Shares of Red Hat Inc. (RHT) are up over 12% in early trading after the company beat Wall Street expectations by two cents.
The company earned $16 million, or 8 cents per share, compared with $22 million, or 10 cents per share, in the year-earlier quarter. Management credited the the appeal of its open-source Linux operating system, as companies looked to cut costs.
The Bottom Line
Shares of RHT are way off of all-time highs of $100 hit in late 1999. The stock has technical support in the $9-10 price area. If the shares can continue today's momentum, we see overhead resistance around the $18-20 price area. We do not currently rate this non-dividend paying stock, but do follow the name closely.
Red Hat Inc. (RHT) does not currently pay a dividend.
Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.
Tom Reese/Paul Rubillo
Dividend.com
