Today Red Hat (RHT) Hits New Lifetime High

Trade-Ideas LLC identified Red Hat ( RHT) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Red Hat as such a stock due to the following factors:

  • RHT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $114.3 million.
  • RHT has traded 51,099 shares today.
  • RHT is trading at a new lifetime high.

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More details on RHT:

Red Hat, Inc. provides open source software solutions to enterprise customers worldwide. It develops and offers operating system, virtualization, middleware, storage, and cloud technologies. RHT has a PE ratio of 76. Currently there are 14 analysts that rate Red Hat a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Red Hat has been 1.4 million shares per day over the past 30 days. Red Hat has a market cap of $14.5 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.91 and a short float of 3.3% with 3.60 days to cover. Shares are up 15.9% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Red Hat as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, notable return on equity and good cash flow from operations. We feel its 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.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 18.8%. Since the same quarter one year prior, revenues rose by 13.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • RED HAT INC has improved earnings per share by 12.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, RED HAT INC increased its bottom line by earning $0.97 versus $0.93 in the prior year. This year, the market expects an improvement in earnings ($1.86 versus $0.97).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Software industry. The net income increased by 9.8% when compared to the same quarter one year prior, going from $46.82 million to $51.40 million.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Software industry and the overall market, RED HAT INC's return on equity exceeds that of both the industry average and the S&P 500.
  • Net operating cash flow has increased to $120.28 million or 11.63% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -11.94%.

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