Why Red Hat Inc (NYSE:RHT) is an Excellent Choice?

[Benzinga] Red Hat Inc (NYSE:RHT)(TREND ANALYSISrecently became the first $2 billion Open Source company. Now, the company has another ambitious goal: Hit $5 billion with its expansion into cloud services.

At its core, the cloud is all about Linux and Open Source, two things Red Hat knows extensively. Red Hat CEO Jim Whitehurst told TechCrunch, “This is a really great thing for us in that most of the innovation happening around the cloud is happening in Open Source… Our planning assumption is that with our existing portfolio we feel comfortable we can get to $5 billion.”

View more earnings on RHT

While there are just a handful of that have hit the $5 billion in revenue mark — such Microsoft, Oracle, SAP, Salesforce and VMware and Cisco — Red Hat’s ambitious goal is lofty but not out of reach.

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

Red Hat Inc (NYSE:RHT) stock is currently trading 4.8% below its 52-week-high, 34.91% 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 75.13 versus Technology sector average of 24.21. RHT stock price has underperformed the S&P 500 by 6.2%. The Applications Software company is currently valued at $14.59 billion, and its share price closed the last trading session at $80.39. The stock has a 50-day moving average of $75.25 and a 200-day moving average of $73.78.

Red Hat Inc (RHT) current short interest stands at 5.24 million shares. It has increased by 4% from the same period of last month. Around 5% of the company’s shares, which are float, are short sold. With a 10-days average volume of 1.39 million shares, the number of days required to cover the short positions stand at 3.8 days.

RHT is forecasted to report earnings per share of $0.5 and a revenue of $562.76 million for the 1st Quarter of the fiscal year 2016. Red Hat Inc (RHT) expects to post results on June 22. The Applications Software company announced last quarter earnings per share of $0.51 against a consensus Street estimate of $0.48, beating the average estimate by $0.03. The company posted a revenue of $543.5 million compared to an estimation of $537.2 million.

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

There are currently thirty-one analysts that cover Red Hat Inc stock. Of those thirty-one, twenty-four have a Buy rating, six 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 $88.24.

A recent analyst activity consisted of Pacific Crest upgrading their Sector Weight rating to Overweight on April 14. On the date of report, the stock closed at $74.45.

Bank of America reiterated their Neutral stance on March 23, and decreased their price target from $80 to $78. This corresponds to a 2.97% downside from the last closing price. On the date of report, the stock closed at $72.54.

Another research firm was Citigroup who reiterated their Buy stance on March 23. Citigroup increased their price target on Red Hat Inc from $79 to $90. This translates to a 11.95% upside from the last closing price. On the date of report, the stock closed at $72.54.

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.

Why Red Hat Inc (NYSE:RHT) is an Excellent Choice? was last modified: June 22nd, 2016 by Steven Finley