Red Cat (NASDAQ:RCAT) Shares Gap Up – Still a Buy?

Red Cat Holdings, Inc. (NASDAQ:RCAT) gapped up prior to trading on Friday . The stock had previously closed at $11.31, but opened at $12.17. Red Cat shares last traded at $11.56, with a volume of 1,500,221 shares changing hands.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on the company. LADENBURG THALM/SH SH raised Red Cat to a “strong-buy” rating in a research note on Thursday, December 18th. Weiss Ratings restated a “sell (d-)” rating on shares of Red Cat in a report on Thursday, January 22nd. Needham & Company LLC boosted their price target on shares of Red Cat from $12.00 to $16.00 and gave the stock a “buy” rating in a research note on Tuesday, January 13th. Finally, Northland Securities set a $22.00 price target on shares of 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 issued a Sell rating to the stock. Based on data from MarketBeat, Red Cat currently has an average rating of “Buy” and a consensus price target of $19.00.

Red Cat Trading Up 11.7%

The company has a market cap of $1.51 billion, a PE ratio of -28.70 and a beta of 1.50. The company has a fifty day simple moving average of $10.82 and a two-hundred day simple moving average of $10.21.

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

Institutional Investors Weigh In On Red Cat

A number of large investors have recently modified their holdings of the company. Vanguard Group Inc. lifted its position in shares of Red Cat by 9.0% during the 4th 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 last quarter. AWM Investment Company Inc. raised its stake in Red Cat by 15.3% in 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 in the last quarter. Brevan Howard Capital Management LP purchased a new stake in Red Cat during the 3rd quarter worth about $19,739,000. Davidson Kempner Capital Management LP acquired a new position in shares of Red Cat during the 3rd quarter worth about $17,286,000. Finally, Geode Capital Management LLC increased its holdings in shares of Red Cat by 142.7% in the 2nd 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 last quarter. 37.97% of the stock is owned by hedge funds and other institutional investors.

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.