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?Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. That's why is so important to define your own trading plan that matches with your character as inversor. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.
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?
Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness.At Stocks2.com, we gathered 2 ratings published for RHT stock in the last 30 days.
|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 constant a neutral 0.00% and closed at $187.71.
Shares of Red Hat remained stable a neutral 0.00% and closed at $187.71. On June, RHT hit a new all time high, pushing higher than on June tops. Check different trading setups that use ATHs as triggers. Since April when RHT stock price broke up the SMA50d line, it gained $5.70 (3.13%).
Red Hat remained stable a tight 0.00% this week.
In a weekly time frame, 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 late December 2018 when SMA20w and SMA40w crossed up, RHT price gained $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 grew a 716.10%, with a yearly average of 35.80%. If you had invested right after RHT's IPO a $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 with a price of $189.40.
Red Hat stock price targetHow much a stock will be priced tomorrow or next week is quite unpredictable However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. 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 month we have not detected any price target for Red Hat stock by any trusted analyst.
Financials and fundamental analysis
Earnings date and Earnings per ShareRed Hat presented brilliant results for 2019-Q1 on March. Red Hat soared Earnings per Share (EPS) by 18.20%, beating experts estimates of $0.77. Red Hat posted $0.91.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsCompared to 2018, last anual sales report draw a super good increase of 15.12% to $3,362.07 M USD. Nonetheless, its income margin (compared to sales) gained to 12.91%, that is $433.99 million.
|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 reported $879.00 M in sales for 2019-Q1, a 3.80% up compared to previous quarter. Reported quarter income marked $139.49 million with a profit margin of 15.87%. Profit margin stepped up a 4.72% compared to previous quarter when profit margin was 11.15%. When comparing revenues to same quarter last year, Red Hat sales marked an astounding increase and boosted 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 a stock, it's worth to have a look its ownership structure.
Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Red Hat, of all outstanding shares are owned by its staff.
The following table compares ownership indicators for other stocks related to Red Hat:
|Market cap||$0.0 M|
|Total shares||0.0 M|
|Float shares||0.0 M|
|- Institutional holdings (%)||0.0%|
|- Insider holdings (%)||0.0%|
|Shares in short selling||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 performancePerformance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. In the following table, we compare Red Hat performance to :
Red Hat competitorsUnfortunately, we could not find any public company that could be defined as Red Hat competitor. This doesn't mean Red Hat does not have any competitor in the market, it's just we could not detected it.
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