Red Cat (NASDAQ:RCAT) Shares Gap Up – Time to Buy?

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s share price gapped up prior to trading on Wednesday . The stock had previously closed at $8.55, but opened at $8.97. Red Cat shares last traded at $8.6720, with a volume of 1,476,171 shares trading hands.

Analyst Upgrades and Downgrades

A number of equities research analysts have commented on RCAT shares. Needham & Company LLC increased their price target on Red Cat from $16.00 to $20.00 and gave the company a “buy” rating in a research note on Thursday, March 19th. Clear Str upgraded Red Cat to a “strong-buy” rating in a research note on Wednesday, April 29th. Wall Street Zen cut Red Cat from a “hold” rating to a “sell” rating in a research note on Saturday, May 2nd. LADENBURG THALM/SH SH upgraded Red Cat to a “strong-buy” rating in a research note on Wednesday, May 6th. Finally, Northland Securities set a $22.00 price target on Red Cat in a research note on Tuesday, January 20th. Two research analysts have rated the stock with a Strong Buy rating, one has issued a Buy rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Buy” and an average price target of $20.67.

Red Cat Stock Up 4.2%

The stock has a market capitalization of $1.09 billion, a PE ratio of -12.69 and a beta of 1.21. The firm has a 50 day moving average price of $12.76 and a 200-day moving average price of $11.38.

Red Cat (NASDAQ:RCAT) last announced its quarterly earnings data on Thursday, May 7th. The company reported ($0.22) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.12) by ($0.10). Red Cat had a negative return on equity of 35.86% and a negative net margin of 138.36%.The firm had revenue of $15.47 million during the quarter, compared to analysts’ expectations of $17.63 million. The business’s revenue for the quarter was up 849.1% compared to the same quarter last year. Equities analysts expect that Red Cat Holdings, Inc. will post -0.65 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the company. Norris Financial Group LLC purchased a new position in shares of Red Cat in the first quarter worth about $194,000. Western Wealth Management LLC raised its stake in shares of Red Cat by 4.5% in the first quarter. Western Wealth Management LLC now owns 36,722 shares of the company’s stock worth $481,000 after purchasing an additional 1,570 shares during the last quarter. Bank of America Corp DE raised its stake in shares of Red Cat by 46.1% in the first quarter. Bank of America Corp DE now owns 203,366 shares of the company’s stock worth $2,662,000 after purchasing an additional 64,145 shares during the last quarter. Janus Henderson Group PLC raised its stake in shares of Red Cat by 733.7% in the first quarter. Janus Henderson Group PLC now owns 392,808 shares of the company’s stock worth $5,141,000 after purchasing an additional 345,693 shares during the last quarter. Finally, Amundi purchased a new position in Red Cat during the first quarter valued at approximately $135,000. 37.97% of the stock is currently owned by hedge funds and other institutional investors.

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.