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

Red Cat Holdings, Inc. (NASDAQ:RCAT) shares gapped up prior to trading on Wednesday . The stock had previously closed at $8.55, but opened at $8.97. Red Cat shares last traded at $8.6720, with a volume of 1,476,171 shares trading hands.

Wall Street Analysts Forecast Growth

RCAT has been the subject of a number of analyst reports. Weiss Ratings reissued a “sell (d-)” rating on shares of Red Cat in a report on Tuesday, April 21st. Needham & Company LLC increased their price target on Red Cat from $16.00 to $20.00 and gave the company a “buy” rating in a report on Thursday, March 19th. Clear Str raised Red Cat to a “strong-buy” rating in a report on Wednesday, April 29th. Wall Street Zen downgraded Red Cat from a “hold” rating to a “sell” rating in a report on Saturday, May 2nd. Finally, LADENBURG THALM/SH SH raised Red Cat to a “strong-buy” rating in a report on Wednesday, May 6th. Two analysts have rated the stock with a Strong Buy rating, one has assigned a Buy rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, Red Cat currently has an average rating of “Buy” and a consensus target price of $20.67.

Red Cat Stock Up 1.0%

The company has a 50 day simple moving average of $12.54 and a 200-day simple moving average of $11.35. The stock has a market cap of $1.11 billion, a price-to-earnings ratio of -12.90 and a beta of 1.21.

Red Cat (NASDAQ:RCAT) last announced its quarterly earnings data 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 net margin of 138.36% and a negative return on equity of 35.86%. The firm had revenue of $15.47 million for the quarter, compared to analyst estimates of $17.63 million. The business’s quarterly revenue was up 849.1% compared to the same quarter last year. On average, equities research analysts expect that Red Cat Holdings, Inc. will post -0.65 EPS for the current fiscal year.

Institutional Trading of Red Cat

Institutional investors and hedge funds have recently made changes to their positions in the stock. Brevan Howard Capital Management LP acquired a new stake in shares of Red Cat during the 3rd quarter worth approximately $19,739,000. Tudor Investment Corp ET AL raised its position in shares of Red Cat by 214.0% during the 3rd quarter. Tudor Investment Corp ET AL now owns 1,277,523 shares of the company’s stock worth $13,222,000 after purchasing an additional 870,612 shares during the period. Kornitzer Capital Management Inc. KS acquired a new stake in shares of Red Cat during the 3rd quarter worth approximately $880,000. SG Americas Securities LLC acquired a new stake in shares of Red Cat during the 3rd quarter worth approximately $418,000. Finally, Baader Bank Aktiengesellschaft acquired a new stake in shares of Red Cat during the 3rd quarter worth approximately $491,000. 37.97% of the stock is currently 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.