Red Hat Received its Third Buy in a Row

By George MacDonald

According to The Fly, after Oppenheimer and Barclays assigned a Buy rating to Red Hat in the last month, the company received another Buy, this time from RBC Capital. Analyst Matthew Hedberg reiterated a Buy rating on Red Hat (NYSE: RHT) today and set a price target of $95. The company’s shares opened today at $76.35.

According to TipRanks.com, Hedberg is a 3-star analyst with an average return of 0.9% and a 50.0% success rate. Hedberg covers the Technology sector, focusing on stocks such as Verint Systems Inc., Palo Alto Networks, and Informatica Corp.

Currently, the analyst consensus on Red Hat is Strong Buy and the average price target is $88.09, representing a 15.4% upside

. In a report issued on June 6, Oppenheimer also reiterated a Buy rating on the stock with a $88 price target.

Based on Red Hat`s latest earnings report from February 29, the company posted quarterly revenue of $543.5M and quarterly net profit of $53.04M. In comparison, last year the company earned revenue of $481M and had a net profit of $48.09M.

Unlike RBC Capital`s latest rating, based on the recent corporate insider activity of 73 insiders, corporate insider sentiment is negative on the stock. Most recently, in January 2016, William S. Kaiser, a a Director at RHT sold 18,972 shares for a total of $1,520,606.

Red Hat, Inc. provides open source software solutions. Its software offerings are designed to provide customers with high-performing, scalable, flexible, reliable, secure and stable technologies that meet the information technology infrastructure needs of enterprises. These offerings include Red Hat Enterprise Linux, Red Hat JBoss Middleware, Red Hat Enterprise Virtualization and Red Hat Storage Server. It has three geographic operating segments: the Americas (U.S., Canada and Latin America), EMEA (Europe, Middle East and Africa) and Asia Pacific. Red Hat was founded by Robert F. Young in March 1993 and is headquartered in Raleigh, NC.