Red Cat (NASDAQ:RCAT) Trading Up 5.2% – Should You Buy?

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s share price traded up 5.2% during mid-day trading on Thursday . The company traded as high as $13.83 and last traded at $13.71. 9,967,968 shares were traded during trading, a decline of 37% from the average session volume of 15,810,123 shares. The stock had previously closed at $13.03.

Analysts Set New Price Targets

A number of research analysts have recently issued reports on the stock. Needham & Company LLC boosted their price target on shares of 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 research note on Thursday, January 22nd. Wall Street Zen upgraded shares of Red Cat from a “sell” rating to a “hold” rating in a research note on Saturday, March 21st. Northland Securities set a $22.00 price target on shares of Red Cat in a research note on Tuesday, January 20th. Finally, LADENBURG THALM/SH SH boosted their price target on shares of Red Cat from $15.00 to $20.00 and gave the stock a “buy” rating in a research note on Tuesday, March 3rd. Two research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Hold” and an average price target of $20.67.

Red Cat Price Performance

The firm’s 50-day simple moving average is $13.47 and its two-hundred day simple moving average is $11.57. The company has a market capitalization of $1.66 billion, a price-to-earnings ratio of -18.28 and a beta of 1.46.

Red Cat (NASDAQ:RCAT) last issued its earnings results on Wednesday, March 18th. The company reported ($0.17) earnings per share 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 company had revenue of $26.24 million for the quarter, compared to analyst estimates of $24.50 million. On average, analysts expect that Red Cat Holdings, Inc. will post -0.5 EPS for the current fiscal year.

Institutional Trading of Red Cat

Several large investors have recently modified their holdings of RCAT. State Street Corp grew its position in shares of Red Cat by 136.4% in the fourth quarter. State Street Corp now owns 6,612,153 shares of the company’s stock valued at $52,434,000 after purchasing an additional 3,815,310 shares during the last quarter. Brevan Howard Capital Management LP acquired a new stake in shares of Red Cat in the third quarter valued at approximately $19,739,000. Vanguard Group Inc. grew its position in shares of Red Cat by 43.9% in the third quarter. Vanguard Group Inc. now owns 5,506,377 shares of the company’s stock valued at $56,991,000 after purchasing an additional 1,680,929 shares during the last quarter. Davidson Kempner Capital Management LP acquired a new stake in shares of Red Cat in the third quarter valued at approximately $17,286,000. Finally, CenterBook Partners LP lifted its stake in shares of Red Cat by 1,872.4% during the fourth quarter. CenterBook Partners LP now owns 1,105,132 shares of the company’s stock valued at $8,764,000 after buying an additional 1,049,101 shares during the period. 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.