Red Cat Target of Unusually High Options Trading (NASDAQ:RCAT)

Red Cat Holdings, Inc. (NASDAQ:RCAT) saw unusually large options trading on Monday. Investors bought 36,890 call options on the stock. This represents an increase of 58% compared to the average daily volume of 23,414 call options.

Red Cat Price Performance

Shares of Red Cat stock opened at $10.90 on Tuesday. Red Cat has a 1-year low of $4.58 and a 1-year high of $16.70. The business’s fifty day moving average price is $8.31 and its two-hundred day moving average price is $9.30. The company has a market capitalization of $1.30 billion, a P/E ratio of -24.77 and a beta of 1.48.

Red Cat (NASDAQ:RCAT) last issued its quarterly earnings results on Thursday, November 13th. The company reported ($0.16) earnings per share 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 the consensus estimate of $8.18 million. On average, research analysts expect that Red Cat will post -0.5 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

RCAT has been the subject of a number of research reports. Wall Street Zen lowered Red Cat from a “hold” rating to a “sell” rating in a research report on Saturday, October 4th. Needham & Company LLC decreased their target price on shares of Red Cat from $17.00 to $12.00 and set a “buy” rating for the company in a research note on Friday, November 14th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Red Cat in a report on Wednesday, October 8th. Finally, LADENBURG THALM/SH SH raised shares of Red Cat to a “strong-buy” rating in a research note on Thursday, December 18th. Two equities research analysts have rated the stock with a Strong Buy rating, two have issued a Buy rating and one has assigned a Sell rating to the company. According to MarketBeat, Red Cat presently has a consensus rating of “Buy” and an average target price of $14.00.

Hedge Funds Weigh In On Red Cat

Several hedge funds have recently made changes to their positions in RCAT. Vanguard Group Inc. grew 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 buying an additional 1,680,929 shares during the last quarter. AWM Investment Company Inc. grew its holdings 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 worth $14,834,000 after acquiring an additional 269,942 shares during the last quarter. Brevan Howard Capital Management LP acquired a new stake in shares of Red Cat during the third quarter worth $19,739,000. Davidson Kempner Capital Management LP acquired a new stake in shares of Red Cat during the third quarter worth $17,286,000. Finally, Geode Capital Management LLC lifted its holdings in shares of Red Cat by 142.7% during the second quarter. Geode Capital Management LLC now owns 1,656,720 shares of the company’s stock valued at $12,063,000 after purchasing an additional 974,121 shares during the last quarter. 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.