Red Hat Rises On Unusually High Volume (RHT)

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

NEW YORK ( TheStreet) -- Red Hat (NYSE: RHT) is trading at unusually high volume Wednesday with 3.6 million shares changing hands. It is currently at two times its average daily volume and trading up $1.17 (+2.4%) at $50.56 as of 3:51 p.m. ET.

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Red Hat has a market cap of $9.71 billion and is part of the technology sector and computer software & services industry. Shares are down 6.7% year to date as of the close of trading on Tuesday.

Red Hat, Inc. provides open source software solutions to enterprise customers worldwide. The company also offers enterprise-ready open source operating system platforms. The company has a P/E ratio of 67.9, above the S&P 500 P/E ratio of 17.7.

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, good cash flow from operations, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income. You can view the full Red Hat Ratings Report.

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