RHT - Red Hat, Inc.

NYSE - NYSE Delayed Price. Currency in USD
-0.34 (-0.18%)
At close: 4:00PM EDT
Stock chart is not supported by your current browser
Previous Close185.54
Bid185.49 x 1400
Ask185.45 x 800
Day's Range185.20 - 185.80
52 Week Range115.31 - 186.36
Avg. Volume1,328,179
Market Cap32.92B
Beta (3Y Monthly)-0.27
PE Ratio (TTM)79.48
EPS (TTM)2.33
Earnings DateJun 20, 2019
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateN/A
1y Target Est186.86
Trade prices are not sourced from all markets
  • Markit2 days ago

    See what the IHS Markit Score report has to say about Red Hat Inc.

    Red Hat Inc NYSE:RHTView full report here! Summary * Bearish sentiment is low Bearish sentimentShort interest | PositiveShort interest is low for RHT with fewer than 5% of shares on loan. The last change in the short interest score occurred more than 1 month ago and implies that there has been little change in sentiment among investors who seek to profit from falling equity prices. Money flowETF/Index ownership | NeutralETF activity is neutral. ETFs that hold RHT had net inflows of $5.17 billion over the last one-month. While these are not among the highest inflows of the last year, the rate of inflow is increasing. Economic sentimentPMI by IHS Markit | NeutralAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Technology sector is rising. The rate of growth is weak relative to the trend shown over the past year, however. Credit worthinessCredit default swapCDS data is not available for this security.Please send all inquiries related to the report to score@ihsmarkit.com.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.

  • Red Hat (RHT) Earnings Expected to Grow: Should You Buy?
    Zacks4 days ago

    Red Hat (RHT) Earnings Expected to Grow: Should You Buy?

    Red Hat (RHT) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

  • IBM Lays Off 1,700 Employees as Part of Restructuring Plan
    Zacks7 days ago

    IBM Lays Off 1,700 Employees as Part of Restructuring Plan

    IBM's focus on expanding product offerings for customers bodes well. Also, the company's improving position in the hosted cloud, security and analytics are key positives.

  • IBM to Cut 1,700 Jobs as Transformation Continues
    InvestorPlace10 days ago

    IBM to Cut 1,700 Jobs as Transformation Continues

    Online message board The Layoff revealed June 6 that IBM (NYSE:IBM) was cutting approximately 1,700 jobs from its global workforce of 340,000. Later on the same day, the company confirmed the cuts.Source: Shutterstock "We are continuing to reposition our team to align with our focus on the high-value segments of the IT market, and we also continue to hire aggressively in critical new areas that deliver value for our clients and IBM," stated a company spokesperson in an email to CNBC. If you think this round of job cuts will be good for IBM stock, I'd forget that idea. The company's stock is unlikely to go much higher in the near-term until investors get a better sense if Red Hat (NYSE:RHT) is going to be the savior CEO Ginni Rometty says it will be. InvestorPlace - Stock Market News, Stock Advice & Trading TipsHere's why. IBM's Got 7,700 Job OpeningsIBM has 7,700 vacant jobs listed on their site, but don't expect them to be filled soon. IBM's $34 billion acquisition of Red Hat is set to close in the second half of 2019. Red Hat has 13,360 employees. It's unlikely that IBM is going to fill many of the vacant positions until it completes the acquisition using some of the Red Hat employees to fill outstanding positions. * 7 Stocks to Buy That Don't Care About Tariffs In addition, the statement from the company from above suggests that as it continues to integrate Red Hat into the fold and develops a battle plan for capturing some of the high-value segments of the IT market (with Red Hat's help), it will become readily apparent how many of the 7.700 jobs it actually needs to fill. The rest will be permanently closed. IBM's been cutting jobs since 2016, and yet revenues and profits have remained virtually the same in the three years since. You can only cut jobs and expenses for so long. Eventually, you must grow your way out of trouble. Or, if you're IBM, buy your way out. At least that's the plan. Is Red Hat the Savior for IBM Stock?The answer depends on who you talk to. Evercore ISI analysts Amit Daryanani and Irvin Liu recently initiated coverage of IBM stock and had this to say about the company:"While IBM stock will likely be range bound near-term, as investors remain on the sidelines until they have a better understanding of IBM's financial profile post close of the Red Hat acquisition, our positive stance is based on our favorable view of the RHT deal which has the potential to be transformational as it significantly broadens IBM's capabilities and customer reach," the two analysts wrote in a June note to clients. Rometty believes it will be a home run. "This is about resetting the cloud landscape and we will be the undisputed, number one leader in hybrid cloud. We've been really building our business for this moment," Rometty said in October after announcing the Red Hat acquisition. "To lead in the second chapter of cloud, it's all going to be about hybrid cloud. Hybrid cloud is an emerging $1 trillion market."While I agree with Rometty that the hybrid cloud is going to be huge, I have a hard time believing that she's spent the past seven years dreaming about the possibilities. If she had, Red Hat would have become a part of IBM a lot sooner. This acquisition, as my InvestorPlace colleague Ian Bezek recently said, himself a shareholder, a must win. "The Red Hat deal absolutely has to pay off. Otherwise, IBM stock will be an even worse performer going forward. I personally still own IBM stock, but I have it on a leash. The stock would be a sell if IBM management bungles the Red Hat purchase. For IBM, it's do or die time," Bezek wrote June 4.One analyst believes IBM's purchase of Red Hat was an act of desperation."It's a desperate deal by a company that missed the boat for the last five years," BTIG managing director Joel Fishbein said about the deal in late October. "I'm not surprised that they bought Red Hat, I'm surprised that it took them so long. They've been behind the cloud eight ball. "I agree. In November, I argued that IBM stock would never revisit $200 with Rometty as CEO. As the deal gets nearer, I don't believe anything's changed for me to think she's the right person for the job. She's the one that put the company in such a desperate position. The Bottom Line on IBM StockThe fact that IBM stock is up 19% year to date through June 6 is impressive in itself because the company's stumbled severely in recent years. That is up so much says more about the state of the markets than IBM.No amount of job cuts is going to move IBM stock higher at this point. The only thing that will move it closer to $200 is proof positive that buying IBM wasn't a colossal waste of money. I'm not convinced, and neither are a lot of other investors. * 7 S&P 500 Dividend Stocks to Buy at Least Yielding 3% As a result, IBM could be dead money for the next 6-12 months. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 S&P 500 Dividend Stocks to Buy at Least Yielding 3% * 7 Stocks to Buy That Don't Care About Tariffs * 5 Healthcare Stocks to Pick Up From the Wreckage Compare Brokers The post IBM to Cut 1,700 Jobs as Transformation Continues appeared first on InvestorPlace.

  • IBM confirms layoffs as it preps to close on Red Hat buy
    American City Business Journals10 days ago

    IBM confirms layoffs as it preps to close on Red Hat buy

    As it prepares to close on its $34 billion buy of Raleigh-based Red Hat, IBM is reportedly again “reposition[ing]” its team – a move that translates to an unknown number of layoffs.

  • IBM exec updates investors on Red Hat deal
    American City Business Journals12 days ago

    IBM exec updates investors on Red Hat deal

    IBM’s plan for Red Hat? Expanding it “probably much more rapidly than they necessarily could have on their own.”

  • Hedge Funds Have Never Been This Bullish On Red Hat, Inc. (RHT)
    Insider Monkey12 days ago

    Hedge Funds Have Never Been This Bullish On Red Hat, Inc. (RHT)

    A whopping number of 13F filings filed with U.S. Securities and Exchange Commission has been processed by Insider Monkey so that individual investors can look at the overall hedge fund sentiment towards the stocks included in their watchlists. These freshly-submitted public filings disclose money managers’ equity positions as of the end of the three-month period […]

  • Why this Triangle exec just scored $4M because of a merger
    American City Business Journals12 days ago

    Why this Triangle exec just scored $4M because of a merger

    Mergers and acquisitions are often lucrative for a few executives involved in the deal. As IBM works to close its blockbuster buy of Raleigh-based open source software firm Red Hat, its soon-to-be subsidiary is trying to entice its top executives to stay. In a securities filing disclosed late Tuesday, Red Hat unveiled a just-signed agreement with its CFO, Eric Shander, one that would mean a “cash retention award” if he decides to stay with the company after the $34 billion IBM deal closes.

  • Will IBM’s Huge Bet on Red Hat Pay Off?
    InvestorPlace13 days ago

    Will IBM’s Huge Bet on Red Hat Pay Off?

    After years of slumping revenues, disappointing earnings, and an underwhelming stock performance, IBM (NYSE:IBM) has made a huge move. It is acquiring cloud player Red Hat (NYSE:RHT) for more than $30 billion. This deal will make or break IBM's future. Management sees a trillion dollar market opportunity in the hybrid cloud, with Red Hat being a key piece of IBM's strategy to conquer that market. Red Hat also offers a way to tag along with Microsoft's (NASDAQ:MSFT) success, as Linux use has been surging within Microsoft's Azure platform.Source: Shutterstock Needless to say, if IBM made a sound purchase with Red Hat, it will revive the company's fortunes. But, having paid 10x sales for Red Hat, expectations are high. In recent weeks, IBM has raised debt funding for the purchase and gotten regulatory approval from various government bodies. It's increasingly likely that the Red Hat purchase will close soon, and with it, IBM will need to start getting results to justify the steep price tag on its purchase. The Red Hat Deal Adds Tons of DebtPrior to the Red Hat deal, IBM retained a fairly strong balance sheet. Yes, critics could point to the company's $50 billion debt load as a clear negative. However, rating agency S&P's IBM credit rating of A+ reflected the company's strong financial position. Why didn't the $50 billion of debt make IBM a riskier proposition?InvestorPlace - Stock Market News, Stock Advice & Trading TipsFor one thing, IBM has an extensive credit operation of its own called Global Financing. This division extends loans and other credits to its customers, facilitating more transactions. As of Q1, Global Financing made up nearly $30 billion of the overall debt load, leaving just $20 billion after subtracting that. In theory, many of IBM's clients could go bust if another steep recession hit or the tech industry faced a wipe-out. Still, most of that $30 billion should be good money, making IBM's balance sheet much stronger than it first looks. * 10 Heavily Shorted Stocks to Sell -- Because the Bears Are Right Still, it is weakening, especially with the Red Hat purchase. In 2017, S&P cut its IBM rating from AA- to A+ on shortfalls in revenues compared to expectations. Last fall, S&P cut its IBM rating again, now to A and has left it on negative outlook for yet another potential downgrade. Bloomberg said that the credit rating could get cut all the way to BBB -- near the edge of investment grade -- depending on how the Red Hat deal works out.IBM announced earlier this month that it is issuing $20 billion in debt to fund the Red Hat purchase. This doubles the company's effective debt load once you back out Global Finance. IBM still has some wiggle room on the balance sheet. But it has used up a lot of its borrowing capacity already. No More Stock BuybackThat will lead to one immediate potentially negative impact for IBM stock: The stock buyback is halted. IBM has had a monster stock buyback in recent years cutting the share count by a third. In fact, the company has relied on that share buyback to paper over its shortcomings elsewhere.The company has seen revenues drop 20% in recent years. Even with a rise in margins, it has not been able to offset this in terms of net income. But when you shrink the divisor, the number of shares outstanding, you can still show earnings growth even as the business shrinks. IBM will lose that cushion for at least 2020 and 2021, as it is now planning on spending its free cash flow on the dividend and paying down the Red Hat debt rather than buying its own stock.The one potential silver lining here is that IBM won't destroy any further shareholder value buying overpriced IBM stock. IBM's share price is now below where it has traded for most of this decade. That means IBM paid billions more repurchasing its stock than it is now worth on the open market. Given the business' struggles, shareholders may be happy that IBM spent money on growth again, rather than buying its stagnant stock. The Red Hat Deal Has to WorkBut whether shareholders end up happy depends almost entirely on execution from this Red Hat deal. This is a huge move for IBM. They are paying $33 billion for Red Hat and IBM's current market cap is under $120 billion. That means that IBM is spending more than a quarter of its market cap on this purchase. Should it fail to meet expectations, not only would it cause a large write-off, it'd also irredeemably tarnish management's reputation. This deal is so big that it has to work for IBM to retain its credibility as a leader in tech.Will it work? There are reasons for skepticism, as there are with most large tech mergers. It's often hard to retain employees, particularly since people view Red Hat as far more creative than IBM at this point. Plus, Red Hat's business model was quite different from IBM's. Still, the company clearly needed to do something. Its main division, Global Technology Services, saw revenues fall nearly 10% this quarter versus the previous year. Meanwhile, even more worryingly, Cloud & Cognitive Software revenues fell by 2%. Cloud is still booming for various other tech companies and is supposed to be the future for IBM as well. They absolutely must get cloud back on track if IBM stock is going to work out for its shareholders. Hence the Red Hat deal. * 7 Small-Cap ETFs to Buy Now IBM Stock VerdictA lot of people, myself included, enjoy receiving the nearly 5% dividend yield from IBM stock. It's a primary reason to own the stock in fact. IBM has also managed huge rates of dividend increases over the past twenty years. However, Red Hat muddies the picture here as well. The company has shrunk its share count by 25% since just 2012. Theoretically, if a company had 100 shares then, it has only 75 now. If you had a fixed pot of $225 to pay annual dividends, it could pay $2.25 per share in dividends back then. Now it can pay $3 per share simply because the pie is getting split into far fewer slices.This virtuous cycle stops now that the share buybacks are halted. For IBM to continue its dividend growth, it now needs more net income to drive that lever. As we say this year, IBM gave us its smallest dividend increase in ages. For IBM to get back on track, both in terms of earnings and dividend hikes, the Red Hat deal absolutely has to pay off. Otherwise, IBM stock will be an even worse performer going forward. I personally still own IBM stock, but I have it on a leash. The stock would be a sell if IBM management bungles the Red Hat purchase. For IBM, it's do or die time.At the time of this writing, Ian Bezek owned IBM stock. You can reach him on Twitter at @irbezek. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Sell Impacted by the Mexican Tariffs * 6 Big Dividend Stocks to Buy as Yields Plunge * The 10 Biggest Announcements From Apple WWDC 2019 Compare Brokers The post Will IBM's Huge Bet on Red Hat Pay Off? appeared first on InvestorPlace.

  • Business Wire14 days ago

    Red Hat to Release Results for First Quarter Fiscal Year 2020

    Red Hat, Inc. , the world's leading provider of open source solutions, will release results of its first quarter in fiscal year 2020 on Thursday, June 20, 2019, after the market close.

  • Here’s What Awaits IBM in the EU Review of Its Red Hat Deal
    Market Realist14 days ago

    Here’s What Awaits IBM in the EU Review of Its Red Hat Deal

    IBM Wants to Transform Senior Homes with Vehicle Technology(Continued from Prior Part)US companies meet different fates at the hands of EU regulatorsEU antitrust regulators have opened a review of IBM’s (IBM) proposed acquisition of Red Hat

  • Better Buy: Berkshire Hathaway vs. IBM
    Motley Fool18 days ago

    Better Buy: Berkshire Hathaway vs. IBM

    Can the mighty IT company score a win against Warren Buffett?

  • StarHub Taps Red Hat OpenStack Training for Talent Upskilling and Innovation
    PR Newswire21 days ago

    StarHub Taps Red Hat OpenStack Training for Talent Upskilling and Innovation

    SINGAPORE, May 27, 2019 /PRNewswire/ -- Red Hat, Inc. (RHT), the world's leading provider of open-source solutions, today announced that StarHub, a leading homegrown Singapore company that delivers world-class communications, entertainment and digital solutions, has selected the company to help develop its workforce under the Red Hat Training and Certification programme amid increased adoption of open source innovation. As part of the programme, Red Hat provides specialized training for StarHub's Integrated Network Engineering team on Red Hat OpenStack Platform, which is deployed across the company's infrastructure. The Integrated Network Engineering team, led by StarHub's chief technology officer Mr Chong Siew Loong, designs and maintains robust, efficient, and scalable fixed and wireless networks for the delivery of quality services, content and solutions to all consumers and enterprises.

  • Is IBM Close to Completing Its Red Hat Acquisition?
    Market Realist26 days ago

    Is IBM Close to Completing Its Red Hat Acquisition?

    Tech Sector: Analyzing the Latest Acquisition Deals(Continued from Prior Part)IBM-Red Hat deal awaits regulatory approvalIBM (IBM) is waiting for approval from European Union (EZU) antitrust regulators for its $34 billion potential acquisition of

  • EU regulators to decide on IBM's $34 billion Red Hat bid by June 27
    Reuters27 days ago

    EU regulators to decide on IBM's $34 billion Red Hat bid by June 27

    BRUSSELS (Reuters) - EU antitrust regulators will decide by June 27 whether to clear U.S. tech giant International Business Machines Corp's $34 billion (£26.8 billion) bid for software company Red Hat. ...

  • Reuters27 days ago

    EU regulators to decide on IBM's $34 bln Red Hat bid by June 27

    EU antitrust regulators will decide by June 27 whether to clear U.S. tech giant International Business Machines Corp's $34 billion bid for software company Red Hat. The deal, IBM's biggest, will help the ...

  • GuruFocus.com28 days ago

    Prem Watsa Buys Buffett's Red Hat, Boosts Micron in 1st Quarter

    Investor buys 5 positions for portfolio

  • Top 5 Information Technology Stocks of 2018 by Performance
    Investopedia28 days ago

    Top 5 Information Technology Stocks of 2018 by Performance

    These top information technology (IT) stocks have outperformed the rest amid a period of heightened volatility in the tech sector for 2018.

  • Berkshire Hathaway Reveals $904 Million Amazon Stake
    Investopedialast month

    Berkshire Hathaway Reveals $904 Million Amazon Stake

    Warren Buffett's Berkshire also increased its equity positions in JPMorgan and Red Hat, according to a recent filing.

  • Re-imagining the Cloud Will Be the Secret Sauce for IBM Stock
    InvestorPlacelast month

    Re-imagining the Cloud Will Be the Secret Sauce for IBM Stock

    On paper, International Business Machines (NYSE:IBM) has the right components to provide conservative investors and retirees a solid play. Although IBM stock is a boring name relative to its sector's sexy upstarts, it's also a proven commodity. As things get shaky in this geopolitically tense environment, a little stability can go a long way.Source: Shutterstock Unfortunately, the IBM stock price has been anything but stable over recent years. Since mid-2014, shares have gyrated between hope and despair. Broadly speaking, though, "Big Blue" has disappointed stakeholders.Even more emblematic is this year's trading, with the equity taking an early lead before going flat. Now, a question exists whether it can reasonably sustain its newfound momentum. Despite some obvious headwinds, I believe investors' patience will ultimately be well-served.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Retirement Stocks That Won't Wilt in a Bear Market A Closer Look at IBMInvestment-research firm MoffettNathanson gave some food for thought, although the bulls probably wish it hadn't. According to the company's latest report, the legacy tech giant will experience "little to no growth" in earnings over the next three years. Moreover, an activist investor could demand changes, causing an unpredictable ripple in the IBM stock price.It's understandable why MoffettNathanson or any analyst would have a pessimistic view. Right now, IBM is on the verge of buying out open-source software developer Red Hat (NYSE:RHT). When it was first announced, the news made waves as it would allow Big Blue to compete in the cloud.However, bearish analysts anticipate the markets penalizing the IBM stock price for a credibility problem. Despite substantial efforts, IBM lags behind cloud leaders Amazon (NASDAQ:AMZN) and Microsoft (NASDAQ:MSFT). Also, other competitors like Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) and Alibaba (NYSE:BABA) are gaining ground. IBM Stock Isn't AwfulFrom purely topical numbers such as cloud revenues, it's easy to dismiss the IBM stock price as overvalued. After all, this is a legacy company older than most InvestorPlace readers.That said, it's tough to make an apples-to-apples comparison among various cloud players. Primarily, this is because many companies include segments that lever critical nuances to the analysis. For instance, Microsoft's commercial cloud revenue includes Office 365, which can distort the bigger picture.Why? Because Office 365 is both a retail and a commercial platform. Right now, people starving students up to Fortune 500 companies use Office 365. Due to this vast coverage, it's hard to pinpoint what customers a cloud company is attracting.Platforms like AWS and Azure appeal to the masses, which means higher volume and lower margins. Companies like IBM and Oracle (NYSE:ORCL) are the opposite. More or less, they seek industry titans, resulting in lower volume but higher margins.The idea behind the Red Hat buyout is to catalyze Big Blue's synergies which are attractive to the alpha dogs. As IBM CEO Ginni Rometty mentioned, she's not interested in Red Hat simply to consume its resources. Instead, Rometty envisions an accretive venture, one that will "unlock the full value of the cloud" for large-scale businesses.Even without the Red Hat deal, the legacy tech giant offered arguably superior synergies for its cloud clients. This isn't just about data storage, of which the company levers several massive data centers. Instead, IBM offers holistic coverage, ranging from administrative functions up to cognitive machine learning.And believe me, the machine learning part is no gimmick. Big Blue has already displaced white-collar workers with artificial intelligence. In terms of big business, IBM stock is a very credible investment. The Competition WorryingAnother reason why investors shouldn't panic over nearer-term noise is the competition. Yes, Amazon and Microsoft are the current sales leaders, but they can't afford to rest on their laurels.As I mentioned above, these two tend to attract smaller clients. Due to this dynamic, they must constantly fight against the inevitable churn rate.An important point for those thinking about buying IBM is that rival cloud platforms aren't as tip-top as typically advertised. Through forums like Reddit, I've seen many complaints about AWS' cumbersome nature. Apparently, the support service for AWS is also lacking.I'm not surprised about Amazon's cloud problems. Don't get me wrong: I think AMZN is a great long-term investment. But it's also a disruptive one that is stretched wide. In trying to be the jack-of-all-trades, it risks not mastering the essentials.IBM, though, is singularly focused on business technologies: it's literally written into their name. With the Red Hat acquisition and synergies, the company could turn a corner, finally. Plus, with the IBM stock price relatively cheap against prior highs, it makes for a solid contrarian buy.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Cloud Stocks to Buy on Overcast Days * 6 Stable Stocks Worth Buying for Protection * 5 Active Vanguard Funds That You Have to Own Compare Brokers The post Re-imagining the Cloud Will Be the Secret Sauce for IBM Stock appeared first on InvestorPlace.

  • 3 Stocks Warren Buffett Is Snapping Up Now
    TipRankslast month

    3 Stocks Warren Buffett Is Snapping Up Now

    Are you ready? Hedge funds have now revealed their transactions for the first quarter of 2019\. Thanks to 13F forms filed with the SEC we now know which stocks hedge funds are buying and selling. Such transactions provide a valuable glimpse into the latest ‘Smart Money’ flows. One fund manager in particular stands out from the crowd. Billionaire Warren Buffett– otherwise known as the Oracle of Omaha- is the chairman and CEO of the massive Berkshire Hathaway fund. The fund’s last reported 13F filing for Q1 2019 includes $199,483,708,000 in managed 13F securities.Berkshire’s trades always generate intense speculation, and this quarter is no different. Bear in mind the fund only reports transactions 45 days after the end of the last quarter, so it is possible that shares have been bought or sold since the last filing date.Now without further ado, let’s turn to TipRanks to discover 3 stocks Warren Buffett is buying now: Amazon (AMZN)Welcome to this quarter's big winner. Buffett has at last initiated a position in Amazon with 483,300 shares worth about $860.6 million. This means Amazon still has a way to go before it becomes one of the fund’s major players. Although Buffett disclosed the new investment earlier this month, only now can we see the size of this stake. But be aware: Buffett himself was not responsible for this particular investing decision. “One of the fellows in the office that manage money ... bought some Amazon, so it will show up in the 13F,” Buffett told CNBC on May 2. “Yeah, I’ve been a fan, and I’ve been an idiot for not buying” Amazon shares, Buffett said. “But I want you to know it’s no personality changes taking place.”Indeed, the hedge fund guru has long been vocal about his appreciation for both Amazon and CEO Jeff Bezos- now the world’s richest person. “I made the wrong decisions on Google and Amazon,” Buffett told shareholders back at the annual Berkshire Hathaway in 2018. “We’ve looked at it. I made the mistake in not being able to come to a conclusion where I really felt that at the present prices that the prospects were far better than the prices indicated.”> Of Amazon CEO Jeff Bezos, the 88-year-old billionaire revealed: “I had a very very very high opinion of Jeff’s ability when I first him, and I underestimated him… I’ve watched Amazon from the start. I think what Jeff Bezos has done is something close to a miracle … The problem is when I think something will be a miracle, I tend not to bet on it. It would have been far better obviously if I had some insights into certain businesses.” Amazon: Word on the StreetIn fact, Amazon is one of the Street’s most popular stocks right now. We can see from TipRanks that 34 out of 34 analysts rate the stock a ‘Buy’. These analysts still see AMZN as a compelling investment opportunity with 19% upside potential. Plus Amazon has a Smart Score of 10/10- thanks to its support from multiple datapoints including positive technicals, fundamentals, and news sentiment. Five-star Monness analyst Brian White is even more bullish than consensus. He has just reiterated his price target of $2,300 (23% upside) following strong 1Q:19 results with significant profit upside. “Amazon has forged ahead with new initiatives and innovations… We believe the company’s growth path is very attractive across the e-commerce segment, AWS, digital media, advertising, Alexa and more” explains White. View AMZN Price Target & Analyst Ratings Detail JP Morgan (JPM)Buffett ramped up the fund’s holding in JP Morgan by 18% to 59.5 million shares worth just over $6 billion. Given that this position was only initiated in 3Q18, it has quickly become one of the fund’s larger holdings. Like with Amazon, Buffett is clearly a believer in JPM’s management team. Buffett has said he reads CEO Jamie Dimon’s annual shareholder letter for insights into the banking industry. And he also partnered with both Dimon and Bezos last year on a not-for-profit health venture for employees called Haven. Meanwhile one of Buffett’s senior investing lieutenants, Todd Combs, sits on JP Morgan’s board of directors. Analysts are cautiously optimistic on JP Morgan’s prospects. The stock holds a Moderate