How Does Red Hat, Inc. (RHT) Stack Up Right Now?

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 $106.16, up from yesterday’s close by 0.61%. 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

Does this stock stack up well when compared to its peers in the industry space? Let’s take a look. Red Hat, Inc. (RHT) currently trades with a market capitalization of $18.82 Billion.

The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For RHT, the company currently has $1.23 Billion of cash on the books. You can get a sense of how sustainable that is by a levered free cash flow of $720.15 Million over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $0.47 on a per share basis this quarter. Perhaps, that suggests something about why 95.44% 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 $105.92. It is now trading -0.23999999999999% off that level. The stock is trading $99.33 its 50-day moving average by -6.83%. The stock carved out a 52-week low down at $68.54.

In recent action, Red Hat, Inc. (RHT) has made a move of +7.94% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is outperforming the S&P 500 by 30.06, 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 1.78% with $176.51 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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