Traders Purchase Large Volume of Red Hat Call Options (RHT)

Red Hat Inc (NYSE:RHT) was the target of unusually large options trading activity on Monday. Stock traders acquired 38,469 call options on the stock. This represents an increase of 2,197% compared to the typical daily volume of 1,675 call options.

In other Red Hat news, CEO James M. Whitehurst sold 44,472 shares of the stock in a transaction that occurred on Tuesday, August 7th. The shares were sold at an average price of $142.56, for a total value of $6,339,928.32. Following the transaction, the chief executive officer now directly owns 445,557 shares in the company, valued at $63,518,605.92. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO James M. Whitehurst sold 2,513 shares of the stock in a transaction that occurred on Wednesday, October 17th. The stock was sold at an average price of $125.03, for a total transaction of $314,200.39. Following the completion of the transaction, the chief executive officer now owns 361,627 shares in the company, valued at $45,214,223.81. The disclosure for this sale can be found here. Insiders sold 48,103 shares of company stock worth $6,793,912 over the last quarter. Insiders own 0.58% of the company’s stock.

Hedge funds and other institutional investors have recently made changes to their positions in the company. Mutual of America Capital Management LLC grew its stake in Red Hat by 1.5% during the second quarter. Mutual of America Capital Management LLC now owns 27,735 shares of the open-source software company’s stock valued at $3,727,000 after acquiring an additional 418 shares in the last quarter. Meeder Asset Management Inc. grew its stake in Red Hat by 1.9% during the second quarter. Meeder Asset Management Inc. now owns 23,215 shares of the open-source software company’s stock valued at $3,119,000 after acquiring an additional 431 shares in the last quarter. Boltwood Capital Management grew its stake in Red Hat by 4.7% during the third quarter. Boltwood Capital Management now owns 9,755 shares of the open-source software company’s stock valued at $1,329,000 after acquiring an additional 437 shares in the last quarter. World Asset Management Inc grew its stake in Red Hat by 4.1% during the second quarter. World Asset Management Inc now owns 12,136 shares of the open-source software company’s stock valued at $1,631,000 after acquiring an additional 479 shares in the last quarter. Finally, State of Alaska Department of Revenue grew its stake in Red Hat by 1.6% during the third quarter. State of Alaska Department of Revenue now owns 29,893 shares of the open-source software company’s stock valued at $4,072,000 after acquiring an additional 483 shares in the last quarter. 96.06% of the stock is owned by hedge funds and other institutional investors.



Several research firms have weighed in on RHT. Nomura decreased their price target on shares of Red Hat from $182.00 to $175.00 and set a “buy” rating on the stock in a research report on Thursday, September 20th. Royal Bank of Canada increased their price target on shares of Red Hat to $190.00 in a research report on Monday. Robert W. Baird reiterated a “hold” rating on shares of Red Hat in a research report on Monday. Stifel Nicolaus downgraded shares of Red Hat from a “buy” rating to a “hold” rating and set a $190.00 price target on the stock. in a research report on Monday. Finally, Deutsche Bank downgraded shares of Red Hat from a “buy” rating to a “hold” rating and increased their price target for the stock from $170.00 to $190.00 in a research report on Monday. One analyst has rated the stock with a sell rating, thirteen have given a hold rating, sixteen have assigned a buy rating and one has assigned a strong buy rating to the stock. Red Hat currently has a consensus rating of “Buy” and a consensus target price of $162.03.

Shares of NYSE RHT opened at $169.63 on Tuesday. The company has a debt-to-equity ratio of 0.40, a current ratio of 1.23 and a quick ratio of 1.23. The firm has a market capitalization of $20.53 billion, a PE ratio of 73.75, a PEG ratio of 3.03 and a beta of 1.14. Red Hat has a 1 year low of $115.31 and a 1 year high of $177.70.

Red Hat (NYSE:RHT) last announced its quarterly earnings data on Wednesday, September 19th. The open-source software company reported $0.85 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.82 by $0.03. The firm had revenue of $822.75 million during the quarter, compared to analysts’ expectations of $828.12 million. Red Hat had a net margin of 9.15% and a return on equity of 31.80%. The company’s revenue for the quarter was up 13.7% compared to the same quarter last year. During the same period in the prior year, the company posted $0.77 earnings per share. As a group, research analysts predict that Red Hat will post 2.57 earnings per share for the current fiscal year.

Red Hat Company Profile

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. It offers infrastructure-related solutions, such as Red Hat Enterprise Linux, an operating system platform that runs on hardware for use in hybrid cloud environments; Red Hat Satellite, a system management offering that helps to deploy, scale, and manage in hybrid cloud environments; and Red Hat Enterprise Virtualization, a software solution that allows customers to utilize and manage a common hardware infrastructure to run multiple operating systems and applications.

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