Red Hat (RHT) Downgraded to “Neutral” at Citigroup

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Red Hat (NYSE:RHT) was downgraded by stock analysts at Citigroup from a “buy” rating to a “neutral” rating in a note issued to investors on Tuesday, The Fly reports.

A number of other research analysts also recently weighed in on the stock. Royal Bank of Canada upped their price objective on shares of Red Hat to $190.00 in a research report on Monday. Nomura decreased their price objective on shares of Red Hat from $182.00 to $175.00 and set a “buy” rating for the company in a research report on Thursday, September 20th. Stifel Nicolaus decreased their price objective on shares of Red Hat from $172.00 to $160.00 and set a “buy” rating for the company in a research report on Thursday, September 20th. Needham & Company LLC began coverage on shares of Red Hat in a research report on Monday, October 22nd. They issued a “buy” rating and a $183.00 price objective for the company. Finally, ValuEngine downgraded shares of Red Hat from a “buy” rating to a “hold” rating in a research report on Tuesday, October 9th. One equities research analyst has rated the stock with a sell rating, fourteen have assigned a hold rating, fifteen have issued a buy rating and one has given a strong buy rating to the company. The company has a consensus rating of “Buy” and an average target price of $162.03.

Shares of RHT opened at $169.63 on Tuesday. The firm has a market cap of $20.53 billion, a PE ratio of 73.75, a P/E/G ratio of 3.03 and a beta of 1.14. The company has a debt-to-equity ratio of 0.40, a quick ratio of 1.23 and a current ratio of 1.23. Red Hat has a 1-year low of $115.31 and a 1-year high of $177.70.

Red Hat (NYSE:RHT) last posted its quarterly earnings results on Wednesday, September 19th. The open-source software company reported $0.85 EPS for the quarter, beating the consensus estimate of $0.82 by $0.03. Red Hat had a net margin of 9.15% and a return on equity of 31.80%. The company had revenue of $822.75 million for the quarter, compared to analyst estimates of $828.12 million. During the same period in the prior year, the company earned $0.77 earnings per share. The firm’s revenue was up 13.7% on a year-over-year basis. Sell-side analysts anticipate that Red Hat will post 2.57 EPS for the current fiscal year.

In related news, EVP Delisa Alexander sold 960 shares of the stock in a transaction that occurred on Wednesday, October 17th. The shares were sold at an average price of $125.03, for a total transaction of $120,028.80. Following the completion of the transaction, the executive vice president now owns 33,217 shares of the company’s stock, valued at approximately $4,153,121.51. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO James M. Whitehurst sold 44,472 shares of the stock in a transaction that occurred on 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 transaction, the chief executive officer now directly owns 445,557 shares of the company’s stock, valued at approximately $63,518,605.92. The disclosure for this sale can be found here. Insiders have sold a total of 48,103 shares of company stock valued at $6,793,912 in the last ninety days. 0.58% of the stock is currently owned by corporate insiders.

Institutional investors have recently added to or reduced their stakes in the business. Mount Yale Investment Advisors LLC acquired a new stake in shares of Red Hat in the 1st quarter valued at $103,000. Migdal Insurance & Financial Holdings Ltd. raised its holdings in shares of Red Hat by 16,350.0% in 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 purchasing an additional 981 shares in the last quarter. Quad Cities Investment Group LLC acquired a new stake in shares of Red Hat in the 2nd quarter valued at $134,000. Financial Architects Inc raised its holdings in shares of Red Hat by 95.2% in the 2nd quarter. Financial Architects Inc now owns 1,025 shares of the open-source software company’s stock valued at $137,000 after purchasing an additional 500 shares in the last quarter. Finally, Truvestments Capital LLC acquired a new stake in shares of Red Hat in the 3rd quarter valued at $138,000. Institutional investors own 96.06% 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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