Red Cat (NASDAQ:RCAT) Shares Gap Up – Should You Buy?

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s share price gapped up prior to trading on Monday . The stock had previously closed at $9.28, but opened at $9.81. Red Cat shares last traded at $9.6940, with a volume of 1,969,495 shares trading hands.

Analyst Upgrades and Downgrades

A number of equities analysts recently commented on RCAT shares. UBS Group assumed coverage on shares of Red Cat in a research report on Wednesday, May 27th. They set a “buy” rating on the stock. Clear Str raised shares of Red Cat to a “strong-buy” rating in a report on Wednesday, April 29th. LADENBURG THALM/SH SH upgraded shares of Red Cat to a “strong-buy” rating in a research report on Wednesday, May 6th. Roth Mkm began coverage on shares of Red Cat in a report on Monday, June 1st. They set a “buy” rating and a $25.00 target price on the stock. Finally, HC Wainwright initiated coverage on shares of Red Cat in a research report on Wednesday, May 27th. They issued a “buy” rating and a $20.00 price target for the company. Two analysts have rated the stock with a Strong Buy rating, four have issued a Buy rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of “Buy” and an average target price of $21.40.

Red Cat Price Performance

The stock has a 50-day simple moving average of $11.20 and a 200-day simple moving average of $12.07. The stock has a market cap of $1.31 billion, a P/E ratio of -15.21 and a beta of 1.23.

Red Cat (NASDAQ:RCAT) last posted its earnings results on Thursday, May 7th. The company reported ($0.22) EPS for the quarter, missing analysts’ consensus estimates 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 company had revenue of $15.47 million during the quarter, compared to the consensus estimate of $17.63 million. Red Cat’s quarterly revenue was up 849.1% compared to the same quarter last year. As a group, sell-side analysts forecast that Red Cat Holdings, Inc. will post -0.68 earnings per share for the current year.

Insider Transactions at Red Cat

In related news, Director Paul Funk II sold 165,028 shares of the company’s stock in a transaction that occurred on Thursday, June 11th. The shares were sold at an average price of $11.50, for a total transaction of $1,897,822.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. 12.50% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of RCAT. IFP Advisors Inc boosted its holdings in shares of Red Cat by 181.1% during the 3rd quarter. IFP Advisors Inc now owns 2,670 shares of the company’s stock valued at $28,000 after acquiring an additional 1,720 shares in the last quarter. Fifth Third Bancorp bought a new stake in Red Cat during the 1st quarter worth $33,000. Montag A & Associates Inc. increased its holdings in Red Cat by 552.0% in the 3rd quarter. Montag A & Associates Inc. now owns 3,260 shares of the company’s stock worth $34,000 after purchasing an additional 2,760 shares in the last quarter. California State Teachers Retirement System acquired a new position in Red Cat in the 2nd quarter worth about $34,000. Finally, NFSG Corp raised its position in Red Cat by 200.0% in the first quarter. NFSG Corp now owns 3,000 shares of the company’s stock valued at $39,000 after purchasing an additional 2,000 shares during the last quarter. 37.97% of the stock is currently owned by institutional investors and hedge funds.

About Red Cat

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.