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Is Red Hat, Inc.(NYSE: RHT), a large market cap stock a smart buy?

With a market cap of has a large market cap size. Red Hat, Inc. (NYSE: RHT) has been on the stock market since its IPO date on the 08/11/1999. Red Hat, Inc. is in the Application Software industry and Technology sector. Average volume for Red Hat, Inc., is 1374.45, and so far today it has a volume of 1279000. Performance year to date since the 08/11/1999 is -12.28%.

To help you determine whether Red Hat, Inc. is undervalued the following values will help you decide. P/E is 63.44 and forward P/E is 27.95. PEG perhaps more useful shows that Red Hat, Inc. has a value for PEG of 3.7. P/S ratio is 6.15 and the P/B ratio is 9.75. The P/Cash and P/Free cash flow is 9.42 and 19.59 respectively.

At the current price Red Hat, Inc. is trading at, 72.64 (-0.07% today), Red Hat, Inc. has a dividend yield of *TBA, and this is covered by a payout ratio of 0.00%. Earnings per share (EPS) is 1.15, and this is looking to grow in the next year to 17.44% after growing 12.50% this past year. EPS growth quarter over quarter is 28.60%, and 18.10% for sales growth quarter over quarter.

The number of shares outstanding is 181.17, and the number of shares float is 179.85. The senior management bring insider ownership to 0.60%, and institutional ownership is at 96.50%. The float short is 2.89%, with the short ratio at a value of 3.78. Management has seen a return on assets of 5.30%, and also a return on investment of 10.30%.

The ability for Red Hat, Inc., to deal with debt, means it current ratio is 1.3, and quick ratio is 1.3. Long term debt/equity is 0.54 and total debt/equity is 0.54. In terms of margins, Red Hat, Inc. has a gross margin of 84.90%, with its operating margin at 13.70%, and Red Hat, Inc. has a profit margin of 9.90%.

The 52 week high is -13.97%, with 21.90% being its 52 week low. The 20 day simple moving average is -2.88% and the 200 day simple moving average is -2.97%.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.


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Mark Hines

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