Red Cat (NASDAQ:RCAT) Sees Large Volume Increase – Should You Buy?

Red Cat Holdings, Inc. (NASDAQ:RCAT) shares saw strong trading volume on Thursday . 20,887,825 shares were traded during mid-day trading, an increase of 45% from the previous session’s volume of 14,435,181 shares.The stock last traded at $13.0970 and had previously closed at $10.67.

Wall Street Analyst Weigh In

A number of equities research analysts have recently commented on the company. Needham & Company LLC lifted their price objective on Red Cat from $16.00 to $20.00 and gave the company a “buy” rating in a research report on Thursday, March 19th. HC Wainwright assumed coverage on Red Cat in a research report on Wednesday. They issued a “buy” rating and a $20.00 price objective for the company. UBS Group assumed coverage on Red Cat in a research report on Wednesday. They issued a “buy” rating for the company. Wall Street Zen downgraded Red Cat from a “hold” rating to a “sell” rating in a research report on Saturday, May 2nd. Finally, Clear Str raised shares of Red Cat to a “strong-buy” rating in a research note on Wednesday, April 29th. Two analysts have rated the stock with a Strong Buy rating, three have issued a Buy rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Buy” and a consensus target price of $20.50.

Red Cat Stock Performance

The firm has a market capitalization of $1.72 billion, a PE ratio of -19.82 and a beta of 1.21. The company’s fifty day moving average price is $12.05 and its two-hundred day moving average price is $11.36.

Red Cat (NASDAQ:RCAT) last announced its quarterly earnings data on Thursday, May 7th. The company reported ($0.22) earnings per share for the quarter, missing the consensus estimate of ($0.12) by ($0.10). The company had revenue of $15.47 million for the quarter, compared to analysts’ expectations of $17.63 million. Red Cat had a negative return on equity of 35.86% and a negative net margin of 138.36%.The company’s quarterly revenue was up 849.1% on a year-over-year basis. On average, equities analysts expect that Red Cat Holdings, Inc. will post -0.65 earnings per share for the current year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in RCAT. Bank of America Corp DE boosted its holdings in Red Cat by 407.0% in the fourth quarter. Bank of America Corp DE now owns 3,397 shares of the company’s stock valued at $44,000 after acquiring an additional 2,727 shares during the last quarter. Royal Bank of Canada boosted its holdings in Red Cat by 76.4% in the first quarter. Royal Bank of Canada now owns 57,800 shares of the company’s stock valued at $340,000 after acquiring an additional 25,031 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in Red Cat by 63.6% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 229,259 shares of the company’s stock valued at $1,348,000 after acquiring an additional 89,095 shares during the last quarter. Goldman Sachs Group Inc. boosted its holdings in Red Cat by 28.7% in the first quarter. Goldman Sachs Group Inc. now owns 266,099 shares of the company’s stock valued at $1,565,000 after acquiring an additional 59,334 shares during the last quarter. Finally, Cetera Investment Advisers acquired a new position in Red Cat in the second quarter valued at $97,000. Institutional investors and hedge funds own 37.97% of the company’s stock.

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.