Red Cat (NASDAQ:RCAT) Shares Gap Up – Time to Buy?

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s stock price gapped up before the market opened on Thursday . The stock had previously closed at $8.32, but opened at $8.71. Red Cat shares last traded at $8.48, with a volume of 2,432,199 shares.

Analysts Set New Price Targets

RCAT has been the topic of several research reports. Roth Capital began coverage on Red Cat in a research report on Monday, June 1st. They issued a “buy” rating and a $25.00 price objective on the stock. Piper Sandler began coverage on shares of Red Cat in a report on Wednesday. They set a “neutral” rating and a $9.00 price objective for the company. Wall Street Zen lowered Red Cat from a “sell” rating to a “strong sell” rating in a research report on Saturday, July 18th. LADENBURG THALM/SH SH upgraded shares of Red Cat to a “strong-buy” rating in a research note on Wednesday, May 6th. Finally, Needham & Company LLC dropped their target price on shares of Red Cat from $20.00 to $15.00 and set a “buy” rating on the stock in a report on Friday, August 7th. Two equities research analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Red Cat has a consensus rating of “Moderate Buy” and an average price target of $18.00.

Red Cat Trading Up 1.9%

The firm has a market cap of $1.04 billion, a price-to-earnings ratio of -10.46 and a beta of 1.35. The stock has a 50-day moving average of $9.00 and a 200-day moving average of $11.25.

Red Cat (NASDAQ:RCAT) last issued its earnings results on Thursday, August 6th. The company reported ($0.26) earnings per share for the quarter, missing the consensus estimate of ($0.21) by ($0.05). The company had revenue of $20.20 million during the quarter, compared to analyst estimates of $22.65 million. Red Cat had a negative return on equity of 32.25% and a negative net margin of 136.26%. As a group, research analysts expect that Red Cat Holdings, Inc. will post -0.78 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Red Cat news, Director Christopher R. Moe sold 20,000 shares of the company’s stock in a transaction dated Tuesday, August 11th. The shares were sold at an average price of $10.51, for a total value of $210,200.00. Following the completion of the transaction, the director owned 200,502 shares in the company, valued at approximately $2,107,276.02. This represents a 9.07% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Nicholas Reyland Liuzza, Jr. sold 55,000 shares of the company’s stock in a transaction dated Tuesday, August 11th. The stock was sold at an average price of $10.63, for a total transaction of $584,650.00. Following the completion of the transaction, the director owned 489,874 shares of the company’s stock, valued at approximately $5,207,360.62. This trade represents a 10.09% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 240,028 shares of company stock valued at $2,692,672 in the last quarter. Company insiders own 12.50% of the company’s stock.

Institutional Investors Weigh In On Red Cat

A number of hedge funds have recently made changes to their positions in RCAT. Arizona State Retirement System grew its holdings in Red Cat by 3.0% in the 4th quarter. Arizona State Retirement System now owns 29,311 shares of the company’s stock worth $232,000 after buying an additional 855 shares in the last quarter. CoreCap Advisors LLC boosted its position in Red Cat by 13.8% during the 2nd quarter. CoreCap Advisors LLC now owns 9,039 shares of the company’s stock worth $96,000 after acquiring an additional 1,095 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd. grew its stake in shares of Red Cat by 0.7% in the fourth quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 167,084 shares of the company’s stock worth $1,325,000 after purchasing an additional 1,147 shares in the last quarter. Advisory Services Network LLC grew its stake in shares of Red Cat by 5.3% in the third quarter. Advisory Services Network LLC now owns 30,200 shares of the company’s stock worth $313,000 after purchasing an additional 1,507 shares in the last quarter. Finally, Western Wealth Management LLC increased its holdings in shares of Red Cat by 4.5% during the first quarter. Western Wealth Management LLC now owns 36,722 shares of the company’s stock valued at $481,000 after purchasing an additional 1,570 shares during the period. Institutional investors 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.