Red Cat (NASDAQ:RCAT) Shares Gap Up – Time to Buy?

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) gapped up before the market opened 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 changing hands.

Wall Street Analysts Forecast Growth

Several brokerages recently weighed in on RCAT. Needham & Company LLC lifted their price target on Red Cat from $16.00 to $20.00 and gave the company a “buy” rating in a research report on Thursday, March 19th. Northland Securities set a $22.00 price target on Red Cat in a research report on Tuesday, January 20th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Red Cat in a research report on Tuesday, April 21st. Clear Str upgraded Red Cat to a “strong-buy” rating in a research report on Wednesday, April 29th. Finally, LADENBURG THALM/SH SH upgraded Red Cat to a “strong-buy” rating in a research report on Wednesday, May 6th. Two investment analysts have rated the stock with a Strong Buy rating, one has assigned a Buy rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Buy” and an average target price of $20.67.

Red Cat Price Performance

The firm has a fifty day simple moving average of $12.76 and a 200 day simple moving average of $11.38. The company has a market capitalization of $1.09 billion, a price-to-earnings ratio of -12.69 and a beta of 1.21.

Red Cat (NASDAQ:RCAT) last issued its quarterly earnings data on Thursday, May 7th. The company reported ($0.22) 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 business had revenue of $15.47 million during the quarter, compared to analyst estimates of $17.63 million. Red Cat’s quarterly revenue was up 849.1% compared to the same quarter last year. Research analysts predict that Red Cat Holdings, Inc. will post -0.65 EPS for the current year.

Institutional Trading of Red Cat

Institutional investors have recently bought and sold shares of the business. Fifth Third Bancorp acquired a new stake in Red Cat in the first quarter valued at approximately $33,000. IFP Advisors Inc grew its holdings in Red Cat by 181.1% in the third quarter. IFP Advisors Inc now owns 2,670 shares of the company’s stock valued at $28,000 after purchasing an additional 1,720 shares during the period. NFSG Corp grew its holdings in Red Cat by 200.0% in the first quarter. NFSG Corp now owns 3,000 shares of the company’s stock valued at $39,000 after purchasing an additional 2,000 shares during the period. PNC Financial Services Group Inc. grew its holdings in Red Cat by 294.6% in the first quarter. PNC Financial Services Group Inc. now owns 3,042 shares of the company’s stock valued at $40,000 after purchasing an additional 2,271 shares during the period. Finally, Montag A & Associates Inc. grew its holdings in Red Cat by 552.0% in the third quarter. Montag A & Associates Inc. now owns 3,260 shares of the company’s stock valued at $34,000 after purchasing an additional 2,760 shares during the period. 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.