Red Cat (NASDAQ:RCAT) Shares Up 9.7% – Still a Buy?

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) shot up 9.7% on Monday . The stock traded as high as $8.28 and last traded at $8.26. Approximately 9,071,476 shares were traded during mid-day trading, a decline of 35% from the average daily volume of 14,051,607 shares. The stock had previously closed at $7.53.

Wall Street Analyst Weigh In

RCAT has been the topic of a number of recent analyst reports. Roth Capital initiated coverage on shares of Red Cat in a research report on Monday, June 1st. They set a “buy” rating and a $25.00 price target on the stock. Weiss Ratings reiterated a “sell (d-)” rating on shares of Red Cat in a research note on Friday, July 17th. Wall Street Zen cut Red Cat from a “sell” rating to a “strong sell” rating in a report on Saturday, July 18th. Clear Str upgraded Red Cat to a “strong-buy” rating in a research report on Wednesday, April 29th. Finally, UBS Group initiated coverage on Red Cat in a research note on Wednesday, May 27th. They set a “buy” rating for the company. Two equities research analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, Red Cat has an average rating of “Buy” and a consensus price target of $21.40.

Red Cat Trading Down 2.3%

The firm has a market capitalization of $1.06 billion, a P/E ratio of -12.37 and a beta of 1.31. The business’s fifty day moving average is $10.14 and its 200 day moving average is $11.92.

Red Cat (NASDAQ:RCAT) last posted its quarterly earnings results 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). The business had revenue of $15.47 million during 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 for the quarter was up 849.1% compared to the same quarter last year. As a group, sell-side analysts predict that Red Cat Holdings, Inc. will post -0.68 earnings per share for the current fiscal year.

Insider Activity

In other news, Director Paul Funk II sold 165,028 shares of the business’s stock in a transaction on Thursday, June 11th. The stock was sold at an average price of $11.50, for a total transaction of $1,897,822.00. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. 12.50% of the stock is owned by insiders.

Institutional Trading of Red Cat

Several institutional investors and hedge funds have recently bought and sold shares of RCAT. Bank of America Corp DE boosted its holdings in shares of Red Cat by 407.0% in the fourth 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 during the period. Royal Bank of Canada boosted its stake in Red Cat by 76.4% in the 1st quarter. Royal Bank of Canada now owns 57,800 shares of the company’s stock worth $340,000 after purchasing an additional 25,031 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in shares of Red Cat by 63.6% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 229,259 shares of the company’s stock valued at $1,348,000 after purchasing an additional 89,095 shares in the last quarter. Goldman Sachs Group Inc. raised its position in Red Cat by 28.7% during the first quarter. Goldman Sachs Group Inc. now owns 266,099 shares of the company’s stock valued at $1,565,000 after buying an additional 59,334 shares during the period. Finally, Cetera Investment Advisers purchased a new position in Red Cat during the 2nd quarter valued at about $97,000. Institutional investors and hedge funds own 37.97% of the company’s stock.

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.