Downgrade Hits Red Hat Stock, Which Slides 6%
Posted April 18, 2006
RALEIGH, N.C. — Shares in Linux software developer
(Nasdaq: RHAT) fell more than 6 percent Monday after the stock was downgraded by Goldman Sachs.
Analyst Rick Sherlund cut Red Hat to "underperform" from "in line".
Red Hat shares closed at $28.51 on Monday, off from Thursday's close of $30.55.
The stock fell a further 51 cents in after-hours trading.
The move came after Red Hat's announcement last week to acquire open source developer JBoss.
Sherlund said the JBoss deal put Red Hat on a "collision course" with Oracle and IBM, according to Investor's Business Daily.