Red Cat (NASDAQ:RCAT) Trading Up 6.5% – What’s Next?

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s stock price shot up 6.5% during trading on Thursday . The stock traded as high as $13.13 and last traded at $12.94. 15,011,569 shares were traded during mid-day trading, a decline of 10% from the average session volume of 16,589,801 shares. The stock had previously closed at $12.15.

Analysts Set New Price Targets

A number of analysts have issued reports on the company. Needham & Company LLC lifted their price target on Red Cat from $16.00 to $20.00 and gave the stock a “buy” rating in a report on Thursday, March 19th. Northland Securities set a $22.00 price objective on Red Cat in a report on Tuesday, January 20th. Weiss Ratings reissued a “sell (d-)” rating on shares of Red Cat in a research report on Thursday, January 22nd. Wall Street Zen raised Red Cat from a “sell” rating to a “hold” rating in a report on Saturday, March 21st. Finally, LADENBURG THALM/SH SH increased their price target on shares of Red Cat from $15.00 to $20.00 and gave the company a “buy” rating in a research note on Tuesday, March 3rd. Two equities research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Red Cat has a consensus rating of “Hold” and a consensus price target of $20.67.

Red Cat Trading Up 6.5%

The stock has a market capitalization of $1.57 billion, a price-to-earnings ratio of -17.25 and a beta of 1.45. The company’s 50 day moving average is $13.91 and its 200 day moving average is $11.43.

Red Cat (NASDAQ:RCAT) last released its quarterly earnings data on Wednesday, March 18th. The company reported ($0.17) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.14) by ($0.03). The company had revenue of $26.24 million during the quarter, compared to analyst estimates of $24.50 million. Red Cat had a negative net margin of 176.96% and a negative return on equity of 38.86%. Analysts anticipate that Red Cat Holdings, Inc. will post -0.5 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in RCAT. Bank of America Corp DE lifted its stake in Red Cat by 407.0% in the fourth quarter. Bank of America Corp DE now owns 3,397 shares of the company’s stock valued at $44,000 after buying an additional 2,727 shares during the last quarter. Royal Bank of Canada grew its position in shares of Red Cat by 76.4% during the first quarter. Royal Bank of Canada now owns 57,800 shares of the company’s stock worth $340,000 after acquiring an additional 25,031 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in shares of 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 valued at $1,348,000 after acquiring an additional 89,095 shares during the period. Goldman Sachs Group Inc. raised its position in Red Cat by 28.7% in the 1st quarter. Goldman Sachs Group Inc. now owns 266,099 shares of the company’s stock valued at $1,565,000 after purchasing an additional 59,334 shares during the last quarter. Finally, Geode Capital Management LLC boosted its stake in Red Cat by 142.7% during the 2nd 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 period. Hedge funds and other institutional investors 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.