Red Hat stock: buy or sell?

RHT stock price: $185.66 0.08% At close on May 20th, 2019

Updated on:
May 20th, 2019

5

Red Hat shares remained constant 0.08% today and touched a new all time high at $186.06.

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?

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Currently, 2 buy setups are elegible for Red Hat stock right now:

Buy setupElegible
New all-time highYes
New 52 week highYes
Price crossing up 200d MANo
100d MA crossing up 200d MANo

Is Red Hat stock a buy?

Banks and financial institutions post stock ratings everyday. Unfortunately, we couldn't find any rating for RHT stock for the last month.

Red Hat stock analysis

Daily outlook

Shares of Red Hat closed today at $185.66 after reaching a new all time high ($186.06) and remained constant a tight 0.08%.

Shares of Red Hat closed today at $185.66 after marking a new all time high ($186.06) and remained stable a tight 0.08%. Since last January when SMA100d and SMA200d crossed up, RHT price gained $11.16 per share (6.40%). Since price and SMA50d lines crossed up on April/23, RHT climbed $3.65 (2.01%).

RHT stock chart (daily)

Weekly outlook

Red Hat stayed constant 0.08% this week and reached a new all time high at $186.06. This week was the 5th green week in a row.

Price pattern shows an uptrend with two rising tops and bottoms, and now finally trading above the $179.49 resistance. Since late December 2018 when SMA20w and SMA40w crossed up, RHT price gained $11.07 per share (6.34%). Since late October 2018 when RHT stock price broke up the SMA40w line, it gained $68.98 (59.12%).

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 grew a 707.20%, with an average of 37.20% per year. If you had invested right after RHT's IPO a $1,000 in Red Hat stock in 1999, it would worth $7,072.00 today.

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

Red Hat stock historical price chart

RHT stock reached all-time highs today with a price of $186.06.

Red Hat stock price target

How 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. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. For the last 30 days we have not detected any price prediction for Red Hat stock by any trusted analyst.

Financials and fundamental analysis

Earnings date and Earnings per Share

On March, Red Hat presented its financial report, posting a brilliant growth for the Earnings per Share (EPS). Analyst expected $0.77 per share, but 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

Compared to 2018, last anual sales report draw an astounding increase of 15.12% to $3,362.07 M USD. However, its earnings margin (compared to sales) raised to 12.91%, that is $433.99 million.

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 reported $879.00 M in sales for 2019-Q1, a 3.80% up compared to previous quarter. Reported quarter income marked $139.49 M 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 turnover to same quarter last year, Red Hat sales marked an outstanding gain and boosted a 13.81%. Looking back to recent quarterly results, Red Hat posted 7 negative 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 a stock, it's worth to check 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, 0.67% of all outstanding shares are owned by its staff.

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

The following table compares ownership indicators for other stocks related to Red Hat:

RHTCTXSGOOGLHPQIBM
Market cap$33.0 B$12.7 B$350.0 B$29.1 B$119.1 B
Total shares177.8 M132.1 M299.4 M1,530.0 M886.6 M
Float shares172.6 M130.8 M602.8 M1,540.0 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, May 20th, 2019
Open$185.50
Close$185.66
Day range$185.00 - $186.06
Previous close$185.51
Session gain0.08%
Average true range$0.68
50d mov avg$182.90
100d mov avg$180.50
200d mov avg$165.91
Daily pattern
Weekly pattern lb02c

Red Hat performance

To better understand Red Hat performance you must compare its gains with other related stocks in same sector or industry. In the following table, we compare Red Hat to Citrix Systems, Alphabet, HP, International Business Machines, Microsoft, NetApp, Oracle, Symantec and Vmware:
Stock3m6m12m
RHTRed Hat1.55%6.00%12.45%
CTXSCitrix Systems-9.73%-11.32%-8.46%
GOOGLAlphabet4.39%9.41%9.27%
HPQHP-17.59%-20.05%-11.74%
IBMInternational Bus...-1.53%13.10%-2.31%
MSFTMicrosoft19.29%19.21%35.07%
NTAPNetApp8.50%-2.73%2.22%
ORCLOracle5.85%7.41%19.60%
SYMCSymantec-14.30%-13.78%-9.37%
VMWVmware20.01%56.13%76.37%

Red Hat competitors

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

Latest Red Hat stock news