Analyst Ratings for Red Hat Inc. (RHT)

Updated: 2017-07-29

An average rating of Overweight has been given to Red Hat Inc. (NYSE:RHT) by analysts covering the stock. RHT had previously received a consensus rating of Overweight a month ago.

Of the 31 analysts covering the stock, 19 gave it a buy rating, 1 issued an overweight rating, 10 gave a hold rating, 0 issued an underweight rating, and 1 issued a sell rating. Today, there are 1 more analysts optimistic about the company future as compared with 90 days ago. Meanwhile, the number of analysts pessimistic about the company has increased by 0.

A number of analysts gave price targets for RHT. The highest price target was 127, implying potential capital gains of 28.92 percent. The minimum price target given was 89, which equates to a potential downside of -9.65 percent. One must be careful with overanalyzing price targets and ratings due to possible conflicts of interest among the analysts releasing them.

Over the past month, analysts have revised their estimates for this quarter's earnings, with a net average change of 0 percent. That number becomes 3.76 percent if we expand the time horizon to include the past 3 months instead of just one. On the other hand, earnings estimates for the fiscal year have been revised upwards by 0 percent, as compared to a month ago. Expanding the time horizon to 3 months, the average change in fiscal year estimates becomes 2.6 percent.

Investors like to see analysts making revisions in the same direction, as that raises confidence in the revisions. 0 analysts have revised their quarterly estimates upwards in the past 30 days, while 0 analysts made negative revisions. Over the same time period, 0 analysts revised their FY earnings estimates upwards, compared to 0 analysts that revised their FY estimates downwards.

Analysts estimate earnings of RHT to grow at a rate of 29.19 percent. The PEG ratio of a stock is another value frequently studied by investors. Smaller PEG ratios are desirable, as that can indicate whether the high price level of a stock is warranted by high growth. Wall Street investors typically prefer a PEG ratio to be smaller than 1, though it could be better to see where the ratio stands relative to peers in the industry. RHT has a PEG ratio of 2.33.

RHT has traded between a high of 101.73 and a low of 68.54 over the past year. Today's price is 43.73 percent above the 52-week low, and 3.17 percent below the high. RHT has a price/earnings ratio of 67.94. Investors typically compare the P/E ratio to a company's peers in the industry. The RHT value stock report compares RHT to some of its peers using value stock charts. The stock has a market capitalization of $17.55 billion. RHT is estimated to release their earnings results for the quarter on 0000-00-00, days from today.