Red Cat (NASDAQ:RCAT) Trading Up 6.1% – Should You Buy?

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) shot up 6.1% during trading on Tuesday . The company traded as high as $16.88 and last traded at $16.08. 22,448,558 shares traded hands during mid-day trading, an increase of 34% from the average session volume of 16,815,205 shares. The stock had previously closed at $15.15.

Analyst Ratings Changes

A number of brokerages recently weighed in on RCAT. Wall Street Zen raised shares of Red Cat from a “sell” rating to a “hold” rating in a research report on Saturday, March 21st. Needham & Company LLC raised their price objective on Red Cat from $16.00 to $20.00 and gave the company a “buy” rating in a research report on Thursday, March 19th. Northland Securities set a $22.00 price objective on Red Cat in a research note on Tuesday, January 20th. LADENBURG THALM/SH SH upped their target price on Red Cat from $15.00 to $20.00 and gave the stock a “buy” rating in a research report on Tuesday, March 3rd. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of Red Cat in a research note on Thursday, January 22nd. Two equities research analysts have rated the stock with a Buy rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $20.67.

Red Cat Price Performance

The business’s 50-day moving average price is $14.07 and its 200 day moving average price is $11.32. The firm has a market capitalization of $1.70 billion, a price-to-earnings ratio of -18.67 and a beta of 1.53.

Red Cat (NASDAQ:RCAT) last released its quarterly earnings results on Wednesday, March 18th. The company reported ($0.17) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.14) by ($0.03). Red Cat had a negative net margin of 176.96% and a negative return on equity of 38.86%. The firm had revenue of $26.24 million for the quarter, compared to analyst estimates of $24.50 million. As a group, sell-side analysts expect that Red Cat Holdings, Inc. will post -0.5 earnings per share for the current year.

Institutional Trading of Red Cat

Large investors have recently modified their holdings of the business. Caitong International Asset Management Co. Ltd increased its position in shares of Red Cat by 1,825.1% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 54,152 shares of the company’s stock worth $429,000 after acquiring an additional 51,339 shares during the last quarter. Virtu Financial LLC acquired a new position in shares of Red Cat in the fourth quarter worth about $196,000. Invesco Ltd. boosted its holdings in Red Cat by 36.3% in the fourth quarter. Invesco Ltd. now owns 237,038 shares of the company’s stock valued at $1,880,000 after purchasing an additional 63,098 shares during the last quarter. Vident Advisory LLC purchased a new position in Red Cat in the fourth quarter valued at about $1,009,000. Finally, Janus Henderson Group PLC grew its stake in Red Cat by 29.5% during the 4th quarter. Janus Henderson Group PLC now owns 47,115 shares of the company’s stock valued at $374,000 after purchasing an additional 10,723 shares in the last quarter. 37.97% of the stock is currently owned by institutional investors and hedge funds.

Red Cat Company Profile

Red Cat Holdings, Inc (NASDAQ: RCAT) is a technology holding company that develops and delivers advanced robotics, autonomy, and sensing solutions for defense, national security, public safety and commercial customers. Headquartered in American Fork, Utah, the company brings together a portfolio of specialized operating businesses focused on unmanned aerial systems (UAS), mission management software, precision mapping sensors and engineering services.

Through its UAS segment, Red Cat designs and manufactures small to medium-sized fixed-wing and vertical-takeoff drones that support intelligence, surveillance and reconnaissance (ISR) missions.