Just the Facts on Red Hat, Inc. (RHT)

Red Hat, Inc. (RHT) is an interesting player in the Technology space, with a focus on Application Software. The stock has been active on the tape, currently trading at $120.10, down from yesterday’s close by -0.85%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Red Hat, Inc. (RHT) currently trades with a market capitalization of $21.43 Billion. That value represents a market adjusting for revenues that have been growing by 21.57 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of $780.61 Million over the past twelve months. Generally speaking, earnings are expected to fall in coming quarters. Analysts are forecasting earnings of $0.81 on a per share basis this quarter. Perhaps, that suggests something about why 0.88% of the outstanding share supply is held by institutional investors.

Technical Analysis

Sometimes, we can understand most about a stock by simply looking at how it has been trading. Looking at the stock’s movement on the chart, Red Hat, Inc. recorded a 52-week high of $130.93. It is now trading 10.83% off that level. The stock is trading $123.86 its 50-day moving average by 3.76%. The stock carved out a 52-week low down at $68.95.

In recent action, Red Hat, Inc. (RHT) has made a move of -5.25% over the past month, which has come on Strong relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 19.03, and it’s gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 2.39% with $176.05 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of RHT.

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