Red Hat stock: buy or sell?
July 8th, 2019
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.
|New all-time high||No|
|New 52 week high||No|
|Price crossing up 200d MA||No|
|100d MA crossing up 200d MA||No|
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.
|Date||Analyst / Broker||Previous rating||Current rating|
|2019-7-11||Robert W. Baird||n/a||Not Rated|
|2019-6-21||William Blair||Outperform||Market Perform|
Red Hat stock analysis
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%).
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%).
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 targetNobody 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 ShareRed 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.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsIn 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%.
|2014||$1,530 M||-||$178 M11.7%||-|
|2015||$1,789 M||16.96%||$180 M10.1%||1.07%|
|2016||$2,052 M||14.68%||$199 M9.7%||10.63%|
|2017||$2,412 M||17.52%||$254 M10.5%||27.26%|
|2018||$2,920 M||21.09%||$262 M9.0%||3.21%|
|2019||$3,362 M||15.12%||$434 M12.9%||65.74%|
Quarterly financial resultsRed 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.
|2017-Q2||$677 M||-||$73 M10.8%||-|
|2017-Q3||$723 M||6.88%||$97 M13.4%||32.34%|
|2017-Q4||$748 M||3.40%||$101 M13.5%||4.59%|
|2018-Q1||$772 M||3.26%||$-15 M-2.0%||-115.01%|
|2018-Q2||$814 M||5.33%||$113 M13.9%||-844.28%|
|2018-Q3||$823 M||1.13%||$87 M10.6%||-23.27%|
|2018-Q4||$847 M||2.92%||$94 M11.2%||8.75%|
|2019-Q1||$879 M||3.80%||$139 M15.9%||47.69%|
Red Hat ownershipWhen 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:
|Market cap||$33.0 B||$13.3 B||$343.0 B||$32.1 B||$126.6 B|
|Total shares||176.0 M||131.7 M||299.4 M||1,510.0 M||886.6 M|
|Float shares||171.8 M||130.8 M||602.8 M||1,500.0 M||885.9 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 selling||0.0%||0.0%||0.0%||0.0%||0.0%|
Red Hat summary
|Monday, July 8th, 2019|
|Day range||$187.60 - $187.81|
|Average true range||$1.13|
|50d mov avg||$185.54|
|100d mov avg||$183.84|
|200d mov avg||$172.86|
Red Hat performanceStocks 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.
Red Hat competitorsWe picked a few stocks to conform a list of Red Hat competitors to examine if you are interested in investing in RHT:
- Citrix Systems (CTXS)
- Alphabet (GOOGL)
- HP (HPQ)
- International Business Machines (IBM)
- Microsoft (MSFT)
- NetApp (NTAP)
- Oracle (ORCL)
- Symantec (SYMC)
- Vmware (VMW)
Latest Red Hat stock news
- InvestorPlaceIBM Stock’s Purchase of Red Hat Opens to Skeptical ReviewsJuly 11, 2019
- InvestorPlaceIBM, RHT: 8 Things for Investors to Know About the IBM-Red Hat DealJuly 9, 2019
- InvestorPlaceRed Hat Earnings: RHT Stock Edges Higher on Q1 Revenue BeatJune 20, 2019
- InvestorPlaceWill IBM’s Huge Bet on Red Hat Pay Off?June 4, 2019
- InvestorPlaceRed Hat Earnings: RHT Stock Edges Higher After Turning Q4 ProfitMarch 25, 2019