Red Cat (NASDAQ:RCAT) Shares Gap Up – Should You Buy?

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s share price gapped up before the market opened on Monday . The stock had previously closed at $9.28, but opened at $9.81. Red Cat shares last traded at $9.6940, with a volume of 1,969,495 shares.

Analysts Set New Price Targets

RCAT has been the topic of several research reports. HC Wainwright initiated coverage on Red Cat in a research report on Wednesday, May 27th. They issued a “buy” rating and a $20.00 price objective on the stock. Weiss Ratings reiterated a “sell (d-)” rating on shares of Red Cat in a research note on Tuesday, April 21st. Needham & Company LLC boosted their price target on Red Cat from $16.00 to $20.00 and gave the stock a “buy” rating in a research report on Thursday, March 19th. Roth Mkm initiated coverage on Red Cat in a report on Monday, June 1st. They issued a “buy” rating and a $25.00 price target for the company. Finally, Clear Str upgraded shares of Red Cat to a “strong-buy” rating in a research note on Wednesday, April 29th. Two equities research analysts have rated the stock with a Strong Buy rating, four have given a Buy rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Buy” and an average price target of $21.40.

Red Cat Trading Up 6.8%

The company’s 50-day moving average price is $11.31 and its two-hundred day moving average price is $12.04. The company has a market cap of $1.22 billion, a P/E ratio of -14.11 and a beta of 1.23.

Red Cat (NASDAQ:RCAT) last issued its earnings results on Thursday, May 7th. The company reported ($0.22) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.12) by ($0.10). Red Cat had a negative return on equity of 35.86% and a negative net margin of 138.36%.The business had revenue of $15.47 million during the quarter, compared to the consensus estimate of $17.63 million. Red Cat’s quarterly revenue was up 849.1% compared to the same quarter last year. As a group, analysts anticipate that Red Cat Holdings, Inc. will post -0.68 earnings per share for the current year.

Insider Buying and Selling at Red Cat

In other Red Cat news, Director Paul Funk II sold 165,028 shares of Red Cat stock in a transaction that occurred on Thursday, June 11th. The shares were sold at an average price of $11.50, for a total value of $1,897,822.00. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Company insiders own 12.50% of the company’s stock.

Hedge Funds Weigh In On Red Cat

A number of hedge funds and other institutional investors have recently modified their holdings of RCAT. Arizona State Retirement System raised its holdings in shares of Red Cat by 3.0% during the fourth quarter. Arizona State Retirement System now owns 29,311 shares of the company’s stock valued at $232,000 after acquiring an additional 855 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd. lifted its stake in Red Cat by 0.7% in the 4th quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 167,084 shares of the company’s stock worth $1,325,000 after acquiring an additional 1,147 shares in the last quarter. Advisory Services Network LLC boosted its position in Red Cat by 5.3% during the 3rd quarter. Advisory Services Network LLC now owns 30,200 shares of the company’s stock worth $313,000 after acquiring an additional 1,507 shares during the period. Western Wealth Management LLC increased its stake in Red Cat by 4.5% in the 1st quarter. Western Wealth Management LLC now owns 36,722 shares of the company’s stock valued at $481,000 after buying an additional 1,570 shares during the period. Finally, IFP Advisors Inc boosted its stake in shares of Red Cat by 181.1% during the 3rd quarter. IFP Advisors Inc now owns 2,670 shares of the company’s stock valued at $28,000 after buying an additional 1,720 shares during the period. Institutional investors and hedge funds own 37.97% of the company’s stock.

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.