Stifel Nicolaus Downgrades Red Hat (RHT) to Hold

Red Hat (NYSE:RHT) was downgraded by equities research analysts at Stifel Nicolaus from a “buy” rating to a “hold” rating in a research note issued to investors on Monday, The Fly reports. They currently have a $190.00 target price on the open-source software company’s stock. Stifel Nicolaus’ price target indicates a potential upside of 11.76% from the stock’s previous close.

Other equities research analysts have also issued research reports about the stock. Nomura reduced their price target on shares of Red Hat from $182.00 to $175.00 and set a “buy” rating for the company in a report on Thursday, September 20th. BMO Capital Markets reduced their price target on shares of Red Hat from $177.00 to $158.00 and set an “outperform” rating for the company in a report on Thursday, September 20th. Needham & Company LLC began coverage on shares of Red Hat in a report on Monday, October 22nd. They issued a “buy” rating and a $183.00 price target for the company. Citigroup reduced their price target on shares of Red Hat from $167.00 to $163.00 and set a “buy” rating for the company in a report on Thursday, September 20th. Finally, Jefferies Financial Group reduced their price target on shares of Red Hat from $154.00 to $140.00 and set a “hold” rating for the company in a report on Friday, September 21st. One investment analyst has rated the stock with a sell rating, fifteen have issued a hold rating, fourteen have assigned a buy rating and one has given a strong buy rating to the company’s stock. The company presently has a consensus rating of “Hold” and a consensus price target of $163.48.

Shares of RHT opened at $170.00 on Monday. Red Hat has a 1-year low of $115.31 and a 1-year high of $177.70. The stock has a market cap of $20.53 billion, a P/E ratio of 73.91, a P/E/G ratio of 3.03 and a beta of 1.14. The company has a debt-to-equity ratio of 0.40, a current ratio of 1.23 and a quick ratio of 1.23.

Red Hat (NYSE:RHT) last posted its quarterly earnings results on Wednesday, September 19th. The open-source software company reported $0.85 EPS for the quarter, beating the consensus estimate of $0.82 by $0.03. Red Hat had a net margin of 9.15% and a return on equity of 31.80%. The business had revenue of $822.75 million during the quarter, compared to analyst estimates of $828.12 million. During the same quarter in the previous year, the business posted $0.77 EPS. The company’s quarterly revenue was up 13.7% compared to the same quarter last year. Research analysts forecast that Red Hat will post 2.57 EPS for the current fiscal year.

In other Red Hat news, CEO James M. Whitehurst sold 2,513 shares of the business’s stock in a transaction that occurred on Wednesday, October 17th. The shares were sold at an average price of $125.03, for a total transaction of $314,200.39. Following the sale, the chief executive officer now owns 361,627 shares of the company’s stock, valued at approximately $45,214,223.81. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, EVP Delisa Alexander sold 960 shares of the business’s stock in a transaction that occurred on Wednesday, October 17th. The stock was sold at an average price of $125.03, for a total transaction of $120,028.80. Following the sale, the executive vice president now directly owns 33,217 shares in the company, valued at approximately $4,153,121.51. The disclosure for this sale can be found here. In the last three months, insiders have sold 48,103 shares of company stock worth $6,793,912. 0.58% of the stock is owned by insiders.

Large investors have recently added to or reduced their stakes in the business. Signature Financial Management Inc. grew its position in Red Hat by 132.3% during the 2nd quarter. Signature Financial Management Inc. now owns 5,048 shares of the open-source software company’s stock worth $678,000 after purchasing an additional 2,875 shares during the last quarter. Twin Capital Management Inc. purchased a new stake in Red Hat during the 2nd quarter worth approximately $1,956,000. Davis R M Inc. grew its position in Red Hat by 2.4% during the 3rd quarter. Davis R M Inc. now owns 343,479 shares of the open-source software company’s stock worth $46,809,000 after purchasing an additional 8,155 shares during the last quarter. Prospera Financial Services Inc purchased a new stake in Red Hat during the 3rd quarter worth approximately $367,000. Finally, Sigma Planning Corp grew its position in Red Hat by 424.0% during the 2nd quarter. Sigma Planning Corp now owns 12,376 shares of the open-source software company’s stock worth $1,663,000 after purchasing an additional 10,014 shares during the last quarter. 96.06% of the stock is currently owned by 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.

Recommended Story: Bond

The Fly

Analyst Recommendations for Red Hat (NYSE:RHT)

Receive News & Ratings for Red Hat Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Red Hat and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply