Technology company Red Hat (RHT) released its third quarter financial results on Thursday. Here’s what the results mean for mutual fund investors.
Inside the Results
Earnings
The company reported earnings of $48 million, or 26 cents per share. Adjusted income came in at 42 cents per share, above analysts’ estimate of 40 cents per share.
Revenue
Revenue rose 15% to $395 million. Analysts expected to see revenue of $451.39 million.
Good Headwinds in the Technology Space
The company has been benefiting from higher enterprise demand for its software used in data-centers. Its competitors, including Oracle (ORCL), have also been posting positive earnings. Although Red Hat has upside potential, it is still a very expensive stock from a valuation standpoint.
Mutual Funds to Watch
The mutual funds below may be a good option for investors seeking exposure to RHT. The three funds listed currently hold the largest stakes in the company.
| Symbol | Mutual Fund | Stake |
|---|---|---|
| FDGRX | Fidelity® Growth Company | 3.51% |
| RPMGX | T. Rowe Price Mid-Cap Growth | 2.80% |
| PRGFX | T. Rowe Price Growth Stock | 2.28% |
The Bottom Line
The funds listed above allow investors to gain exposure to a wide range of holdings. Investors interested in RHT may also be interested in Oracle (ORCL).
Shares of RHT are up 23% YTD.