Red Hat (NYSE:RHT) will release its earnings data after the market closes on Wednesday, September 19th. Analysts expect Red Hat to post earnings of $0.59 per share for the quarter. Red Hat has set its Q2 guidance at $0.81 EPS and its FY19 guidance at $3.44-3.48 EPS.
Red Hat (NYSE:RHT) last released its quarterly earnings results on Thursday, June 21st. The open-source software company reported $0.72 EPS for the quarter, beating the Zacks’ consensus estimate of $0.69 by $0.03. The firm had revenue of $813.53 million for the quarter, compared to analyst estimates of $807.48 million. Red Hat had a net margin of 9.77% and a return on equity of 30.40%. The company’s revenue for the quarter was up 20.2% compared to the same quarter last year. During the same period in the previous year, the business earned $0.56 earnings per share. On average, analysts expect Red Hat to post $3 EPS for the current fiscal year and $3 EPS for the next fiscal year.
NYSE:RHT opened at $150.89 on Wednesday. The stock has a market capitalization of $26.25 billion, a price-to-earnings ratio of 66.36, a PEG ratio of 3.47 and a beta of 1.07. Red Hat has a 12 month low of $104.51 and a 12 month high of $177.70. 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 declared that its Board of Directors has initiated a share buyback program on Thursday, June 21st that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the open-source software company to repurchase up to 4% of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s management believes its shares are undervalued.
In related news, 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 value of $1,379,385.00. Following the transaction, the chief executive officer now directly owns 374,286 shares in the company, valued at $54,271,470. 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 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 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 $63,518,605.92. 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.
A number of brokerages have recently issued reports on RHT. Zacks Investment Research upgraded shares of Red Hat from a “hold” rating to a “buy” rating and set a $159.00 target price on the stock in a research report on Tuesday, June 26th. Monness Crespi & Hardt reduced their target price on shares of Red Hat from $200.00 to $186.00 and set a “buy” rating on the stock in a research report on Friday, June 22nd. ValuEngine lowered shares of Red Hat from a “strong-buy” rating to a “buy” rating in a research report on Friday, June 22nd. BMO Capital Markets upped their target price on shares of Red Hat from $180.00 to $192.00 and gave the stock a “market perform” rating in a research report on Tuesday, June 19th. Finally, Wells Fargo & Co reiterated an “outperform” rating and set a $170.00 target price on shares of Red Hat in a research report on Friday, June 22nd. One investment analyst has rated the stock with a sell rating, eleven have assigned a hold rating and nineteen have issued a buy rating to the company. The stock presently has a consensus rating of “Buy” and a consensus target price of $158.03.
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.
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