BMO Capital Markets Lowers Red Hat (RHT) Price Target to $177.00

Red Hat (NYSE:RHT) had its price target decreased by equities researchers at BMO Capital Markets from $192.00 to $177.00 in a note issued to investors on Wednesday. The firm presently has a “market perform” rating on the open-source software company’s stock. BMO Capital Markets’ price target would suggest a potential upside of 31.41% from the stock’s current price.

Several other equities analysts also recently commented on the stock. Raymond James boosted their target price on shares of Red Hat from $139.00 to $164.00 and gave the stock an “outperform” rating in a report on Thursday, March 22nd. Zacks Investment Research raised shares of Red Hat from a “hold” rating to a “buy” rating and set a $173.00 target price on the stock in a report on Thursday, March 29th. Deutsche Bank boosted their target price on shares of Red Hat to $185.00 and gave the stock a “buy” rating in a report on Tuesday, April 17th. Barclays boosted their target price on shares of Red Hat from $145.00 to $165.00 and gave the stock an “overweight” rating in a report on Monday, March 19th. Finally, Citigroup boosted their target price on shares of Red Hat to $179.00 and gave the stock a “buy” rating in a report on Thursday, March 22nd. One equities 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 company. The company currently has an average rating of “Buy” and a consensus target price of $157.83.

Red Hat opened at $134.69 on Wednesday, MarketBeat.com reports. Red Hat has a one year low of $94.47 and a one year high of $177.70. The company has a current ratio of 1.28, a quick ratio of 1.36 and a debt-to-equity ratio of 0.39. The firm has a market capitalization of $24.60 billion, a PE ratio of 58.56, a P/E/G ratio of 3.38 and a beta of 1.07.

Red Hat (NYSE:RHT) last released its earnings results on Thursday, June 21st. The open-source software company reported $0.72 EPS for the quarter, topping the 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 firm had revenue of $813.53 million for the quarter, compared to the consensus estimate of $807.48 million. During the same quarter in the previous year, the firm earned $0.56 earnings per share. The company’s quarterly revenue was up 20.2% compared to the same quarter last year. equities research analysts predict that Red Hat will post 2.56 EPS for the current year.

Red Hat declared that its board has authorized a share buyback 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 buy up to 4% of its stock through open market purchases. Stock buyback plans are usually a sign that the company’s leadership believes its stock is undervalued.

In other Red Hat news, EVP Delisa Alexander sold 222 shares of the business’s stock in a transaction on Friday, April 13th. The shares were sold at an average price of $156.19, for a total transaction of $34,674.18. Following the transaction, the executive vice president now owns 35,027 shares in the company, valued at $5,470,867.13. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Arun Oberoi sold 15,000 shares of the business’s stock in a transaction on Monday, April 9th. The shares were sold at an average price of $153.58, for a total transaction of $2,303,700.00. Following the transaction, the executive vice president now owns 74,457 shares in the company, valued at approximately $11,435,106.06. The disclosure for this sale can be found here. Insiders have sold 107,376 shares of company stock worth $17,167,724 in the last quarter. Company insiders own 0.66% of the company’s stock.

A number of hedge funds have recently bought and sold shares of the business. Mount Yale Investment Advisors LLC bought a new position in shares of Red Hat in the first quarter worth about $103,000. We Are One Seven LLC bought a new position in shares of Red Hat in the fourth quarter worth about $105,000. Summit Trail Advisors LLC grew its holdings in shares of Red Hat by 17,117.4% in the first quarter. Summit Trail Advisors LLC now owns 137,395 shares of the open-source software company’s stock worth $137,000 after purchasing an additional 136,597 shares during the last quarter. Avestar Capital LLC bought a new position in shares of Red Hat in the fourth quarter worth about $168,000. Finally, Pitcairn Co. bought a new position in shares of Red Hat in the first quarter worth about $203,000. Institutional investors and hedge funds own 95.28% of the company’s stock.

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.

Analyst Recommendations for Red Hat (NYSE:RHT)

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