Red Hat Inc to Post Q4 2019 Earnings of $0.79 Per Share, KeyCorp Forecasts (RHT)

Red Hat Inc (NYSE:RHT) – KeyCorp increased their Q4 2019 EPS estimates for shares of Red Hat in a report released on Wednesday, September 19th. KeyCorp analyst A. Kurtz now anticipates that the open-source software company will post earnings per share of $0.79 for the quarter, up from their previous forecast of $0.78. KeyCorp has a “Overweight” rating and a $180.00 price target on the stock.

Red Hat (NYSE:RHT) last issued its quarterly earnings data on Wednesday, September 19th. The open-source software company reported $0.85 earnings per share for the quarter, topping the consensus estimate of $0.82 by $0.03. The company had revenue of $822.75 million during the quarter, compared to analyst estimates of $828.12 million. Red Hat had a return on equity of 31.80% and a net margin of 9.15%. The firm’s revenue for the quarter was up 13.7% compared to the same quarter last year. During the same period in the prior year, the business posted $0.77 earnings per share.

Several other brokerages have also weighed in on RHT. Raymond James lowered Red Hat from an “outperform” rating to a “market perform” rating and set a $84.00 price objective for the company. in a research report on Tuesday, June 19th. BMO Capital Markets increased their price objective on Red Hat from $180.00 to $192.00 and gave the stock a “market perform” rating in a research report on Tuesday, June 19th. Barclays reiterated an “overweight” rating and issued a $186.00 price objective on shares of Red Hat in a research report on Thursday, June 14th. Zacks Investment Research lowered Red Hat from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, May 30th. Finally, Monness Crespi & Hardt lowered their price objective on Red Hat from $200.00 to $186.00 and set a “buy” rating for the company in a research report on Friday, June 22nd. One equities research analyst has rated the stock with a sell rating, eleven have assigned a hold rating and twenty have assigned a buy rating to the company. Red Hat presently has a consensus rating of “Buy” and a consensus price target of $154.53.

Shares of Red Hat stock opened at $134.86 on Monday. The company has a market capitalization of $23.88 billion, a P/E ratio of 58.63, a price-to-earnings-growth ratio of 3.51 and a beta of 1.07. Red Hat has a fifty-two week low of $104.51 and a fifty-two week high of $177.70. The company has a quick ratio of 1.28, a current ratio of 1.23 and a debt-to-equity ratio of 0.40.

Red Hat announced that its board has authorized a share 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 usually an indication that the company’s board of directors believes its shares are undervalued.

In other news, EVP Delisa Alexander sold 2,305 shares of the stock in a transaction on Tuesday, July 17th. The stock was sold at an average price of $145.00, for a total value of $334,225.00. Following the sale, the executive vice president now directly owns 36,309 shares in the company, valued at $5,264,805. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, insider Michael A. Kelly sold 636 shares of the stock in a transaction on Tuesday, July 17th. The shares were sold at an average price of $145.00, for a total value of $92,220.00. Following the completion of the sale, the insider now owns 5,965 shares in the company, valued at $864,925. The disclosure for this sale can be found here. Over the last quarter, insiders sold 56,926 shares of company stock worth $8,145,758. Insiders own 0.58% of the company’s stock.

Hedge funds and other institutional investors have recently made changes to their positions in the company. Mount Yale Investment Advisors LLC acquired a new stake in shares of Red Hat in the first quarter valued at $103,000. Migdal Insurance & Financial Holdings Ltd. raised its stake in Red Hat by 16,350.0% in the second quarter. Migdal Insurance & Financial Holdings Ltd. now owns 987 shares of the open-source software company’s stock valued at $133,000 after buying an additional 981 shares in the last quarter. Quad Cities Investment Group LLC acquired a new stake in Red Hat in the second quarter valued at $134,000. Summit Trail Advisors LLC raised its stake in 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 valued at $137,000 after buying an additional 136,597 shares in the last quarter. Finally, Financial Architects Inc raised its stake in Red Hat by 95.2% in the second quarter. Financial Architects Inc now owns 1,025 shares of the open-source software company’s stock valued at $137,000 after buying an additional 500 shares in the last quarter. Institutional investors and hedge funds own 95.20% 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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Earnings History and Estimates for Red Hat (NYSE:RHT)

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