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 $8.32, but opened at $8.71. Red Cat shares last traded at $8.48, with a volume of 2,432,199 shares traded.

Analyst Upgrades and Downgrades

RCAT has been the topic of a number of recent research reports. Needham & Company LLC dropped their price objective on shares of Red Cat from $20.00 to $15.00 and set a “buy” rating on the stock in a research note on Friday, August 7th. HC Wainwright reiterated a “buy” rating and set a $20.00 target price on shares of Red Cat in a research note on Friday, August 7th. Evercore started coverage on Red Cat in a report on Monday, August 31st. They set an “outperform” rating and a $15.00 price target on the stock. Wall Street Zen cut Red Cat from a “sell” rating to a “strong sell” rating in a research report on Saturday, July 18th. Finally, UBS Group started coverage on Red Cat in a research note on Wednesday, May 27th. They set a “buy” rating for the company. Two analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Red Cat currently has a consensus rating of “Moderate Buy” and a consensus target price of $18.00.

Red Cat Price Performance

The stock’s 50-day moving average is $8.98 and its 200 day moving average is $11.21. The stock has a market cap of $1.03 billion, a price-to-earnings ratio of -10.33 and a beta of 1.35.

Red Cat (NASDAQ:RCAT) last released its earnings results on Thursday, August 6th. The company reported ($0.26) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.21) by ($0.05). The business had revenue of $20.20 million for the quarter, compared to analyst estimates of $22.65 million. Red Cat had a negative return on equity of 32.25% and a negative net margin of 136.26%. Analysts anticipate that Red Cat Holdings, Inc. will post -0.77 EPS for the current year.

Insider Buying and Selling

In other Red Cat news, Director Christopher Moe sold 20,000 shares of the stock in a transaction on Tuesday, August 11th. The stock was sold at an average price of $10.51, for a total value of $210,200.00. Following the completion of the transaction, the director owned 200,502 shares in the company, valued at approximately $2,107,276.02. This represents a 9.07% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Paul Funk, II sold 165,028 shares of the firm’s stock in a transaction on Thursday, June 11th. The shares were sold at an average price of $11.50, for a total value of $1,897,822.00. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 240,028 shares of company stock valued at $2,692,672 over the last quarter. Company insiders own 12.50% of the company’s stock.

Hedge Funds Weigh In On Red Cat

Hedge funds and other institutional investors have recently bought and sold shares of the company. Allworth Financial LP acquired a new stake in Red Cat in the second quarter valued at $28,000. IFP Advisors Inc boosted its position in shares of Red Cat by 181.1% in the 3rd quarter. IFP Advisors Inc now owns 2,670 shares of the company’s stock worth $28,000 after buying an additional 1,720 shares in the last quarter. Fifth Third Bancorp purchased a new stake in shares of Red Cat in the 1st quarter worth about $33,000. California State Teachers Retirement System purchased a new stake in shares of Red Cat in the 2nd quarter worth about $34,000. Finally, NFSG Corp grew its stake in Red Cat by 200.0% in the 1st quarter. NFSG Corp now owns 3,000 shares of the company’s stock valued at $39,000 after acquiring an additional 2,000 shares during the last quarter. 37.97% of the stock is owned by institutional investors and hedge funds.

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.