Red Cat (NASDAQ:RCAT) Stock Price Up 6% – Should You Buy?

Red Cat Holdings, Inc. (NASDAQ:RCAT) shares rose 6% during mid-day trading on Wednesday . The stock traded as high as $12.74 and last traded at $12.08. Approximately 8,170,260 shares were traded during mid-day trading, a decline of 40% from the average daily volume of 13,599,617 shares. The stock had previously closed at $11.40.

Analyst Upgrades and Downgrades

A number of equities research analysts recently issued reports on the company. LADENBURG THALM/SH SH raised Red Cat to a “strong-buy” rating in a research report on Thursday, December 18th. Northland Securities set a $22.00 target price on Red Cat in a research note on Tuesday, January 20th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Red Cat in a research note on Thursday, January 22nd. Finally, 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 research report on Tuesday, January 13th. Two investment 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’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Buy” and a consensus price target of $19.00.

Red Cat Trading Up 6.0%

The company has a market cap of $1.44 billion, a price-to-earnings ratio of -27.45 and a beta of 1.50. The firm’s 50-day moving average price is $11.40 and its 200 day moving average price is $10.37.

Institutional Investors Weigh In On Red Cat

Hedge funds and other institutional investors have recently modified their holdings of the company. State Street Corp lifted its holdings in Red Cat by 136.4% during the fourth quarter. State Street Corp now owns 6,612,153 shares of the company’s stock worth $52,434,000 after acquiring an additional 3,815,310 shares during the period. Vanguard Group Inc. boosted its holdings in shares of Red Cat by 9.0% in the 4th quarter. Vanguard Group Inc. now owns 6,000,037 shares of the company’s stock worth $47,580,000 after buying an additional 493,660 shares during the last quarter. Geode Capital Management LLC grew its position in Red Cat by 13.4% during the fourth quarter. Geode Capital Management LLC now owns 2,520,524 shares of the company’s stock valued at $19,991,000 after buying an additional 297,967 shares during the period. AWM Investment Company Inc. grew its position in Red Cat by 15.3% during the second 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 during the period. Finally, Brevan Howard Capital Management LP purchased a new stake in Red Cat during the third quarter worth about $19,739,000. Institutional investors 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.