuEngine upgraded Red Hat from a “buy” rating to a “strong-buy” rating in a report on Wednesday, May 2nd. Zacks Investment Research downgraded Red Hat from a “buy” rating to a “hold” rating in a report on Wednesday, June 27th. Raymond James downgraded Red Hat from an “outperform” rating to a “market perform” rating and set a $84.00 price target on the stock. in a report on Tuesday, June 19th. Finally, Royal Bank of Canada lifted their price target on Red Hat to $180.00 and gave the company a “positive” rating in a report on Wednesday, May 9th. One investment analyst has rated the stock with a sell rating, eleven have given a hold rating and twenty have given a buy rating to the company’s stock. Red Hat has a consensus rating of “Buy” and an average target price of $157.83.
Red Hat 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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