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 ended on July at $187.71 and remained constant a neutral 0.00%.

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.

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 slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

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.

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 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%).

RHT stock chart (daily)

Weekly outlook

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%).

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 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 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. 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 Share

Red 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.
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 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.

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 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.
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 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:

RHT
Market cap$0.0 M
Total shares0.0 M
Float shares0.0 M
  - Institutional holdings (%)0.0%
  - Insider holdings (%)0.0%
Shares in short selling0.0%

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

Performance 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 :
Stock3m6m12m
RHTRed Hat2.93%6.62%27.15%

Red Hat competitors

Unfortunately, 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