Red Cat (NASDAQ:RCAT) Shares Gap Up – What’s Next?

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) gapped up before the market opened on Wednesday . The stock had previously closed at $9.77, but opened at $10.25. Red Cat shares last traded at $10.4030, with a volume of 6,174,692 shares trading hands.

Analyst Upgrades and Downgrades

Several equities research analysts have recently issued reports on RCAT shares. Clear Str upgraded shares of Red Cat to a “strong-buy” rating in a report on Wednesday, April 29th. Weiss Ratings reissued a “sell (d-)” rating on shares of Red Cat in a research report on Tuesday, April 21st. UBS Group assumed coverage on shares of Red Cat in a research note on Wednesday. They issued a “buy” rating for the company. Wall Street Zen cut shares of Red Cat from a “hold” rating to a “sell” rating in a research note on Saturday, May 2nd. Finally, Needham & Company LLC raised their price objective on shares of Red Cat from $16.00 to $20.00 and gave the stock a “buy” rating in a research note on Thursday, March 19th. Two research analysts have rated the stock with a Strong Buy rating, three have given a Buy rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Buy” and an average target price of $20.50.

Red Cat Stock Performance

The stock’s 50 day simple moving average is $12.15 and its two-hundred day simple moving average is $11.35. The firm has a market capitalization of $1.30 billion, a PE ratio of -15.12 and a beta of 1.21.

Red Cat (NASDAQ:RCAT) last announced its quarterly earnings data on Thursday, May 7th. The company reported ($0.22) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.12) by ($0.10). Red Cat had a negative net margin of 138.36% and a negative return on equity of 35.86%. The firm had revenue of $15.47 million during the quarter, compared to analysts’ expectations of $17.63 million. Red Cat’s quarterly revenue was up 849.1% compared to the same quarter last year. Equities research analysts expect that Red Cat Holdings, Inc. will post -0.65 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Fifth Third Bancorp purchased a new stake in shares of Red Cat in the 1st quarter valued at approximately $33,000. IFP Advisors Inc increased its stake in Red Cat by 181.1% in the third quarter. IFP Advisors Inc now owns 2,670 shares of the company’s stock valued at $28,000 after purchasing an additional 1,720 shares during the last quarter. NFSG Corp lifted its position in shares of Red Cat by 200.0% during the 1st quarter. NFSG Corp now owns 3,000 shares of the company’s stock worth $39,000 after buying an additional 2,000 shares during the last quarter. PNC Financial Services Group Inc. boosted its holdings in shares of Red Cat by 294.6% in the 1st quarter. PNC Financial Services Group Inc. now owns 3,042 shares of the company’s stock valued at $40,000 after buying an additional 2,271 shares in the last quarter. Finally, Montag A & Associates Inc. grew its position in shares of Red Cat by 552.0% in the 3rd quarter. Montag A & Associates Inc. now owns 3,260 shares of the company’s stock valued at $34,000 after buying an additional 2,760 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.