Investor Insights on Red Hat Inc (NYSE:RHT)

[EDGAR] Red Hat Inc (NYSE:RHT)(TREND ANALYSIS) Entry into Material Agreement with a Named Executive Officer

As previously disclosed, Charles E. Peters, Jr. will retire as an employee and Executive Vice President of Red Hat, Inc. (the “Company”) effective July 31, 2015.

Mr. Peters and the Company have entered into a letter agreement dated July 24, 2015 (the “Agreement”), pursuant to which Mr. Peters has agreed to provide at the Company’s request consulting services that may include transition assistance for Frank Calderoni, the Company’s new Executive Vice President, Operations and Chief Financial Officer, and service as a director or officer of certain of the Company’s subsidiaries. The term of the Agreement will expire on July 31, 2018, unless the Agreement is terminated earlier by the Company for an unremedied breach of a material provision of the Agreement.

Stock Performance: Click here for a free comprehensive Trend Analysis Report

Red Hat Inc (NYSE:RHT) stock is currently trading 3.1% below its 52-week-high, 50.31% above its 52-week-low. The 1-year stock price history is in the range of $52.53 – $81.49. Red Hat Inc (RHT) has a price to earnings ratio of 78.18 versus Technology sector average of 21.05. RHT stock price has outperformed the S&P 500 by 13%. The Applications Software company is currently valued at $14.49 billion and its share price closed the last trading session at $78.96. The stock has a 50-day moving average of $78.35 and a 200-day moving average of $73.18.

Red Hat Inc (RHT) current short interest stands at 4.31 million shares. It has decreased by 15% from the same period of last month. Around 3% of the company’s shares, which are float, are short sold. With a 10-days average volume of 0.94 million shares, the number of days required to cover the short positions stand at 4.6 days.

The company is expected to announce next quarter earnings on September 17, at consensus estimate of $0.29. Red Hat Inc (RHT) reported last quarter earnings on June 18. The Applications Software company announced earnings per share of $0.31 against a consensus Street estimate of $0.27, beating the average estimate by $0.04. This corresponds to an increase of $0.03 compared to the same quarter of the previous fiscal year.

Is this a Buying Opportunity? Click here for a free Trend Analysis Report

There are currently thirty-one analysts that cover Red Hat Inc stock. Of those thirty-one, twenty-two have a Buy rating, eight have a Hold rating and one has a Sell rating. On a consensus basis this yields to an Overweight rating. The consensus target price stands at $82.96.

A recent analyst activity consisted of Cantor Fitzgerald reiterating their Buy stance on June 19. Cantor Fitzgerald increased their price target on RHT from $85 to $90. This corresponds to a 13.98% upside from the last closing price. On the date of report, the stock closed at $79.3.

UBS reiterated their Buy stance on the same day, and increased their price target on RHT stock from $78 to $88. This corresponds to a 11.45% upside from the last closing price. On the date of report, the stock closed at $79.3.

Another research firm was Stifel Nicolaus who reiterated their Buy stance on June 19. Stifel Nicolaus increased their price target on Red Hat Inc from $79 to $85. This translates to a 7.65% upside from the last closing price. On the date of report, the stock closed at $79.3.

Company profile

Red Hat, Inc. develops and provides open source software and services, including the Red Hat Linux operating system. The Company’s Web site offers information and news about open source software and provides an online community of open source software users and developers.

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