Wall Street analysts predict that Red Hat Inc (NYSE:RHT) will report $827.58 million in sales for the current fiscal quarter, Zacks reports. Eleven analysts have provided estimates for Red Hat’s earnings, with the highest sales estimate coming in at $832.45 million and the lowest estimate coming in at $826.00 million. Red Hat posted sales of $723.36 million during the same quarter last year, which would indicate a positive year over year growth rate of 14.4%. The business is expected to announce its next quarterly earnings results after the market closes on Wednesday, September 19th.
On average, analysts expect that Red Hat will report full-year sales of $3.39 billion for the current fiscal year, with estimates ranging from $3.38 billion to $3.41 billion. For the next fiscal year, analysts expect that the firm will report sales of $3.89 billion per share, with estimates ranging from $3.79 billion to $3.97 billion. Zacks’ sales calculations are a mean average based on a survey of sell-side research firms that follow 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 (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.69 by $0.03. The business 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 company’s quarterly revenue was up 20.2% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.56 EPS.
A number of analysts have recently weighed in on RHT shares. BMO Capital Markets reduced their target price on shares of 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. Zacks Investment Research downgraded shares of Red Hat from a “buy” rating to a “hold” rating in a research report on Wednesday, June 27th. Raymond James downgraded shares of Red Hat from an “outperform” rating to a “market perform” rating and set a $84.00 target price on the stock. in a research report on Tuesday, June 19th. Royal Bank of Canada upped their target price on shares of Red Hat to $180.00 and gave the stock a “positive” rating in a research report on Wednesday, May 9th. Finally, Cowen reaffirmed a “buy” rating and issued a $165.00 target price on shares of Red Hat in a research report on Tuesday, June 26th. One research 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. The stock presently has a consensus rating of “Buy” and a consensus target price of $157.83.
Shares of NYSE:RHT traded up $1.65 during midday trading on Friday, reaching $145.93. The company’s stock had a trading volume of 1,081,700 shares, compared to its average volume of 1,897,419. The company has a market capitalization of $26.20 billion, a PE ratio of 62.68, a P/E/G ratio of 3.60 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 has a 12-month low of $104.51 and a 12-month high of $177.70.
Red Hat declared that its Board of Directors has initiated a share buyback program on Thursday, June 21st that permits the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization permits the open-source software company to buy up to 4% of its stock through open market purchases. Stock repurchase programs are often an indication that the company’s board of directors believes its stock is undervalued.
In related news, insider Michael A. Kelly sold 636 shares of the company’s stock in a transaction dated Tuesday, July 17th. The shares were sold at an average price of $145.00, for a total value of $92,220.00. Following the transaction, the insider now owns 5,965 shares in the company, valued at approximately $864,925. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, 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 owns 445,557 shares in the company, valued at approximately $63,518,605.92. The disclosure for this sale can be found here. In the last quarter, insiders sold 56,926 shares of company stock worth $8,145,758. 0.58% of the stock is currently owned by company insiders.
A number of institutional investors have recently made changes to their positions in the stock. Mount Yale Investment Advisors LLC bought a new position in Red Hat during the 1st quarter valued at about $103,000. Migdal Insurance & Financial Holdings Ltd. lifted its stake in Red Hat by 16,350.0% during the 2nd quarter. Migdal Insurance & Financial Holdings Ltd. now owns 987 shares of the open-source software company’s stock valued at $133,000 after acquiring an additional 981 shares during the period. Quad Cities Investment Group LLC bought a new position in Red Hat during the 2nd quarter valued at about $134,000. Summit Trail Advisors LLC lifted its stake in Red Hat by 17,117.4% during the 1st quarter. Summit Trail Advisors LLC now owns 137,395 shares of the open-source software company’s stock valued at $137,000 after acquiring an additional 136,597 shares during the period. Finally, Financial Architects Inc lifted its stake in Red Hat by 95.2% during the 2nd quarter. Financial Architects Inc now owns 1,025 shares of the open-source software company’s stock valued at $137,000 after acquiring an additional 500 shares during the period. Institutional investors own 95.11% of the company’s stock.
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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