Red Cat (NASDAQ:RCAT) Trading Up 6.8% – Time to Buy?

Red Cat Holdings, Inc. (NASDAQ:RCAT) shares rose 6.8% on Tuesday . The stock traded as high as $11.11 and last traded at $11.0210. Approximately 4,199,962 shares traded hands during mid-day trading, a decline of 72% from the average daily volume of 15,010,750 shares. The stock had previously closed at $10.32.

Analysts Set New Price Targets

A number of analysts have recently issued reports on the stock. LADENBURG THALM/SH SH upgraded shares of Red Cat to a “strong-buy” rating in a research note on Wednesday, May 6th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Red Cat in a research note on Tuesday, April 21st. Roth Mkm began coverage on shares of Red Cat in a report on Monday, June 1st. They issued a “buy” rating and a $25.00 price target on the stock. Needham & Company LLC upped their target price on Red Cat from $16.00 to $20.00 and gave the company a “buy” rating in a research report on Thursday, March 19th. Finally, Clear Str upgraded Red Cat to a “strong-buy” rating in a research note on Wednesday, April 29th. Two investment analysts have rated the stock with a Strong Buy rating, four have issued a Buy rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Buy” and an average price target of $21.40.

Red Cat Price Performance

The stock’s 50-day moving average price is $11.16 and its 200-day moving average price is $12.08. The company has a market cap of $1.29 billion, a P/E ratio of -15.07 and a beta of 1.29.

Red Cat (NASDAQ:RCAT) last released its quarterly earnings results 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. The business’s revenue was up 849.1% compared to the same quarter last year. As a group, analysts expect that Red Cat Holdings, Inc. will post -0.68 EPS for the current fiscal year.

Insider Activity

In other news, Director Paul Funk II sold 165,028 shares of the firm’s stock in a transaction that occurred on Thursday, June 11th. The shares were sold at an average price of $11.50, for a total transaction of $1,897,822.00. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. 12.50% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Red Cat

Large investors have recently added to or reduced their stakes in the stock. Brevan Howard Capital Management LP bought a new stake in shares of Red Cat during the 3rd quarter valued at $19,739,000. Tudor Investment Corp ET AL increased its position in shares of Red Cat by 214.0% in the third quarter. Tudor Investment Corp ET AL now owns 1,277,523 shares of the company’s stock worth $13,222,000 after purchasing an additional 870,612 shares during the period. EVR Research LP acquired a new position in Red Cat in the fourth quarter valued at about $1,705,000. Caitong International Asset Management Co. Ltd raised its stake in Red Cat by 1,825.1% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 54,152 shares of the company’s stock valued at $429,000 after purchasing an additional 51,339 shares in the last quarter. Finally, Vanguard Group Inc. lifted its position in Red Cat by 9.0% during the fourth quarter. Vanguard Group Inc. now owns 6,000,037 shares of the company’s stock worth $47,580,000 after purchasing an additional 493,660 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.