Red Cat (NASDAQ:RCAT) Stock Price Up 10% - Here's Why

Key Points

• Shares jumped about 10% intraday to a high of $15.78 (last $15.67) on Tuesday, with roughly 12.0 million shares traded — about 29% below its average session volume.
• Analyst coverage is mixed but the MarketBeat consensus is a Buy with a $19.00 price target; notable recent calls include Northland at $22 and Needham raising its target to $16, while some firms maintain sell ratings.
• Red Cat has a $1.87 billion market cap and a negative trailing P/E; it missed last quarter's EPS estimate (-$0.16 vs. -$0.07) despite revenue topping estimates, and several institutional investors (Vanguard, Brevan Howard, Davidson Kempner) have recently increased positions, with institutions owning about 37.97%.

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report)'s share price shot up 10% during mid-day trading on Tuesday . The stock traded as high as $15.78 and last traded at $15.67. 12,005,902 shares changed hands during mid-day trading, a decline of 29% from the average session volume of 16,985,723 shares. The stock had previously closed at $14.25.

Wall Street Analyst Weigh In

RCAT has been the topic of a number of recent research reports. Northland Securities set a $22.00 target price on Red Cat in a report on Tuesday, January 20th. Weiss Ratings reissued a "sell (d-)" rating on shares of Red Cat in a research note on Thursday, January 22nd. Needham & Company LLC upped their price objective on shares of Red Cat from $12.00 to $16.00 and gave the company a "buy" rating in a research note on Tuesday, January 13th. Wall Street Zen cut shares of Red Cat from a "hold" rating to a "sell" rating in a report on Saturday, October 4th. Finally, LADENBURG THALM/SH SH upgraded shares of Red Cat to a "strong-buy" rating in a report on Thursday, December 18th. Two research analysts have rated the stock with a Strong Buy rating, one has assigned a Buy rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Buy" and a consensus price target of $19.00.

Red Cat Stock Performance

The stock has a market cap of $1.87 billion, a price-to-earnings ratio of -35.61 and a beta of 1.48. The company's 50 day simple moving average is $9.57 and its two-hundred day simple moving average is $9.99.

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

Hedge Funds Weigh In On Red Cat

A number of hedge funds have recently added to or reduced their stakes in RCAT. Brevan Howard Capital Management LP acquired a new stake in Red Cat in the third quarter valued at approximately $19,739,000. Vanguard Group Inc. raised its holdings in shares of Red Cat by 43.9% during the 3rd quarter. Vanguard Group Inc. now owns 5,506,377 shares of the company's stock valued at $56,991,000 after purchasing an additional 1,680,929 shares in the last quarter. Davidson Kempner Capital Management LP bought a new stake in Red Cat in the third quarter worth $17,286,000. Geode Capital Management LLC increased its position in Red Cat by 142.7% during the second quarter. Geode Capital Management LLC now owns 1,656,720 shares of the company's stock worth $12,063,000 after buying an additional 974,121 shares during the last quarter. Finally, Tudor Investment Corp ET AL boosted its stake in shares of Red Cat by 214.0% during the 3rd quarter. Tudor Investment Corp ET AL now owns 1,277,523 shares of the company's stock worth $13,222,000 after acquiring an additional 870,612 shares in 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.

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