Jefferies Group Equities Analysts Cut Earnings Estimates for Red Hat, Inc. (RHT)

Red Hat, Inc. (NYSE:RHT) – Research analysts at Jefferies Group reduced their Q3 2018 earnings per share estimates for Red Hat in a report released on Monday. Jefferies Group analyst J. Difucci now anticipates that the open-source software company will post earnings of $0.49 per share for the quarter, down from their prior forecast of $0.53. Jefferies Group has a “Hold” rating and a $100.00 price objective on the stock. Jefferies Group also issued estimates for Red Hat’s Q4 2018 earnings at $0.54 EPS, FY2018 earnings at $2.00 EPS, Q2 2019 earnings at $0.65 EPS, Q3 2019 earnings at $0.60 EPS, Q4 2019 earnings at $0.66 EPS and FY2019 earnings at $2.37 EPS.

RHT has been the topic of several other research reports. Zacks Investment Research cut shares of Red Hat from a “strong-buy” rating to a “hold” rating in a report on Tuesday, August 22nd. Drexel Hamilton reiterated a “buy” rating and issued a $127.00 price target (up previously from $110.00) on shares of Red Hat in a report on Wednesday, June 21st. Piper Jaffray Companies reiterated a “hold” rating and issued a $100.00 price target on shares of Red Hat in a report on Sunday, August 27th. Credit Suisse Group started coverage on shares of Red Hat in a report on Tuesday, September 5th. They issued a “neutral” rating and a $111.00 price target on the stock. Finally, KeyCorp reiterated an “overweight” rating and issued a $121.00 price target on shares of Red Hat in a report on Friday, September 8th. Ten equities research analysts have rated the stock with a hold rating and twenty-four have issued a buy rating to the company’s stock. Red Hat currently has a consensus rating of “Buy” and a consensus price target of $110.61.

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Red Hat (NYSE:RHT) opened at 110.86 on Thursday. The company’s 50-day moving average is $103.43 and its 200 day moving average is $93.28. Red Hat has a 52 week low of $68.54 and a 52 week high of $110.93. The company has a market capitalization of $19.67 billion, a price-to-earnings ratio of 75.93 and a beta of 1.24.

Red Hat (NYSE:RHT) last issued its earnings results on Monday, September 25th. The open-source software company reported $0.77 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.67 by $0.10. The business had revenue of $723.60 million for the quarter, compared to analyst estimates of $699.56 million. Red Hat had a net margin of 11.49% and a return on equity of 25.27%. Red Hat’s revenue was up 20.6% on a year-over-year basis. During the same period in the prior year, the firm earned $0.55 earnings per share.

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. D.A. Davidson & CO. increased its position in shares of Red Hat by 6.8% during the 2nd quarter. D.A. Davidson & CO. now owns 1,071 shares of the open-source software company’s stock valued at $102,000 after purchasing an additional 68 shares during the last quarter. Nordea Investment Management AB increased its position in shares of Red Hat by 1.0% during the 1st quarter. Nordea Investment Management AB now owns 6,919 shares of the open-source software company’s stock valued at $598,000 after purchasing an additional 70 shares during the last quarter. Advantus Capital Management Inc increased its position in shares of Red Hat by 0.5% during the 1st quarter. Advantus Capital Management Inc now owns 17,955 shares of the open-source software company’s stock valued at $1,553,000 after purchasing an additional 93 shares during the last quarter. Gyroscope Capital Management Group LLC increased its position in shares of Red Hat by 4.0% during the 2nd quarter. Gyroscope Capital Management Group LLC now owns 2,429 shares of the open-source software company’s stock valued at $233,000 after purchasing an additional 93 shares during the last quarter. Finally, RB Capital Management LLC increased its position in shares of Red Hat by 2.6% during the 2nd quarter. RB Capital Management LLC now owns 3,875 shares of the open-source software company’s stock valued at $371,000 after purchasing an additional 100 shares during the last quarter. 94.00% of the stock is owned by hedge funds and other institutional investors.

In other news, CEO James M. Whitehurst sold 12,000 shares of the company’s stock in a transaction dated Monday, July 3rd. The shares were sold at an average price of $95.70, for a total transaction of $1,148,400.00. Following the completion of the sale, the chief executive officer now owns 422,873 shares of the company’s stock, valued at approximately $40,468,946.10. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Michael Cunningham sold 4,000 shares of the company’s stock in a transaction dated Friday, July 7th. The shares were sold at an average price of $96.59, for a total transaction of $386,360.00. Following the sale, the executive vice president now directly owns 30,050 shares of the company’s stock, valued at approximately $2,902,529.50. The disclosure for this sale can be found here. In the last three months, insiders sold 40,081 shares of company stock valued at $3,878,714. 0.66% of the stock is owned by insiders.

About Red Hat

Red Hat, Inc (Red Hat) provides open source software solutions, using a community-powered approach to develop and offer operating system, virtualization, management, middleware, cloud, mobile and storage technologies. Red Hat operates through three geographical segments: the Americas, including the United States, Canada and Latin America; EMEA, including Europe, Middle East and Africa, and Asia Pacific.

Earnings History and Estimates for Red Hat (NYSE:RHT)

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