Red Cat (NASDAQ:RCAT) Shares Gap Up - Should You Buy?

Key Points

• Red Cat Holdings, Inc. (NASDAQ:RCAT) saw its stock price jump from $11.52 to $12.37 before closing at $13.78, with a volume of over 14 million shares traded.
• Analysts have mixed ratings on RCAT, with Weiss Ratings maintaining a "sell" rating, while Needham & Company initiated coverage with a "buy" rating and a price target of $17.00.
• Institutional investors hold 37.97% of Red Cat's stock, with notable purchases and increases from firms like Captrust Financial Advisors and Marex Group plc in the recent quarter.

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) gapped up before the market opened on Friday . The stock had previously closed at $11.52, but opened at $12.37. Red Cat shares last traded at $13.78, with a volume of 14,003,748 shares trading hands.

Analyst Ratings Changes

RCAT has been the topic of several analyst reports. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Red Cat in a research report on Saturday, September 27th. Northland Securities set a $16.00 price objective on Red Cat in a research note on Friday, August 15th. Wall Street Zen raised Red Cat from a "sell" rating to a "hold" rating in a report on Saturday, July 26th. Finally, Needham & Company LLC initiated coverage on shares of Red Cat in a research report on Friday. They set a "buy" rating and a $17.00 price objective for the company. One equities research analyst has rated the stock with a Strong Buy rating and two have given a Buy rating to the company's stock. Based on data from MarketBeat.com, Red Cat presently has a consensus rating of "Buy" and a consensus target price of $16.50.

Red Cat Stock Up 11.9%

The firm has a 50 day simple moving average of $9.57 and a two-hundred day simple moving average of $7.80. The stock has a market capitalization of $1.52 billion, a P/E ratio of -23.87 and a beta of 1.45.

Insider Transactions at Red Cat

In other news, Director Christopher R. Moe sold 30,000 shares of the stock in a transaction dated Thursday, September 11th. The shares were sold at an average price of $10.11, for a total value of $303,300.00. Following the completion of the transaction, the director owned 73,073 shares of the company's stock, valued at approximately $738,768.03. This represents a 29.11% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders sold a total of 86,833 shares of company stock valued at $861,560 in the last quarter. Insiders own 15.30% of the company's stock.

Institutional Trading of Red Cat

A number of institutional investors and hedge funds have recently bought and sold shares of RCAT. Marex Group plc bought a new stake in shares of Red Cat in the 2nd quarter valued at about $333,000. Captrust Financial Advisors lifted its stake in shares of Red Cat by 30.9% in the second quarter. Captrust Financial Advisors now owns 820,279 shares of the company's stock worth $5,972,000 after acquiring an additional 193,853 shares during the period. Tidal Investments LLC increased its position in Red Cat by 64.1% during the 2nd quarter. Tidal Investments LLC now owns 34,916 shares of the company's stock valued at $254,000 after purchasing an additional 13,643 shares during the period. Riggs Asset Managment Co. Inc. acquired a new stake in Red Cat during the 2nd quarter valued at approximately $62,000. Finally, Oxford Asset Management LLP acquired a new position in shares of Red Cat in the 2nd quarter worth approximately $262,000. 37.97% of the stock is currently owned by institutional investors and hedge funds.

About Red Cat

Red Cat Holdings, Inc engages in the provision of various products, services, and solutions to the drone industry. The company operates through two segments: Enterprise and Consumer. It built infrastructure to manages drone fleets and fly, and provide services remotely, navigate confined industrial interior spaces and dangerous military environment.

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