Red Cat (NASDAQ:RCAT) Trading 8.6% Higher – Still a Buy?

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) traded up 8.6% during mid-day trading on Monday . The company traded as high as $14.26 and last traded at $13.71. 10,331,163 shares were traded during mid-day trading, a decline of 32% from the average session volume of 15,091,621 shares. The stock had previously closed at $12.63.

Wall Street Analyst Weigh In

Several equities research analysts have commented on RCAT shares. Needham & Company LLC upped their target price on shares of Red Cat from $12.00 to $16.00 and gave the company a “buy” rating in a research note on Tuesday, January 13th. Northland Securities set a $22.00 price objective on Red Cat in a report on Tuesday, January 20th. LADENBURG THALM/SH SH raised shares of Red Cat to a “strong-buy” rating in a research report on Thursday, December 18th. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of Red Cat in a research note on Thursday, January 22nd. Two investment analysts have rated the stock with a Strong Buy rating, one has given a Buy rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Buy” and a consensus price target of $19.00.

Red Cat Stock Up 8.6%

The firm has a market capitalization of $1.64 billion, a price-to-earnings ratio of -31.16 and a beta of 1.50. The company’s 50 day moving average is $10.95 and its 200 day moving average is $10.24.

Red Cat (NASDAQ:RCAT) last released its earnings results on Thursday, November 13th. The company reported ($0.16) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.07) by ($0.09). The firm had revenue of $9.65 million during the quarter, compared to analysts’ expectations of $8.18 million. On average, analysts expect that Red Cat Holdings, Inc. will post -0.5 EPS for the current year.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. lifted its stake in Red Cat by 9.0% during the fourth quarter. Vanguard Group Inc. now owns 6,000,037 shares of the company’s stock worth $47,580,000 after purchasing an additional 493,660 shares during the last quarter. Geode Capital Management LLC lifted its position in shares of Red Cat by 13.4% during the 4th quarter. Geode Capital Management LLC now owns 2,520,524 shares of the company’s stock worth $19,991,000 after buying an additional 297,967 shares during the last quarter. AWM Investment Company Inc. boosted its stake in Red Cat by 15.3% in the second quarter. AWM Investment Company Inc. now owns 2,037,616 shares of the company’s stock valued at $14,834,000 after buying an additional 269,942 shares in the last quarter. Brevan Howard Capital Management LP bought a new position in Red Cat in the third quarter valued at about $19,739,000. Finally, Davidson Kempner Capital Management LP acquired a new position in Red Cat during the third quarter worth about $17,286,000. 37.97% of the stock is currently owned by institutional investors and hedge funds.

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.