Red Hat Inc. (RHT): Today's Featured Technology Loser

Red Hat ( RHT) pushed the Technology sector lower today making it today's featured Technology loser. The sector as a whole closed the day down 0.4%. By the end of trading, Red Hat fell 30 cents (-0.6%) to $51.67 on light volume. Throughout the day, 1.5 million shares of Red Hat exchanged hands as compared to its average daily volume of 2.4 million shares. The stock ranged in price between $50.81-$52.53 after having opened the day at $52.30 as compared to the previous trading day's close of $51.97. Other company's within the Technology sector that declined today were: Lime Energy ( LIME), down 44.8%, DTS ( DTSI), down 25.1%, Alcatel-Lucent ( ALU), down 19%, and 21Vianet Group ( VNET), down 16.3%.

Red Hat, Inc. provides open source software solutions to enterprise customers worldwide. The company also offers enterprise-ready open source operating system platforms. Red Hat has a market cap of $10.13 billion and is part of the computer software & services industry. The company has a P/E ratio of 68.2, equal to the average computer software & services industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are up 27.1% year to date as of the close of trading on Monday. Currently there are 16 analysts that rate Red Hat a buy, one analyst rates it a sell, and five rate it a hold.

TheStreet Ratings rates Red Hat as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, compelling growth in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

On the positive front, CSR PLC ADR ( CSRE), up 31.1%, Digital Generation ( DGIT), up 22.8%, RIT Technologies ( RITT), up 19.9%, and TranSwitch Corporation ( TXCC), up 14.3%, were all gainers within the technology sector with Intuit ( INTU) being today's featured technology sector winner.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the technology sector could consider Technology Select Sector SPDR ( XLK) while those bearish on the technology sector could consider ProShares Ultra Short Technology ( REW).
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