Buy consensus, while the average analyst price target stands at $122 (11% upside potential). “We view JPM as a high-quality core holding in the group. At ~10x our 2020 EPS estimate and ~1.9x TBV, we believe the shares are reasonably priced, but not quite the bargain they were even in the fairly recent past. At this juncture, we think BAC and C are more timely, but JPM is a well-managed company that should create value over time” explains top-rated Oppenheimer analyst Chris Kotowski. He currently has a Hold rating on the stock. View JPM Price Target & Analyst Ratings DetailInterestingly, however, JPM still scores a 'perfect' Smart Score of 10. That's thanks to a bullish outlook from hedge fund managers, corporate insiders, and even financial bloggers. RedHat (RHT)Software stock RedHat is a leading provider of enterprise open source solutions, including high-performing Linux, cloud, container, and Kubernetes technologies. Buffett significantly increased the fund’s RHT holding in Q1 by 22% to 5.1 million shares worth $9.34 million. Monnness analyst Brian White has just attended the RedHat summit. At the event IBM CEO Ginni Rometty reaffirmed that Red Hat will remain an independent company after IBM completes its $34 billion acquisition. The deal has just received approval from the US Department of Justice, and is now waiting for EU approval. “Growing revenue by 17% per annum over the past five years and showing new engines of growth in the ADOET business, we believe investors will continue to pay a premium for the company’s subscription model and the strong secular trends supporting the open source software movement” cheers White. He reiterated his buy rating on RHT with a $190 price target on May 9 (this is also the price paid by IBM per share- a 63% premium on RHT shares back in October when the deal was announced). Note that RedHat boasts a Smart Score of 9, placing it firmly in the Outperform category. See what other financial experts say about RedHat here. And it’s goodbye to: Verizon (VZ)In the quarter the fund exited Verizon completely – the only stock to be sold off. Verizon is only guiding for a low single-digit percentage growth in 2019 and recently reported lackluster earnings results. Meanwhile the fund slashed holdings of the following stocks: 1. Halving its position in multinational energy company Phillips 66 (PSX) to just 5.5 million shares valued at $528 million. 2. Reducing the Charter Communications (CHTR) holding by 18%. The remaining holding is now worth approx. $1.9 billion. 3. Trimming low-cost US airline Southwest Airlines (LUV) by 2% to 53.6 million shares worth $2.8 billion. 4. Selling almost 17 million shares in Wells Fargo (WFC). However, WFC remains the fund’s third biggest holding with a value of $19.8 billion. Year-to-date, WFC has stayed flat- and over the last three years the stock has lost 6%. Nonetheless Buffett only paid an estimated average price for the shares of $30/ stock, and the financial giant is now trading considerably higher at $46/share. Find fresh investing inspiration Here we have looked at Warren Buffett's latest stock picks. But TipRanks covers more than just hedge funds. It tracks and ranks thousands of insiders, bloggers and analysts. The Analysts’ Top Stocks tool reveals which ‘Strong Buy’ stocks analysts have a very bullish consensus on right now. Go to the Analysts’ Top Stocks Tool now.

  • Reuterslast month

    Buffett's Berkshire unveils $861 million Amazon stake

    The size of the investment was disclosed in a regulatory filing detailing Berkshire's U.S.-listed stocks as of March 31. Wednesday's filing includes investments by Buffett and his portfolio managers Todd Combs and Ted Weschler, but does not say who bought and sold what.

  • Microsoft, Amazon, and More: Why These Stocks Are Trending
    Insider Monkeylast month

    Microsoft, Amazon, and More: Why These Stocks Are Trending

    It's getting close to 13F filing season and several stocks such as Amazon and JPMorgan are in the spotlight because of it. Furthermore, Microsoft is also in the spotlight due to an unrelated issue concerning some of its software. Without further ado, let's analyze why traders are watching each stock and how the smart money […]

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