Red Cat (NASDAQ:RCAT) Trading Up 10% – What’s Next?

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) shot up 10% on Tuesday . The company traded as high as $15.78 and last traded at $15.67. 12,005,902 shares traded hands during mid-day trading, a decline of 29% from the average session volume of 16,985,723 shares. The stock had previously closed at $14.25.

Analyst Ratings Changes

Several brokerages have commented on RCAT. LADENBURG THALM/SH SH upgraded Red Cat to a “strong-buy” rating in a report on Thursday, December 18th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Red Cat in a research note on Thursday, January 22nd. Needham & Company LLC lifted their target price on shares of Red Cat from $12.00 to $16.00 and gave the stock a “buy” rating in a report on Tuesday, January 13th. Wall Street Zen cut shares of Red Cat from a “hold” rating to a “sell” rating in a report on Saturday, October 4th. Finally, Northland Securities set a $22.00 price objective on Red Cat in a research report on Tuesday, January 20th. Two analysts have rated the stock with a Strong Buy rating, one has issued a Buy rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of “Buy” and a consensus target price of $19.00.

Red Cat Stock Performance

The firm’s 50-day simple moving average is $9.57 and its 200-day simple moving average is $9.99. The company has a market capitalization of $1.87 billion, a price-to-earnings ratio of -35.61 and a beta of 1.48.

Red Cat (NASDAQ:RCAT) last announced its quarterly earnings data on Thursday, November 13th. The company reported ($0.16) EPS for the quarter, missing analysts’ consensus estimates of ($0.07) by ($0.09). The firm had revenue of $9.65 million for the quarter, compared to analyst estimates of $8.18 million. Equities research analysts forecast that Red Cat Holdings, Inc. will post -0.5 earnings per share for the current year.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Vanguard Group Inc. lifted its position in Red Cat by 43.9% in the third quarter. Vanguard Group Inc. now owns 5,506,377 shares of the company’s stock worth $56,991,000 after purchasing an additional 1,680,929 shares during the period. AWM Investment Company Inc. raised its stake in shares of Red Cat by 15.3% in the 2nd quarter. AWM Investment Company Inc. now owns 2,037,616 shares of the company’s stock valued at $14,834,000 after buying an additional 269,942 shares in the last quarter. Brevan Howard Capital Management LP bought a new position in shares of Red Cat during the 3rd quarter worth about $19,739,000. Davidson Kempner Capital Management LP acquired a new stake in shares of Red Cat during the 3rd quarter valued at about $17,286,000. Finally, Geode Capital Management LLC increased its stake in Red Cat by 142.7% in the second quarter. Geode Capital Management LLC now owns 1,656,720 shares of the company’s stock valued at $12,063,000 after acquiring an additional 974,121 shares during the period. 37.97% of the stock is currently 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.