Red Cat (NASDAQ:RCAT) Trading Up 6.8% – Should You Buy?

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s share price was up 6.8% on Tuesday . The stock traded as high as $11.11 and last traded at $11.0210. 4,199,962 shares traded hands during trading, a decline of 72% from the average daily volume of 15,010,750 shares. The stock had previously closed at $10.32.

Analysts Set New Price Targets

Several brokerages recently issued reports on RCAT. Weiss Ratings reiterated a “sell (d-)” rating on shares of Red Cat in a research note on Tuesday, April 21st. Clear Str raised Red Cat to a “strong-buy” rating in a research report on Wednesday, April 29th. HC Wainwright started coverage on Red Cat in a research note on Wednesday, May 27th. They issued a “buy” rating and a $20.00 price objective on the stock. LADENBURG THALM/SH SH upgraded Red Cat to a “strong-buy” rating in a research note on Wednesday, May 6th. Finally, UBS Group started coverage on Red Cat in a research note on Wednesday, May 27th. They set a “buy” rating for the company. Two research analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, Red Cat presently has a consensus rating of “Buy” and a consensus target price of $21.40.

Red Cat Stock Up 0.8%

The stock has a market capitalization of $1.28 billion, a price-to-earnings ratio of -14.89 and a beta of 1.23. The company’s fifty day simple moving average is $11.25 and its 200 day simple moving average is $12.06.

Red Cat (NASDAQ:RCAT) last posted its earnings results on Thursday, May 7th. The company reported ($0.22) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.12) by ($0.10). The company had revenue of $15.47 million for the quarter, compared to analyst estimates of $17.63 million. Red Cat had a negative return on equity of 35.86% and a negative net margin of 138.36%.The business’s revenue was up 849.1% on a year-over-year basis. As a group, analysts anticipate that Red Cat Holdings, Inc. will post -0.68 earnings per share for the current year.

Insiders Place Their Bets

In other Red Cat news, Director Paul Funk II sold 165,028 shares of the stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $11.50, for a total value of $1,897,822.00. The transaction was disclosed in a legal filing with the SEC, which is available through this link. 12.50% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Red Cat

Institutional investors and hedge funds have recently made changes to their positions in the company. IFP Advisors Inc raised its stake in Red Cat by 181.1% in the 3rd quarter. IFP Advisors Inc now owns 2,670 shares of the company’s stock worth $28,000 after purchasing an additional 1,720 shares in the last quarter. Fifth Third Bancorp acquired a new position in shares of Red Cat during the 1st quarter worth approximately $33,000. Montag A & Associates Inc. grew its position in shares of Red Cat by 552.0% during 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 bought a new position in shares of Red Cat during the second quarter worth approximately $34,000. Finally, NFSG Corp increased its holdings in shares of Red Cat by 200.0% during the first quarter. NFSG Corp now owns 3,000 shares of the company’s stock worth $39,000 after purchasing an additional 2,000 shares during the period. Institutional investors and hedge funds own 37.97% of the company’s stock.

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.