OTR Global Downgrades Red Hat (RHT) to Positive

Red Hat (NYSE:RHT) was downgraded by stock analysts at OTR Global to a “positive” rating in a report issued on Thursday, The Fly reports.

A number of other analysts also recently commented on RHT. Zacks Investment Research raised shares of Red Hat from a “hold” rating to a “strong-buy” rating and set a $190.00 price objective on the stock in a report on Monday, May 28th. Barclays reaffirmed an “overweight” rating and issued a $186.00 price target on shares of Red Hat in a report on Thursday, June 14th. BMO Capital Markets upped their price target on shares of Red Hat from $180.00 to $192.00 and gave the company a “market perform” rating in a report on Tuesday, June 19th. Raymond James downgraded shares of 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, BTIG Research downgraded shares of Red Hat from a “buy” rating to a “neutral” rating and set a $85.00 price target on the stock. in a report on Friday, June 22nd. One investment analyst has rated the stock with a sell rating, eleven have given a hold rating and twenty have assigned a buy rating to the stock. Red Hat has a consensus rating of “Buy” and an average target price of $158.03.

RHT stock opened at $148.86 on Thursday. The stock has a market cap of $26.94 billion, a P/E ratio of 64.60, a P/E/G ratio of 3.56 and a beta of 1.07. Red Hat has a 52 week low of $104.51 and a 52 week high of $177.70. The company has a current ratio of 1.28, a quick ratio of 1.28 and a debt-to-equity ratio of 0.39.

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

Red Hat declared that its Board of Directors has initiated a stock repurchase plan on Thursday, June 21st that permits the company to buyback $1.00 billion in outstanding shares. This buyback authorization permits the open-source software company to reacquire up to 4% of its shares through open market purchases. Shares buyback plans are typically a sign that the company’s board believes its stock is undervalued.

In related news, EVP Delisa Alexander sold 2,305 shares of the company’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 transaction of $334,225.00. Following the transaction, the executive vice president now owns 36,309 shares of the company’s stock, valued at $5,264,805. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, CEO James M. Whitehurst sold 9,513 shares of the company’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 transaction of $1,379,385.00. Following the transaction, the chief executive officer now directly owns 374,286 shares in the company, valued at approximately $54,271,470. The disclosure for this sale can be found here. Insiders have sold 56,926 shares of company stock worth $8,145,758 in the last three months. Insiders own 0.58% of the company’s stock.

A number of hedge funds have recently modified their holdings of the stock. Advisors Asset Management Inc. increased its position in Red Hat by 6.3% during the second 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 during the last quarter. McAdam LLC increased its position in Red Hat by 2,168.1% during the second 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 during the last quarter. Bristol John W & Co. Inc. NY acquired a new position in Red Hat during the second quarter worth approximately $27,953,000. Cowen Inc. acquired a new position in Red Hat during the second quarter worth approximately $6,205,000. Finally, Bank of Nova Scotia increased its position in Red Hat by 58.1% during the second quarter. Bank of Nova Scotia now owns 55,172 shares of the open-source software company’s stock worth $7,413,000 after purchasing an additional 20,285 shares during the last quarter. 95.23% of the stock is owned by hedge funds and other institutional investors.

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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