Red Hat stock: buy or sell?
May 20th, 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?You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. Trading strategies are meant for helping you in the decision process of what stocks to choose and when is the best time to buy them. At Stocks2.com, we use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.
Currently, 2 buy setups are elegible for Red Hat stock right now:
|New all-time high||Yes|
|New 52 week high||Yes|
|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.Unfortunately, we couldn't find any rating for RHT stock for the last month.
Red Hat stock analysis
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%).
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%).
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 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. 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 ShareOn 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.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsCompared 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.
|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 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.
|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 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:
|Market cap||$33.0 B||$12.7 B||$350.0 B||$29.1 B||$119.1 B|
|Total shares||177.8 M||132.1 M||299.4 M||1,530.0 M||886.6 M|
|Float shares||172.6 M||130.8 M||602.8 M||1,540.0 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, May 20th, 2019|
|Day range||$185.00 - $186.06|
|Average true range||$0.68|
|50d mov avg||$182.90|
|100d mov avg||$180.50|
|200d mov avg||$165.91|
Red Hat performanceTo 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:
Red Hat competitorsWe picked a few stocks to conform a list of Red Hat competitors to review 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
- InvestorPlaceRed Hat Earnings: RHT Stock Edges Higher After Turning Q4 ProfitMarch 25, 2019
- Seeking AlphaRed Hat Merger: Good Deal For Investors With Time Frames Under 10 YearsFebruary 20, 2019
- Seeking AlphaRed Hat: Why I'm Playing The IBM Deal SpreadJanuary 28, 2019
- InvestorPlaceIBM Stock’s Red Hat Era Begins With Its Q4 ReportJanuary 21, 2019
- InvestorPlaceRed Hat Earnings: RHT Stock Unmoved After Topping Q3 Earnings GuidanceDecember 17, 2018