Stock Traders Buy Large Volume of Red Cat Call Options (NASDAQ:RCAT)

Red Cat Holdings, Inc. (NASDAQ:RCAT) saw unusually large options trading activity on Wednesday. Investors purchased 28,353 call options on the stock. This represents an increase of 16% compared to the typical volume of 24,458 call options.

Institutional Trading of Red Cat

A number of institutional investors have recently modified their holdings of RCAT. Caitong International Asset Management Co. Ltd grew its holdings in shares of Red Cat by 1,825.1% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 54,152 shares of the company’s stock worth $429,000 after purchasing an additional 51,339 shares in the last quarter. Virtu Financial LLC bought a new stake in shares of Red Cat in the 4th quarter worth approximately $196,000. Invesco Ltd. boosted its stake in shares of Red Cat by 36.3% in the 4th quarter. Invesco Ltd. now owns 237,038 shares of the company’s stock valued at $1,880,000 after purchasing an additional 63,098 shares in the last quarter. Vident Advisory LLC purchased a new stake in shares of Red Cat in the 4th quarter valued at $1,009,000. Finally, Janus Henderson Group PLC grew its holdings in shares of Red Cat by 29.5% during the 4th quarter. Janus Henderson Group PLC now owns 47,115 shares of the company’s stock valued at $374,000 after purchasing an additional 10,723 shares during the last quarter. 37.97% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on RCAT. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Red Cat in a research report on Thursday, January 22nd. Needham & Company LLC reissued a “buy” rating and issued a $16.00 price objective on shares of Red Cat in a research note on Monday, March 2nd. LADENBURG THALM/SH SH boosted their price objective on Red Cat from $15.00 to $20.00 and gave the company a “buy” rating in a report on Tuesday, March 3rd. Finally, Northland Securities set a $22.00 target price on Red Cat in a research report on Tuesday, January 20th. Two research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $19.33.

Red Cat Stock Performance

NASDAQ:RCAT traded up $1.26 on Wednesday, hitting $18.23. The stock had a trading volume of 20,071,155 shares, compared to its average volume of 16,204,652. Red Cat has a 1 year low of $4.60 and a 1 year high of $18.78. The firm’s fifty day simple moving average is $13.67 and its two-hundred day simple moving average is $11.06. The stock has a market cap of $2.18 billion, a P/E ratio of -41.49 and a beta of 1.53.

About Red Cat

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.