Red Cat (NASDAQ:RCAT) Trading Up 12.9% – Here’s Why

Red Cat Holdings, Inc. (NASDAQ:RCAT) shares shot up 12.9% during trading on Tuesday . The company traded as high as $13.28 and last traded at $13.09. 14,298,314 shares were traded during trading, a decline of 14% from the average session volume of 16,662,281 shares. The stock had previously closed at $11.59.

Analyst Ratings Changes

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

Red Cat Stock Performance

The firm has a market cap of $1.47 billion, a P/E ratio of -16.20 and a beta of 1.45. The stock’s 50 day simple moving average is $13.91 and its 200 day simple moving average is $11.43.

Red Cat (NASDAQ:RCAT) last posted its earnings results on Wednesday, March 18th. The company reported ($0.17) EPS for the quarter, missing the consensus estimate of ($0.14) by ($0.03). Red Cat had a negative return on equity of 38.86% and a negative net margin of 176.96%.The business had revenue of $26.24 million for the quarter, compared to the consensus estimate of $24.50 million. As a group, analysts forecast that Red Cat Holdings, Inc. will post -0.5 EPS for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Bank of America Corp DE grew its stake in Red Cat by 407.0% in the 4th quarter. Bank of America Corp DE now owns 3,397 shares of the company’s stock worth $44,000 after buying an additional 2,727 shares in the last quarter. Royal Bank of Canada grew its holdings in shares of Red Cat by 76.4% during the 1st quarter. Royal Bank of Canada now owns 57,800 shares of the company’s stock valued at $340,000 after purchasing an additional 25,031 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in Red Cat by 63.6% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 229,259 shares of the company’s stock worth $1,348,000 after purchasing an additional 89,095 shares during the period. Goldman Sachs Group Inc. lifted its stake in Red Cat by 28.7% in the first quarter. Goldman Sachs Group Inc. now owns 266,099 shares of the company’s stock worth $1,565,000 after purchasing an additional 59,334 shares during the last quarter. Finally, Geode Capital Management LLC lifted its stake in Red Cat by 142.7% in the second quarter. Geode Capital Management LLC now owns 1,656,720 shares of the company’s stock worth $12,063,000 after purchasing an additional 974,121 shares during the last quarter. 37.97% of the stock is currently owned by institutional investors.

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.