Red Hat Inc (NYSE:RHT): Might be a Great Pick

[ZD Net] Red Hat Inc (NYSE:RHT)(TREND ANALYSIS) Microsoft and Red Hat inked a much-anticipated partnership in November 2015 One of the key elements was a promise to make Red Hat Enterprise Linux (RHEL) available on Microsoft’s Azure.

It’s been a series of steps, but today’s the culmination of that promise.

Customers were able to migrate their Red hat subscriptions to Azure as of November 12. At that time, Microsoft officials said they’d enable RHEL images for on-demand billing directly in Microsfot’s marketplace. Today, February 17, is the day that’s happening.

So what about those promised Red Hat JBoss middleware images? Microsoft isn’t commenting on when they’ll be available.

Stock Performance: Click here for a free comprehensive Trend Analysis Report

Red Hat Inc (NYSE:RHT) stock is currently trading 21.44% below its 52-week-high, 11.33% above its 52-week-low. The 1-year stock price history is in the range of $59.59 – $84.44. Red Hat Inc (RHT) has a price to earnings ratio of 64.41 versus Technology sector average of 24.21. RHT stock price has underperformed the S&P 500 by 14.5%. The Applications Software company is currently valued at $12.12 billion, and its share price closed the last trading session at $66.34. The stock has a 50-day moving average of $72.22 and a 200-day moving average of $75.74.

Red Hat Inc (RHT) current short interest stands at 6.12 million shares. It has increased by 3% from the same period of last month. Around 6% of the company’s shares, which are float, are short sold. With a 10-days average volume of 2.3 million shares, the number of days required to cover the short positions stand at 2.7 days.

RHT is forecasted to report earnings per share of $0.31 and a revenue of $536.61 million for the 4th Quarter of the fiscal year 2016. Red Hat Inc (RHT) expects to post results on March 23. The Applications Software company announced last quarter earnings per share of $0.47 against a consensus Street estimate of $0.46, beating the average estimate by $0.01. The company posted a revenue of $523.6 million compared to an estimation of $521.7 million.

Is this a Buying Opportunity? Click here for a free Trend Analysis Report

There are currently thirty-three analysts that cover Red Hat Inc stock. Of those thirty-three, twenty-five have a Buy rating, seven have a Hold rating and one has a Sell rating. On a consensus basis this yields to an Overweight rating. The consensus target price stands at $88.9.

A recent analyst activity consisted of Cowen & Company upgrading their Market Perform rating to Outperform on February 4. On the date of report, the stock closed at $68.62.

Bank of America downgraded their Buy rating to Neutral on January 26, and decreased their price target from $90 to $80. This corresponds to a 20.59% upside from the last closing price. On the date of report, the stock closed at $70.96.

Another research firm was BMO Capital who initiated their coverage on the stock with Outperform rating on January 8. On the date of report, the stock closed at $79.15.

Company snapshot

Red Hat, Inc. develops and provides open source software and services, including the Red Hat Linux operating system. The Company’s Web site offers information and news about open source software and provides an online community of open source software users and developers.

Red Hat Inc (NYSE:RHT): Might be a Great Pick was last modified: February 18th, 2016 by Pat Mayfield