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

Key Points

• RCAT gapped up premarket from $15.36 to $16.20 but later last traded at $14.56 on heavy volume (10.47M shares) and is reported down about 7.3%.
• Analyst sentiment is mixed but tilted positive with a consensus rating of "Moderate Buy" and a consensus price target of $19.33; individual targets range roughly from $16 to $22 while one firm issues a sell.
• Red Cat is a UAS/robotics company with a $1.7B market cap and a negative P/E (-32.36); the stock trades above its 50‑day ($12.73) and 200‑day ($10.75) averages and the company recently reported a large revenue surge after entering mass production.

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) gapped up prior to trading on Monday . The stock had previously closed at $15.36, but opened at $16.20. Red Cat shares last traded at $14.56, with a volume of 10,474,062 shares changing hands.

Analysts Set New Price Targets

Several brokerages have recently issued reports on RCAT. Weiss Ratings reissued a "sell (d-)" rating on shares of Red Cat in a research report on Thursday, January 22nd. Northland Securities set a $22.00 price target on shares of Red Cat in a research report on Tuesday, January 20th. Needham & Company LLC reaffirmed a "buy" rating and set a $16.00 price objective on shares of Red Cat in a research report on Monday, March 2nd. Finally, LADENBURG THALM/SH SH lifted their target price on Red Cat from $15.00 to $20.00 and gave the company a "buy" rating in a report on Tuesday, March 3rd. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and one has issued a Sell rating to the company's stock. According to MarketBeat, Red Cat currently has a consensus rating of "Moderate Buy" and a consensus price target of $19.33.

Red Cat Stock Down 7.3%

The company's fifty day moving average is $12.73 and its two-hundred day moving average is $10.75. The stock has a market cap of $1.70 billion, a price-to-earnings ratio of -32.36 and a beta of 1.53.

Institutional Investors Weigh In On Red Cat

Hedge funds and other institutional investors have recently modified their holdings of the company. IFP Advisors Inc grew its stake in shares of Red Cat by 181.1% during the third quarter. IFP Advisors Inc now owns 2,670 shares of the company's stock worth $28,000 after purchasing an additional 1,720 shares in the last quarter. Montag A & Associates Inc. lifted its holdings in Red Cat by 552.0% during the 3rd quarter. Montag A & Associates Inc. now owns 3,260 shares of the company's stock worth $34,000 after buying an additional 2,760 shares during the last quarter. California State Teachers Retirement System acquired a new position in shares of Red Cat during the 2nd quarter worth about $34,000. Global Retirement Partners LLC purchased a new position in shares of Red Cat in the 3rd quarter valued at about $36,000. Finally, N.E.W. Advisory Services LLC raised its position in shares of Red Cat by 163.5% during the 4th quarter. N.E.W. Advisory Services LLC now owns 5,356 shares of the company's stock worth $42,000 after acquiring an additional 3,323 shares in the last quarter. 37.97% of the stock is currently owned by institutional investors and hedge funds.

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.

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