Zacks: Analysts Anticipate Red Hat Inc (RHT) Will Post Earnings of $0.81 Per Share

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Equities research analysts expect Red Hat Inc (NYSE:RHT) to report earnings of $0.81 per share for the current quarter, Zacks Investment Research reports. Twelve analysts have made estimates for Red Hat’s earnings, with estimates ranging from $0.81 to $0.82. Red Hat posted earnings of $0.77 per share during the same quarter last year, which would indicate a positive year-over-year growth rate of 5.2%. The firm is expected to issue its next quarterly earnings report on Monday, September 24th.

On average, analysts expect that Red Hat will report full year earnings of $3.46 per share for the current fiscal year, with EPS estimates ranging from $3.43 to $3.47. For the next financial year, analysts anticipate that the company will post earnings of $3.94 per share, with EPS estimates ranging from $3.75 to $4.15. Zacks’ EPS averages are a mean average based on a survey of sell-side research analysts that follow Red Hat.

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, beating 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 firm had revenue of $813.53 million for the quarter, compared to analysts’ expectations of $807.48 million. During the same period in the prior year, the business posted $0.56 earnings per share. The business’s revenue was up 20.2% compared to the same quarter last year.

A number of analysts have weighed in on the company. Zacks Investment Research cut Red Hat from a “buy” rating to a “hold” rating in a research report on Wednesday, June 27th. 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 research report on Wednesday, June 27th. Cowen reiterated a “buy” rating and issued a $165.00 price target on shares of Red Hat in a research report on Tuesday, June 26th. ValuEngine cut Red Hat from a “strong-buy” rating to a “buy” rating in a report on Friday, June 22nd. Finally, Barclays decreased their target price on Red Hat from $186.00 to $160.00 and set an “overweight” rating on the stock in a report on Friday, June 22nd. One investment analyst has rated the stock with a sell rating, eleven have issued a hold rating and twenty have assigned a buy rating to the company’s stock. Red Hat has an average rating of “Buy” and an average price target of $157.83.

In other news, insider Michael A. Kelly sold 636 shares of the company’s stock in a transaction on Tuesday, July 17th. The stock was sold at an average price of $145.00, for a total transaction of $92,220.00. Following the transaction, the insider now owns 5,965 shares of the company’s stock, valued at $864,925. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Delisa Alexander sold 2,305 shares of the company’s stock in a transaction on Tuesday, July 17th. The shares were sold at an average price of $145.00, for a total value of $334,225.00. Following the transaction, the executive vice president now directly owns 36,309 shares in the company, valued at approximately $5,264,805. 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 ninety days. 0.58% of the stock is currently owned by insiders.

Institutional investors and hedge funds have recently modified their holdings of the company. OppenheimerFunds Inc. lifted its stake in shares of Red Hat by 393.0% during the first quarter. OppenheimerFunds Inc. now owns 1,230,188 shares of the open-source software company’s stock valued at $183,925,000 after acquiring an additional 980,635 shares during the period. Sigma Planning Corp lifted its stake in shares of Red Hat by 424.0% during the second quarter. Sigma Planning Corp now owns 12,376 shares of the open-source software company’s stock valued at $1,663,000 after acquiring an additional 10,014 shares during the period. Nisa Investment Advisors LLC lifted its stake in Red Hat by 10.2% in the second quarter. Nisa Investment Advisors LLC now owns 42,520 shares of the open-source software company’s stock valued at $5,713,000 after buying an additional 3,924 shares during the period. Los Angeles Capital Management & Equity Research Inc. lifted its stake in Red Hat by 541.1% in the second quarter. Los Angeles Capital Management & Equity Research Inc. now owns 202,963 shares of the open-source software company’s stock valued at $27,272,000 after buying an additional 171,305 shares during the period. Finally, Swedbank lifted its stake in Red Hat by 2.9% in the second quarter. Swedbank now owns 819,370 shares of the open-source software company’s stock valued at $110,099,000 after buying an additional 23,094 shares during the period. 95.63% of the stock is currently owned by institutional investors and hedge funds.

NYSE:RHT traded down $0.11 during trading hours on Monday, reaching $140.04. The company had a trading volume of 1,050,200 shares, compared to its average volume of 1,934,186. Red Hat has a one year low of $100.44 and a one year high of $177.70. The stock has a market capitalization of $25.68 billion, a price-to-earnings ratio of 60.86, a price-to-earnings-growth ratio of 3.53 and a beta of 1.07. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.28 and a quick ratio of 1.28.

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 usually a sign that the company’s leadership believes its stock is undervalued.

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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