What Next for Red Hat Inc (RHT) After Forming Bullish Wedge Up Chart Pattern?

June 20, 2017 - By Adrian Erickson

Investors sentiment decreased to 0.88 in Q4 2016. Its down 0.16, from 1.04 in 2016Q3. It dropped, as 60 investors sold Red Hat Inc shares while 164 reduced holdings. 50 funds opened positions while 148 raised stakes. 161.03 million shares or 0.70% more from 159.91 million shares in 2016Q3 were reported.
Bessemer Gp reported 3,687 shares. Meritage Mngmt owns 59,898 shares. Stephens Mgmt Ltd reported 174,212 shares or 0.34% of all its holdings. Envestnet Asset Management has 31,391 shares for 0.01% of their portfolio. Ct Mason has invested 0.55% in Red Hat Inc (NYSE:RHT). Manufacturers Life The holds 0.02% of its portfolio in Red Hat Inc (NYSE:RHT) for 170,129 shares. Tremblant Capital Grp, New York-based fund reported 651,407 shares. Moreover, Stifel Financial Corporation has 0.03% invested in Red Hat Inc (NYSE:RHT) for 94,902 shares. Clarivest Asset Management Ltd Limited Liability Company invested in 11 shares or 0% of the stock. Hsbc Public Limited Company owns 86,320 shares. Old Mutual Customised Solutions (Proprietary) owns 0.02% invested in Red Hat Inc (NYSE:RHT) for 1,300 shares. West Oak Capital Limited Liability Co has invested 0% in Red Hat Inc (NYSE:RHT). Carroll Assocs reported 200 shares. Rail holds 21,769 shares or 1.14% of its portfolio. Pictet Asset Mngmt reported 94,752 shares stake.

The stock of Red Hat Inc (RHT) formed an up wedge with $93.12 target or 3.00 % above today’s $90.41 share price. The 8 months wedge indicates low risk for the $16.53B company. If the $93.12 price target is reached, the company will be worth $495.90M more.
Rising wedges, especially for downward breakouts are tricky moments to trade. Investors must be aware that the break even failure rate for up or down breakouts is: 8% and 24%. The average rise is 28% and the decline is 14%. Wedges has high throwback and pullback rate: 73%, 63% and the percent of wedges meeting target is not more than 50%.

About 773,715 shares traded. Red Hat Inc (NYSE:RHT) has risen 18.97% since June 20, 2016 and is uptrending. It has outperformed by 2.27% the S&P500.

Analysts expect Red Hat Inc (NYSE:RHT) to report $0.34 EPS on June, 28.They anticipate $0.01 EPS change or 2.86 % from last quarter’s $0.35 EPS. RHT’s profit would be $62.16M giving it 66.48 P/E if the $0.34 EPS is correct. After having $0.42 EPS previously, Red Hat Inc’s analysts see -19.05 % EPS growth.

Red Hat Inc (NYSE:RHT) Ratings Coverage

Among 27 analysts covering Red Hat (NYSE:RHT), 20 have Buy rating, 0 Sell and 7 Hold. Therefore 74% are positive. Red Hat has $98 highest and $70 lowest target. $89.95’s average target is -0.51% below currents $90.41 stock price. Red Hat had 50 analyst reports since August 25, 2015 according to SRatingsIntel. On Thursday, December 22 the stock rating was downgraded by Stifel Nicolaus to “Hold”. On Tuesday, August 25 the stock rating was downgraded by Zacks to “Hold”. The stock has “Buy” rating by Mizuho on Monday, September 21. The stock of Red Hat Inc (NYSE:RHT) earned “Buy” rating by Stifel Nicolaus on Friday, December 18. Pacific Crest upgraded Red Hat Inc (NYSE:RHT) on Thursday, April 14 to “Overweight” rating. On Friday, October 9 the stock rating was initiated by Drexel Hamilton with “Buy”. Needham maintained Red Hat Inc (NYSE:RHT) rating on Friday, December 18. Needham has “Buy” rating and $98 target. UBS maintained the shares of RHT in report on Thursday, September 22 with “Buy” rating. BMO Capital Markets maintained Red Hat Inc (NYSE:RHT) on Thursday, June 23 with “Outperform” rating. The firm has “Outperform” rating by RBC Capital Markets given on Friday, December 18.

More notable recent Red Hat Inc (NYSE:RHT) news were published by: Prnewswire.com which released: “IBM Selected as Red Hat Global Strategic Partner of the Year” on June 02, 2017, also Reuters.com with their article: “BRIEF-Red Hat Inc to acquire Codenvy SA – SEC filing” published on May 25, 2017, Businesswire.com published: “Wins Red Hat Rising Star Partner of the Year Award” on June 15, 2017. More interesting news about Red Hat Inc (NYSE:RHT) were released by: Zacks.com and their article: “Will Red Hat (RHT) Pull Off a Surprise in Q1 Earnings?” published on June 16, 2017 as well as Seekingalpha.com‘s news article titled: “Red Hat To Acquire Codenvy For Cloud DevOps Tools” with publication date: May 25, 2017.

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