Shares of Red Hat Inc (NYSE:RHT) are up significantly in after hours trading today after the company reported their third quarter financials. The company beat analyst expectations, reporting an EPS of $0.48 on revenue of $524 million. This compares to an EPS of $0.42 and $455.90 million in revenue this period last year.
“Our investments in technologies and partnerships continued to generate strong results as customers transform their IT infrastructure through the increasing adoption of open source technologies and cloud computing,” explained Red Hat Inc. CEO Jim Whitehurst. “During the third quarter, we strengthened our leadership position in the open hybrid cloud by introducing new technologies and launching a strategic partnership with Microsoft and its Azure Cloud. Our initiatives are focused on enabling our customers to build, deploy and manage their applications across multiple environments and infrastructures.”
Shares are up $5.01 or 6.36% in after hours.
The stock increased 0.04% or $0.03 during the last trading session, hitting $78.8. About 3.00M shares traded hands or up 106.90% from the average. RHT has risen 0.97% since May 14, 2015 and is currently uptrending. It has outperformed the S&P500 by 3.24%.
From a total of 9 analysts covering Red Hat (NYSE:RHT) stock, 8 rate it a “Buy”, 0 a “Sell”, and 1 a “Hold”. This means that 89% of the ratings are positive. The highest target price is $90 while the lowest target price is $82. The mean of all analyst targets is $86.50 which is 9.77% above today’s ($78.8) stock price. Red Hat was the topic of 11 analyst reports since August 25, 2015 according to the firm StockzIntelligence Inc. RBC Capital Markets maintained shares on December 8 with a “Outperform” rating. BTIG Research initiated shares with a”Buy” rating and a $85 target share price in their report from a September 10. Cowen & Co downgraded RHT stock in a recent report from October 22 to a “Market Perform” rating. Finally, Credit Suisse maintained the stock with a “Buy” rating in a report they issued on a September 22.
The institutional sentiment increased to 1.17 in Q2 2015. It’s up 0.03, from 1.14 in 2015Q2. The ratio improved, as 43 funds sold all their Red Hat Inc shares they owned while 148 reduced their positions. 66 funds bought stakes while 158 increased their total positions. Institutions now own 152.76 million shares which is 9.93% less than the previous share count of 169.60 million in 2015Q2.
Gagnon Advisors Llc holds 9.15% of its total portfolio in Red Hat Inc, equating to 156,477 shares. Gagnon Securities Llc owns 197,411 shares representing 6.94% of their total US portfolio. Moreover, Contour Asset Management Llc has 4.38% of their total portfolio invested in the company, equating to 1.06 million shares. The Maryland-based Df Dent & Co Inc has a total of 3.95% of their portfolio invested in the stock. Tremblant Capital Group, a New York-based fund reported 759,826 shares owned.
Red Hat, Inc. is a provider of open source software solutions, using a community-powered approach to develop and offer operating system, virtualization, middleware, storage and cloud technologies. The company has a market cap of $14.39 billion. The Firm employs an open source development model. It has 75.46 P/E ratio. The open source development model allows it to use the collective input, resources and knowledge of a global community of contributors who can collaborate to develop, maintain and enhance software because the human-readable source code for that software is publicly available and licenses permit modification.