Red Hat Inc (NYSE:RHT) – Research analysts at KeyCorp increased their Q4 2019 earnings estimates for shares of Red Hat in a note issued to investors on Wednesday, September 19th. KeyCorp analyst A. Kurtz now expects that the open-source software company will earn $0.79 per share for the quarter, up from their prior estimate of $0.78. KeyCorp has a “Overweight” rating and a $180.00 price objective on the stock.

Other equities research analysts have also issued research reports about the stock. Nomura decreased their price objective on shares of Red Hat from $182.00 to $175.00 and set a “buy” rating for the company in a research note on Thursday. BMO Capital Markets decreased their price objective on shares of Red Hat from $177.00 to $158.00 and set an “outperform” rating for the company in a research note on Thursday. Raymond James lowered shares of Red Hat from an “outperform” rating to a “market perform” rating and set a $84.00 price objective for the company. in a research note on Tuesday, June 19th. Stifel Nicolaus decreased their price objective on shares of Red Hat from $172.00 to $160.00 and set a “buy” rating for the company in a research note on Thursday. Finally, Barclays decreased their price objective on shares of Red Hat from $186.00 to $160.00 and set an “overweight” rating for the company in a research note on Friday, June 22nd. One analyst has rated the stock with a sell rating, eleven have assigned a hold rating and twenty have given a buy rating to the company’s stock. The stock currently has an average rating of “Buy” and a consensus price target of $154.53.

NYSE:RHT opened at $134.62 on Monday. The company has a quick ratio of 1.28, a current ratio of 1.23 and a debt-to-equity ratio of 0.40. The stock has a market capitalization of $23.88 billion, a price-to-earnings ratio of 58.53, a PEG ratio of 3.15 and a beta of 1.07. 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 quarterly earnings data on Wednesday, September 19th. The open-source software company reported $0.85 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.82 by $0.03. The firm had revenue of $822.75 million during the quarter, compared to analyst estimates of $828.12 million. Red Hat had a net margin of 9.15% and a return on equity of 31.80%. The company’s revenue for the quarter was up 13.7% on a year-over-year basis. During the same quarter last year, the business posted $0.77 EPS.

Red Hat announced that its board has initiated a stock buyback program on Thursday, June 21st that permits the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization permits the open-source software company to repurchase up to 4% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company’s board of directors believes its stock is undervalued.

In related news, insider Michael A. Kelly sold 636 shares of the firm’s stock in a transaction that occurred on Tuesday, July 17th. The shares were sold at an average price of $145.00, for a total value of $92,220.00. Following the completion of the transaction, the insider now directly owns 5,965 shares of the company’s stock, valued at approximately $864,925. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO James M. Whitehurst sold 44,472 shares of the firm’s stock in a transaction that occurred on 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 completion of the transaction, the chief executive officer now directly owns 445,557 shares of the company’s stock, valued at $63,518,605.92. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 56,926 shares of company stock valued at $8,145,758. 0.58% of the stock is owned by insiders.

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Royal London Asset Management Ltd. bought a new position in Red Hat in the 2nd quarter worth approximately $9,990,000. Advisors Asset Management Inc. lifted its stake in Red Hat by 6.3% in the 2nd quarter. Advisors Asset Management Inc. now owns 54,721 shares of the open-source software company’s stock worth $7,353,000 after purchasing an additional 3,264 shares in the last quarter. McAdam LLC lifted its stake in Red Hat by 2,168.1% in the 2nd quarter. McAdam LLC now owns 1,565 shares of the open-source software company’s stock worth $210,000 after purchasing an additional 1,496 shares in the last quarter. Bristol John W & Co. Inc. NY purchased a new stake in Red Hat in the 2nd quarter worth approximately $27,953,000. Finally, Cowen Inc. purchased a new stake in Red Hat in the 2nd quarter worth approximately $6,205,000. 95.21% of the stock is owned by institutional investors.

About Red Hat

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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Earnings History and Estimates for Red Hat (NYSE:RHT)

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