Red Cat (NASDAQ:RCAT) Shares Gap Up – Here’s Why

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s share price gapped up before the market opened on Thursday . The stock had previously closed at $10.45, but opened at $11.23. Red Cat shares last traded at $12.1070, with a volume of 11,367,781 shares.

Analyst Ratings Changes

Several research firms have recently issued reports on RCAT. LADENBURG THALM/SH SH raised Red Cat to a “strong-buy” rating in a report on Thursday, December 18th. Wall Street Zen lowered shares of Red Cat from a “hold” rating to a “sell” rating in a report on Saturday, October 4th. Needham & Company LLC cut their price target on shares of Red Cat from $17.00 to $12.00 and set a “buy” rating for the company in a report on Friday, November 14th. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of Red Cat in a research report on Wednesday, October 8th. Two research analysts have rated the stock with a Strong Buy rating, two have assigned a Buy rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Buy” and a consensus target price of $14.00.

Red Cat Price Performance

The firm has a 50-day simple moving average of $8.32 and a 200 day simple moving average of $9.39. The stock has a market capitalization of $1.40 billion, a P/E ratio of -26.59 and a beta of 1.48.

Red Cat (NASDAQ:RCAT) last released its quarterly earnings data 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 firm had revenue of $9.65 million during the quarter, compared to the consensus estimate of $8.18 million. Sell-side analysts anticipate that Red Cat Holdings, Inc. will post -0.5 earnings per share for the current fiscal year.

Institutional Trading of Red Cat

Several institutional investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. raised its holdings in Red Cat by 43.9% during the 3rd quarter. Vanguard Group Inc. now owns 5,506,377 shares of the company’s stock worth $56,991,000 after purchasing an additional 1,680,929 shares during the last quarter. AWM Investment Company Inc. increased its position in shares of Red Cat by 15.3% during the second quarter. AWM Investment Company Inc. now owns 2,037,616 shares of the company’s stock worth $14,834,000 after buying an additional 269,942 shares during the period. Brevan Howard Capital Management LP bought a new position in Red Cat during the third quarter worth $19,739,000. Davidson Kempner Capital Management LP bought a new position in Red Cat during the third quarter worth $17,286,000. Finally, Geode Capital Management LLC lifted its holdings in Red Cat by 142.7% in the second quarter. Geode Capital Management LLC now owns 1,656,720 shares of the company’s stock valued at $12,063,000 after buying an additional 974,121 shares during the period. 37.97% of the stock is currently owned by 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.