Red Hat stock: buy or sell?

RHT stock price: $187.71 0.00% At close on July 8th, 2019

Updated on:
July 8th, 2019

4

Red Hat shares remained steady 0.00% to $187.71 on Jul 8th.

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.

Should I buy Red Hat stock?

Make a decision about when to buy or sell stocks is one of the hardest parts of being a trader or investor. Following a trading strategy helps to make decisions easier, quicker and with less hesitations. At Stocks2.com, we use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

Currently, Red Hat stock doesn't match any of these trading strategies, so our recommendation is not to buy.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean RHT will fall in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is Red Hat stock a buy?

Banks and financial institutions post stock ratings everyday. At Stocks2.com, we detected 2 ratings published for RHT stock in the last month.

Is RHT a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-7-11Robert W. Bairdn/aNot Rated
2019-6-21William BlairOutperformMarket Perform

Red Hat stock analysis

Daily outlook

Shares of Red Hat remained steady a tight 0.00% and closed at $187.71.

Red Hat shares remained constant 0.00% to $187.71 on Jul/8. On June 18th, RHT hit a new all time high, pushing higher than on June/17 tops. Check different trading setups that use ATHs as triggers. Since price and SMA50d lines crossed up on April, RHT climbed $5.70 (3.13%).

RHT stock chart (daily)

Weekly outlook

Red Hat shares remained steady 0.00% last week, ending at $187.71.

Red Hat stock is drawing an uptrend with rising tops and bottoms. Now trading in between its last bottom and last top, RHT might consolidate in a flat-base, waiting to break out over or down under . Not so far away is the last price record Red Hat marked by mid June. Since SMA20d and SMA40w crossed up late December 2018, RHT price climbed $13.12 per share (7.51%). Since price and SMA40w lines crossed up late October 2018, RHT climbed $71.03 (60.88%).

RHT stock chart (weekly)

Red Hat stock price history

Red Hat IPO was on August 11th, 1999 at $23.00 per share1. Since then, RHT stock surged a 716.10%, with a yearly average of 37.70%. If you had invested $1,000 in Red Hat stock in 1999, it would worth $7,161.00 today.

1: Adjusted price after possible price splits or reverse-splits.

Red Hat stock historical price chart

RHT stock reached all-time highs on June/18 with a price of $189.40.

Red Hat stock price target

Nobody can reliably foresee how stock prices may evolve in the future. However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. For the last 30 days we have not detected any price forecast for Red Hat stock by any trusted analyst.

Financials and fundamental analysis

Earnings date and Earnings per Share

Red Hat presented wonderful results for 2019-Q1 on March. Red Hat soared Earnings per Share (EPS) by 18.20%, beating analysts consensus of $0.77. Red Hat posted $0.91.
RHT earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a0.4n/a
2017-Q3-n/a0.53n/a
2017-Q42018-03-260.81n/an/a
2018-Q12018-03-260.590.7323.7%
2018-Q22018-06-210.490.538.2%
2018-Q32018-09-190.590.636.8%
2018-Q42018-12-170.630.711.1%
2019-Q12019-03-250.770.9118.2%
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

In 2019, Red Hat annual revenues climbed an extraordinary 15.12% to $3,362.07 M USD from $2,920.46 marked in 2018. When comparing 2019 vs 2018, nevertheless, profit margin (that is, the net income divided by revenues) inched a 3.94% to 12.91%.

RHT annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2014$1,530 M-$178 M11.7%-
2015$1,789 M16.96%$180 M10.1%1.07%
2016$2,052 M14.68%$199 M9.7%10.63%
2017$2,412 M17.52%$254 M10.5%27.26%
2018$2,920 M21.09%$262 M9.0%3.21%
2019$3,362 M15.12%$434 M12.9%65.74%

Quarterly financial results

Red Hat posted $879.00 M in revenues for 2019-Q1, a 3.80% improvement compared to previous quarter. Reported quarter earnings marked $139.49 million with a profit margin of 15.87%. Profit margin appreciated a 4.72% compared to previous quarter when profit margin was 11.15%. When comparing turnover to same quarter last year, Red Hat sales marked a dazzling gain and skyrocketed a 13.81%. Looking back to recent quarterly results, Red Hat posted 7 positive quarters in a row.
RHT quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$677 M-$73 M10.8%-
2017-Q3$723 M6.88%$97 M13.4%32.34%
2017-Q4$748 M3.40%$101 M13.5%4.59%
2018-Q1$772 M3.26%$-15 M-2.0%-115.01%
2018-Q2$814 M5.33%$113 M13.9%-844.28%
2018-Q3$823 M1.13%$87 M10.6%-23.27%
2018-Q4$847 M2.92%$94 M11.2%8.75%
2019-Q1$879 M3.80%$139 M15.9%47.69%

Red Hat ownership

When you are planning to invest in shares of a stock, it's worth to have a look its ownership structure.

Red Hat shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 0.67% of all shares.

Bearish positions for RHT stock account 0.00%, no big difference from last month.

For a better understanding, the following table shows ownership data compared to other related companies:

RHTCTXSGOOGLHPQIBM
Market cap$33.0 B$13.3 B$343.0 B$32.1 B$126.6 B
Total shares176.0 M131.7 M299.4 M1,510.0 M886.6 M
Float shares171.8 M130.8 M602.8 M1,500.0 M885.9 M
  - Institutional holdings (%)92.0%103.2%81.0%83.9%57.5%
  - Insider holdings (%)0.7%1.0%0.2%0.2%0.1%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

Red Hat summary

Monday, July 8th, 2019
Open$187.70
Close$187.71
Day range$187.60 - $187.81
Previous close$187.71
Session gain0.00%
Average true range$1.13
50d mov avg$185.54
100d mov avg$183.84
200d mov avg$172.86
Daily patternlt01a
Weekly pattern lt06a

Red Hat performance

Stocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. For Red Hat, the comparison is made against Citrix Systems, Alphabet, HP, International Business Machines, Microsoft, NetApp, Oracle, Symantec and Vmware.
Stock3m6m12m
RHTRed Hat2.93%6.62%27.15%
CTXSCitrix Systems-1.03%-4.32%-7.19%
GOOGLAlphabet-6.33%7.60%-4.91%
HPQHP5.89%1.97%-7.82%
IBMInternational Bus...0.06%20.30%2.52%
MSFTMicrosoft15.27%36.19%33.88%
NTAPNetApp-18.55%0.48%-24.25%
ORCLOracle9.74%24.89%25.02%
SYMCSymantec7.12%29.53%19.71%
VMWVmware-11.99%15.68%31.75%

Red Hat competitors

We picked a few stocks to conform a list of Red Hat competitors to examine if you are interested in investing in RHT:

Latest Red Hat stock news