Red Cat (NASDAQ:RCAT) Trading 10.6% Higher – Here’s What Happened

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) traded up 10.6% on Monday . The stock traded as high as $6.96 and last traded at $7.0340. 4,002,758 shares changed hands during mid-day trading, a decline of 55% from the average session volume of 8,849,029 shares. The stock had previously closed at $6.36.

Wall Street Analysts Forecast Growth

RCAT has been the topic of a number of recent analyst reports. LADENBURG THALM/SH SH raised shares of Red Cat to a “strong-buy” rating in a research note on Thursday, October 2nd. Weiss Ratings reissued a “sell (d-)” rating on shares of Red Cat in a report on Wednesday, October 8th. Northland Securities set a $16.00 price objective on shares of Red Cat in a report on Friday, August 15th. Needham & Company LLC cut their target price on shares of Red Cat from $17.00 to $12.00 and set a “buy” rating for the company in a research report on Friday, November 14th. Finally, Wall Street Zen downgraded Red Cat from a “hold” rating to a “sell” rating in a research report on Saturday, October 4th. Two equities research analysts have rated the stock with a Strong Buy rating, two have assigned a Buy rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of “Buy” and a consensus target price of $14.00.

Red Cat Stock Up 0.7%

The company has a fifty day moving average price of $10.55 and a 200 day moving average price of $9.11. The stock has a market cap of $874.99 million, a PE ratio of -16.66 and a beta of 1.45.

Red Cat (NASDAQ:RCAT) last posted its quarterly earnings results on Thursday, November 13th. The company reported ($0.16) earnings per share (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 analyst estimates of $8.18 million. Red Cat has set its Q4 2025 guidance at EPS. FY 2025 guidance at EPS. As a group, research analysts predict that Red Cat Holdings, Inc. will post -0.5 earnings per share for the current year.

Insider Activity

In related news, Director Christopher R. Moe sold 30,000 shares of the company’s stock in a transaction on Thursday, September 11th. The shares were sold at an average price of $10.11, for a total transaction of $303,300.00. Following the completion of the sale, the director directly owned 73,073 shares in the company, valued at $738,768.03. This represents a 29.11% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Insiders have sold a total of 60,000 shares of company stock valued at $611,000 in the last quarter. 15.30% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Red Cat

Hedge funds have recently modified their holdings of the company. VestGen Advisors LLC grew its holdings in shares of Red Cat by 4.9% during the 2nd quarter. VestGen Advisors LLC now owns 23,625 shares of the company’s stock worth $172,000 after acquiring an additional 1,097 shares during the period. Advisory Services Network LLC lifted its stake in shares of Red Cat by 5.3% in the 3rd quarter. Advisory Services Network LLC now owns 30,200 shares of the company’s stock valued at $313,000 after purchasing an additional 1,507 shares during the period. AlphaQuest LLC boosted its position in shares of Red Cat by 17.4% during the third quarter. AlphaQuest LLC now owns 10,839 shares of the company’s stock valued at $112,000 after purchasing an additional 1,608 shares in the last quarter. Toth Financial Advisory Corp grew its stake in Red Cat by 7.2% in the third quarter. Toth Financial Advisory Corp now owns 29,800 shares of the company’s stock worth $308,000 after purchasing an additional 2,000 shares during the period. Finally, Bank of America Corp DE grew 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 worth $44,000 after purchasing an additional 2,727 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 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.