Red Cat (NASDAQ:RCAT) Stock Price Up 3.1% - What's Next?

Key Points

• Red Cat stock was up 3.1% midday, trading at about $13.03 on roughly 7.66 million shares, which is a 52% decline from its average daily volume.
• Analyst sentiment is mixed: the consensus is a Hold with an average price target of $20.67 (two Buys and one Sell), while some firms have raised targets to the $20–$22 range.
• In the latest quarter Red Cat reported an EPS of −$0.17 (missing estimates) but revenue of $26.24M (beating expectations); the company remains unprofitable with a negative net margin (~177%) and a market cap of about $1.58B.

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report)'s stock price was up 3.1% during mid-day trading on Wednesday . The company traded as high as $13.06 and last traded at $13.03. Approximately 7,662,919 shares were traded during mid-day trading, a decline of 52% from the average daily volume of 15,889,408 shares. The stock had previously closed at $12.64.

Wall Street Analyst Weigh In

RCAT has been the topic of several research reports. Weiss Ratings restated a "sell (d-)" rating on shares of Red Cat in a research note on Thursday, January 22nd. Wall Street Zen raised shares of Red Cat from a "sell" rating to a "hold" rating in a report on Saturday, March 21st. LADENBURG THALM/SH SH increased their target price on Red Cat from $15.00 to $20.00 and gave the stock a "buy" rating in a research report on Tuesday, March 3rd. Northland Securities set a $22.00 price target on Red Cat in a research report on Tuesday, January 20th. Finally, Needham & Company LLC increased their price target on shares of Red Cat from $16.00 to $20.00 and gave the stock a "buy" rating in a report on Thursday, March 19th. Two investment analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $20.67.

Red Cat Stock Up 3.1%

The firm has a market capitalization of $1.58 billion, a PE ratio of -17.37 and a beta of 1.46. The company has a 50-day moving average of $13.47 and a 200 day moving average of $11.56.

Red Cat (NASDAQ:RCAT - Get Free Report) last issued its quarterly earnings data on Wednesday, March 18th. The company reported ($0.17) EPS for the quarter, missing the consensus estimate of ($0.14) by ($0.03). The business had revenue of $26.24 million for the quarter, compared to analysts' expectations of $24.50 million. Red Cat had a negative return on equity of 38.86% and a negative net margin of 176.96%. As a group, equities analysts anticipate that Red Cat Holdings, Inc. will post -0.5 EPS for the current fiscal year.

Hedge Funds Weigh In On Red Cat

Institutional investors have recently made changes to their positions in the stock. Arizona State Retirement System lifted its holdings in shares of Red Cat by 3.0% during the 4th quarter. Arizona State Retirement System now owns 29,311 shares of the company's stock worth $232,000 after acquiring an additional 855 shares during the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. lifted its position in Red Cat by 0.7% in the 4th quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 167,084 shares of the company's stock worth $1,325,000 after buying an additional 1,147 shares during the last quarter. Advisory Services Network LLC boosted its stake in 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 buying an additional 1,507 shares in the last quarter. AlphaQuest LLC grew its position in Red Cat by 17.4% during the third quarter. AlphaQuest LLC now owns 10,839 shares of the company's stock valued at $112,000 after acquiring an additional 1,608 shares during the last quarter. Finally, IFP Advisors Inc grew its position in Red Cat by 181.1% during the third quarter. IFP Advisors Inc now owns 2,670 shares of the company's stock valued at $28,000 after acquiring an additional 1,720 shares during the last quarter. 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.

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