Brokerages forecast that Red Hat Inc (NYSE:RHT) will report $0.81 earnings per share for the current fiscal quarter, according to Zacks. Twelve analysts have provided estimates for Red Hat’s earnings, with estimates ranging from $0.81 to $0.82. Red Hat posted earnings per share of $0.77 in the same quarter last year, which would suggest a positive year over year growth rate of 5.2%. The business is expected to report its next earnings report on Monday, September 24th.
According to Zacks, analysts expect that Red Hat will report full-year earnings of $3.46 per share for the current year, with EPS estimates ranging from $3.43 to $3.47. For the next year, analysts expect that the company will report earnings of $3.94 per share, with EPS estimates ranging from $3.75 to $4.15. Zacks’ earnings per share averages are an average based on a survey of research firms that that provide coverage for Red Hat.
Red Hat (NYSE:RHT) last issued its quarterly earnings data on Thursday, June 21st. The open-source software company reported $0.72 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.69 by $0.03. Red Hat had a return on equity of 30.40% and a net margin of 9.77%. The business had revenue of $813.53 million during the quarter, compared to analysts’ expectations of $807.48 million. During the same period in the previous year, the firm posted $0.56 earnings per share. The company’s revenue was up 20.2% on a year-over-year basis.
A number of brokerages have recently weighed in on RHT. Zacks Investment Research raised Red Hat from a “hold” rating to a “buy” rating and set a $159.00 price objective for the company in a research note on Tuesday, June 26th. Monness Crespi & Hardt dropped their price objective on Red Hat from $200.00 to $186.00 and set a “buy” rating for the company in a research note on Friday, June 22nd. ValuEngine cut Red Hat from a “strong-buy” rating to a “buy” rating in a research note on Friday, June 22nd. BMO Capital Markets lifted their price objective on 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, Wells Fargo & Co reaffirmed an “outperform” rating and issued a $170.00 price objective on shares of Red Hat in a research note on Friday, June 22nd. One investment analyst has rated the stock with a sell rating, eleven have given a hold rating and twenty have given a buy rating to the company. The stock currently has an average rating of “Buy” and a consensus price target of $157.83.
In other news, CEO James M. Whitehurst sold 44,472 shares of the company’s stock in a transaction dated 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 approximately $63,518,605.92. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, insider Michael A. Kelly sold 636 shares of the company’s stock in a transaction dated Tuesday, July 17th. The stock was sold at an average price of $145.00, for a total value of $92,220.00. Following the transaction, the insider now directly owns 5,965 shares of the company’s stock, valued at $864,925. The disclosure for this sale can be found here. Insiders have sold a total of 56,926 shares of company stock valued at $8,145,758 over the last three months. 0.58% of the stock is currently owned by insiders.
Several large investors have recently added to or reduced their stakes in the company. Advisors Asset Management Inc. boosted its position in shares of Red Hat by 6.3% during 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 acquiring an additional 3,264 shares in the last quarter. McAdam LLC boosted its position in shares of Red Hat by 2,168.1% during the 2nd quarter. McAdam LLC now owns 1,565 shares of the open-source software company’s stock worth $210,000 after acquiring an additional 1,496 shares in the last quarter. Bristol John W & Co. Inc. NY acquired a new position in shares of Red Hat during the 2nd quarter worth about $27,953,000. Cowen Inc. acquired a new position in shares of Red Hat during the 2nd quarter worth about $6,205,000. Finally, Bank of Nova Scotia boosted its position in shares of Red Hat by 58.1% during the 2nd quarter. Bank of Nova Scotia now owns 55,172 shares of the open-source software company’s stock worth $7,413,000 after acquiring an additional 20,285 shares in the last quarter. 95.11% of the stock is owned by institutional investors and hedge funds.
Shares of NYSE RHT opened at $147.80 on Thursday. Red Hat has a twelve month low of $104.51 and a twelve month high of $177.70. The company has a quick ratio of 1.28, a current ratio of 1.28 and a debt-to-equity ratio of 0.39. The firm has a market capitalization of $25.12 billion, a PE ratio of 64.26, a PEG ratio of 3.45 and a beta of 1.07.
Red Hat declared that its board has approved a stock buyback program on Thursday, June 21st that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the open-source software company to repurchase up to 4% of its shares through open market purchases. Shares buyback programs are generally a sign that the company’s board of directors believes its stock is undervalued.
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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