Red Cat (NASDAQ:RCAT) Shares Gap Up – What’s Next?

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s share price gapped up before the market opened on Wednesday . The stock had previously closed at $9.77, but opened at $10.25. Red Cat shares last traded at $10.4030, with a volume of 6,174,692 shares changing hands.

Analyst Ratings Changes

A number of analysts recently weighed in on RCAT shares. LADENBURG THALM/SH SH raised shares of Red Cat to a “strong-buy” rating in a research note on Wednesday, May 6th. UBS Group assumed coverage on shares of Red Cat in a research report on Wednesday. They issued a “buy” rating for the company. HC Wainwright started coverage on shares of Red Cat in a research note on Wednesday. They set a “buy” rating and a $20.00 target price for the company. Needham & Company LLC lifted their price objective on shares of Red Cat from $16.00 to $20.00 and gave the stock a “buy” rating in a research note on Thursday, March 19th. Finally, Wall Street Zen cut shares of Red Cat from a “hold” rating to a “sell” rating in a research report on Saturday, May 2nd. Two investment analysts have rated the stock with a Strong Buy rating, three have given a Buy rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of “Buy” and an average target price of $20.50.

Red Cat Trading Up 8.4%

The company has a market cap of $1.30 billion, a P/E ratio of -15.12 and a beta of 1.21. The stock’s 50-day moving average price is $12.15 and its 200-day moving average price is $11.35.

Red Cat (NASDAQ:RCAT) last issued 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). Red Cat had a negative return on equity of 35.86% and a negative net margin of 138.36%.The company had revenue of $15.47 million for the quarter, compared to analysts’ expectations of $17.63 million. The business’s quarterly revenue was up 849.1% on a year-over-year basis. On average, research analysts anticipate that Red Cat Holdings, Inc. will post -0.65 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Red Cat

A number of hedge funds have recently modified their holdings of the company. Fifth Third Bancorp bought a new stake in shares of Red Cat during the 1st quarter valued at about $33,000. IFP Advisors Inc increased its holdings in Red Cat by 181.1% during the third quarter. IFP Advisors Inc now owns 2,670 shares of the company’s stock valued at $28,000 after buying an additional 1,720 shares during the last quarter. NFSG Corp increased its stake in shares of Red Cat by 200.0% in the first quarter. NFSG Corp now owns 3,000 shares of the company’s stock worth $39,000 after purchasing an additional 2,000 shares in the last quarter. PNC Financial Services Group Inc. increased its stake in shares of Red Cat by 294.6% in the first quarter. PNC Financial Services Group Inc. now owns 3,042 shares of the company’s stock worth $40,000 after purchasing an additional 2,271 shares in the last quarter. Finally, Montag A & Associates Inc. grew its stake in Red Cat by 552.0% during the third quarter. Montag A & Associates Inc. now owns 3,260 shares of the company’s stock valued at $34,000 after acquiring an additional 2,760 shares in the last quarter. Hedge funds and other institutional investors 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.