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

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s stock price gapped up before the market opened on Thursday . The stock had previously closed at $6.61, but opened at $7.12. Red Cat shares last traded at $7.0360, with a volume of 1,838,058 shares traded.

Analysts Set New Price Targets

Several equities research analysts recently commented on the stock. Wall Street Zen cut shares of Red Cat from a “hold” rating to a “sell” rating in a research report on Saturday, October 4th. Weiss Ratings reissued a “sell (d-)” rating on shares of Red Cat in a research note on Wednesday, October 8th. Northland Securities set a $16.00 price objective on Red Cat in a research report on Friday, August 15th. LADENBURG THALM/SH SH upgraded Red Cat to a “strong-buy” rating in a report on Thursday, October 2nd. Finally, Needham & Company LLC cut their target price on Red Cat from $17.00 to $12.00 and set a “buy” rating on the stock in a research note on Friday, November 14th. Two equities research analysts have rated the stock with a Strong Buy rating, two have given a Buy rating and one has given a Sell rating to the company. Based on data from MarketBeat, Red Cat has an average rating of “Buy” and an average price target of $14.00.

Red Cat Trading Down 2.8%

The company has a market capitalization of $766.84 million, a price-to-earnings ratio of -14.66 and a beta of 1.45. The stock’s 50 day moving average price is $10.88 and its 200 day moving average price is $9.05.

Red Cat (NASDAQ:RCAT) last issued its quarterly earnings results on Thursday, November 13th. The company reported ($0.16) EPS for the quarter, missing the consensus estimate of ($0.07) by ($0.09). The company had revenue of $9.65 million during the quarter, compared to analysts’ expectations of $8.18 million. Red Cat has set its Q4 2025 guidance at EPS. FY 2025 guidance at EPS. On average, research analysts expect that Red Cat Holdings, Inc. will post -0.5 earnings per share for the current year.

Insider Buying and Selling at Red Cat

In other news, Director Christopher R. Moe sold 30,000 shares of the company’s stock in a transaction dated Thursday, September 11th. The shares were sold at an average price of $10.11, for a total value of $303,300.00. Following the sale, the director directly owned 73,073 shares of the company’s stock, valued at approximately $738,768.03. This represents a 29.11% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. In the last quarter, insiders have sold 60,000 shares of company stock worth $611,000. 15.30% of the stock is owned by insiders.

Hedge Funds Weigh In On Red Cat

Hedge funds and other institutional investors have recently bought and sold shares of the business. Montag A & Associates Inc. lifted its position in shares of Red Cat by 552.0% in the third quarter. Montag A & Associates Inc. now owns 3,260 shares of the company’s stock valued at $34,000 after buying an additional 2,760 shares during the last quarter. Bank of America Corp DE increased its holdings in shares of Red Cat by 407.0% during the 4th quarter. Bank of America Corp DE now owns 3,397 shares of the company’s stock worth $44,000 after acquiring an additional 2,727 shares during the last quarter. Global Retirement Partners LLC acquired a new position in shares of Red Cat during the 3rd quarter worth approximately $36,000. Penserra Capital Management LLC bought a new stake in Red Cat in the 3rd quarter valued at $46,000. Finally, California State Teachers Retirement System acquired a new stake in Red Cat during the 2nd quarter valued at $34,000. Institutional investors own 37.97% of the company’s stock.

About Red Cat

Red Cat Holdings, Inc engages in the provision of various products, services, and solutions to the drone industry. The company operates through two segments: Enterprise and Consumer. It built infrastructure to manages drone fleets and fly, and provide services remotely, navigate confined industrial interior spaces and dangerous military environment.