Red Hat (RHT) Getting Somewhat Favorable Media Coverage, Analysis Finds

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Press coverage about Red Hat (NYSE:RHT) has been trending somewhat positive recently, Accern Sentiment reports. The research group ranks the sentiment of news coverage by analyzing more than twenty million blog and news sources in real time. Accern ranks coverage of companies on a scale of -1 to 1, with scores nearest to one being the most favorable. Red Hat earned a coverage optimism score of 0.11 on Accern’s scale. Accern also gave headlines about the open-source software company an impact score of 46.5221627807844 out of 100, indicating that recent news coverage is somewhat unlikely to have an impact on the stock’s share price in the next few days.

Here are some of the headlines that may have impacted Accern Sentiment Analysis’s rankings:

Several analysts have weighed in on RHT shares. ValuEngine cut shares of Red Hat from a “strong-buy” rating to a “buy” rating in a research note on Friday, June 22nd. Monness Crespi & Hardt decreased their price objective 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. UBS Group reaffirmed a “buy” rating and set a $170.00 price objective on shares of Red Hat in a research note on Friday, June 22nd. Cowen reaffirmed a “buy” rating and set a $165.00 price objective on shares of Red Hat in a research note on Tuesday, June 26th. Finally, Zacks Investment Research raised shares of Red Hat from a “hold” rating to a “buy” rating and set a $159.00 price objective on the stock in a research note on Tuesday, June 26th. One research 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. The company has an average rating of “Buy” and an average price target of $157.83.

Shares of RHT stock opened at $147.80 on Thursday. Red Hat has a 1 year low of $104.51 and a 1 year high of $177.70. The company has a market cap of $25.12 billion, a PE ratio of 64.26, a P/E/G ratio of 3.45 and a beta of 1.07. 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 announced its earnings results on Thursday, June 21st. The open-source software company reported $0.72 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.69 by $0.03. Red Hat had a net margin of 9.77% and a return on equity of 30.40%. The company had revenue of $813.53 million for the quarter, compared to analyst estimates of $807.48 million. During the same period in the prior year, the business earned $0.56 earnings per share. Red Hat’s quarterly revenue was up 20.2% on a year-over-year basis. research analysts predict that Red Hat will post 2.56 EPS for the current year.

Red Hat declared that its Board of Directors has authorized a stock buyback 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 stock through open market purchases. Stock repurchase plans are typically a sign that the company’s board of directors believes its stock is undervalued.

In related news, CEO James M. Whitehurst sold 44,472 shares of the stock in a transaction that occurred on Tuesday, August 7th. The shares were sold at an average price of $142.56, for a total value of $6,339,928.32. Following the transaction, the chief executive officer now directly owns 445,557 shares in the company, valued at $63,518,605.92. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO James M. Whitehurst sold 9,513 shares of the 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 completion of the transaction, the chief executive officer now owns 374,286 shares in the company, valued at $54,271,470. The disclosure for this sale can be found here. Insiders sold 56,926 shares of company stock worth $8,145,758 over the last 90 days. 0.58% of the stock is currently owned by company insiders.

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.

Further Reading: Calculate Your Return on Investment (ROI)

Insider Buying and Selling by Quarter for Red Hat (NYSE:RHT)

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