Red Hat (RHT) Downgraded by ValuEngine to Hold

ValuEngine cut shares of Red Hat (NYSE:RHT) from a buy rating to a hold rating in a research report released on Tuesday morning.

Several other analysts have also recently commented on RHT. Monness Crespi & Hardt decreased their price target on shares of Red Hat from $200.00 to $186.00 and set a buy rating on the stock in a research note on Friday, June 22nd. Cowen reissued a buy rating and set a $165.00 price target on shares of Red Hat in a research note on Tuesday, June 26th. Royal Bank of Canada decreased their price target on shares of Red Hat from $180.00 to $177.00 and set an outperform rating on the stock in a research note on Friday, June 22nd. BMO Capital Markets increased their price target on shares of Red Hat from $180.00 to $192.00 and gave the company a market perform rating in a research note on Tuesday, June 19th. Finally, Zacks Investment Research raised shares of Red Hat from a hold rating to a buy rating and set a $159.00 price target on the stock in a research note on Tuesday, June 26th. One equities research analyst has rated the stock with a sell rating, eleven have issued a hold rating and eighteen have issued a buy rating to the stock. The stock presently has an average rating of Buy and an average target price of $156.07.

Shares of Red Hat stock opened at $122.51 on Tuesday. The company has a current ratio of 1.23, a quick ratio of 1.28 and a debt-to-equity ratio of 0.40. The stock has a market cap of $24.17 billion, a price-to-earnings ratio of 52.37, a PEG ratio of 3.54 and a beta of 1.14. Red Hat has a 1-year low of $116.31 and a 1-year high of $177.70.

Red Hat (NYSE:RHT) last issued its quarterly earnings data on Wednesday, September 19th. The open-source software company reported $0.85 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.82 by $0.03. The firm had revenue of $822.75 million for the quarter, compared to analysts’ expectations of $828.12 million. Red Hat had a net margin of 9.15% and a return on equity of 31.80%. The company’s quarterly revenue was up 13.7% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.77 earnings per share. As a group, equities analysts anticipate that Red Hat will post 2.57 EPS for the current year.

Red Hat declared that its Board of Directors has initiated a share repurchase plan on Thursday, June 21st that allows the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization allows the open-source software company to purchase up to 4% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company’s board believes its shares are undervalued.

In other Red Hat news, CEO James M. Whitehurst sold 9,513 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 $1,379,385.00. Following the transaction, the chief executive officer now directly owns 374,286 shares of the company’s stock, valued at $54,271,470. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CEO James M. Whitehurst sold 44,472 shares of the firm’s stock in a transaction that occurred on Tuesday, August 7th. The shares were 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 in the company, 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 worth $8,145,758. Insiders own 0.58% of the company’s stock.

A number of hedge funds have recently made changes to their positions in RHT. Trust Co. of Oklahoma acquired a new stake in Red Hat in the third quarter worth $286,000. Gofen & Glossberg LLC IL raised its holdings in Red Hat by 13.1% in the third quarter. Gofen & Glossberg LLC IL now owns 45,763 shares of the open-source software company’s stock worth $6,237,000 after purchasing an additional 5,285 shares during the period. Daiwa SB Investments Ltd. raised its holdings in Red Hat by 54.5% in the third quarter. Daiwa SB Investments Ltd. now owns 4,930 shares of the open-source software company’s stock worth $672,000 after purchasing an additional 1,740 shares during the period. Boltwood Capital Management raised its holdings in Red Hat by 4.7% in the third quarter. Boltwood Capital Management now owns 9,755 shares of the open-source software company’s stock worth $1,329,000 after purchasing an additional 437 shares during the period. Finally, Spence Asset Management raised its holdings in Red Hat by 3.7% in the third quarter. Spence Asset Management now owns 32,817 shares of the open-source software company’s stock worth $4,472,000 after purchasing an additional 1,169 shares during the period. 95.25% of the stock is currently owned by hedge funds and other 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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