Red Hat, Inc.: Are Hedge Funds Right About This Stock?
Red Hat, Inc. shareholders have witnessed an increase in enthusiasm from smart money in recent months.
In the 21st century investor’s toolkit, there are many metrics investors can use to analyze publicly traded companies. Two of the most useful are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the top hedge fund managers can trounce the market by a very impressive amount (see just how much).
Equally as key, optimistic insider trading activity is another way to parse down the financial markets. Obviously, there are many stimuli for an insider to sell shares of his or her company, but only one, very simple reason why they would buy. Plenty of academic studies have demonstrated the useful potential of this method if piggybackers understand where to look (learn more here).
With all of this in mind, it's important to take a glance at the recent action surrounding Red Hat, Inc..