Red Cat (NASDAQ:RCAT) Shares Gap Down – Should You Sell?

Red Cat Holdings, Inc. (NASDAQ:RCAT) shares gapped down before the market opened on Monday . The stock had previously closed at $12.47, but opened at $11.98. Red Cat shares last traded at $12.5610, with a volume of 1,394,424 shares traded.

Analysts Set New Price Targets

Several research firms have recently weighed in on RCAT. Northland Securities set a $22.00 price objective on Red Cat in a report on Tuesday, January 20th. LADENBURG THALM/SH SH upgraded shares of Red Cat to a “strong-buy” rating in a research report on Thursday, December 18th. Needham & Company LLC raised their price objective on shares of Red Cat from $12.00 to $16.00 and gave the stock a “buy” rating in a research report on Tuesday, January 13th. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Red Cat in a research note on Thursday, January 22nd. Two investment analysts have rated the stock with a Strong Buy rating, one has given a Buy rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Buy” and an average price target of $19.00.

Red Cat Stock Up 1.4%

The company has a market cap of $1.51 billion, a price-to-earnings ratio of -28.53 and a beta of 1.50. The business has a fifty day simple moving average of $11.64 and a 200 day simple moving average of $10.44.

Hedge Funds Weigh In On Red Cat

Several hedge funds have recently bought and sold shares of the company. Moors & Cabot Inc. raised its position in shares of Red Cat by 65.6% during the 2nd quarter. Moors & Cabot Inc. now owns 280,825 shares of the company’s stock worth $2,044,000 after purchasing an additional 111,225 shares during the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. increased its position in Red Cat by 31.1% during the second quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 157,704 shares of the company’s stock worth $1,148,000 after buying an additional 37,407 shares in the last quarter. Rockefeller Capital Management L.P. acquired a new position in shares of Red Cat in the second quarter worth $546,000. AWM Investment Company Inc. lifted its position in shares of Red Cat by 15.3% in the second quarter. AWM Investment Company Inc. now owns 2,037,616 shares of the company’s stock valued at $14,834,000 after acquiring an additional 269,942 shares in the last quarter. Finally, Kornitzer Capital Management Inc. KS acquired a new stake in shares of Red Cat during the third quarter valued at $880,000. 37.97% of the stock is owned by hedge funds and other institutional investors.

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.