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Tux Machines (TM)-specific
Shares in Red Hat plunged 30 percent to a new 52-week low of $13.70 on Thursday morning following software giant Oracle’s announcement on Wednesday that it would move into the Linux software space.
By 11:30 a.m., more than 58 million shares had traded hands – nine times the daily average.
Red Hat (Nasdaq: RHAT) closed at $19.51 on Wednesday but the share price dropped dramatically in overnight trading to Thursday’s opening price of $15.80.
Shortly thereafter, panicked Red Hat shareholders sent the price down to $13.70.
By 11:30 a.m., however, buyers rallied the stock back to $14.34.
Analysts went on the warpath against Red Hat before the markets opened Thursday.
Credit Suisse dropped Red Hat to neutral from outperform and cut the value of Red Hat stock by more than 50 percent to $14.
Sun Trust Robinson Humphrey reduced Red Hat to neutral from buy.
JMP Securities downgraded Red Hat to market perform from market outperform.
Also Thursday, Soleil Securities slashed Red Hat’s stock price target to $11.50 from $19.