Red Cat (NASDAQ:RCAT) Stock Price Up 3.7% - Should You Buy?

Key Points

• Shares of Red Cat (RCAT) were up 3.7% midday, trading around $12.37 (intraday high $12.48) on about 7.91 million shares, roughly 51% below its average daily volume.
• Analysts are mixed—two Buy ratings and one Sell yield a consensus Hold with a consensus target of $20.67, and individual price targets ranging up to about $22.
• Recent results showed a revenue beat ($26.24M vs. $24.50M) but an EPS miss (loss of $0.17 vs. -$0.14 expected), with weak profitability metrics (negative net margin and ROE); the company has a market cap of about $1.5B and a negative P/E.

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report)'s share price rose 3.7% during mid-day trading on Friday . The company traded as high as $12.48 and last traded at $12.37. Approximately 7,912,370 shares were traded during mid-day trading, a decline of 51% from the average daily volume of 16,231,337 shares. The stock had previously closed at $11.93.

Wall Street Analysts Forecast Growth

RCAT has been the topic of a number of recent analyst reports. 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 price target on shares of Red Cat from $15.00 to $20.00 and gave the stock a "buy" rating in a report on Tuesday, March 3rd. 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. Northland Securities set a $22.00 price target on shares of Red Cat in a report on Tuesday, January 20th. Finally, Weiss Ratings reissued a "sell (d-)" rating on shares of Red Cat in a report on Thursday, January 22nd. Two research analysts have rated the stock with a Buy rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, Red Cat currently has a consensus rating of "Hold" and a consensus target price of $20.67.

Red Cat Trading Up 3.7%

The company has a market capitalization of $1.50 billion, a P/E ratio of -16.49 and a beta of 1.46. The business's fifty day moving average price is $13.54 and its 200-day moving average price is $11.51.

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

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the business. 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. Montag A & Associates Inc. grew its position in Red Cat by 552.0% during the third quarter. Montag A & Associates Inc. now owns 3,260 shares of the company's stock valued at $34,000 after acquiring an additional 2,760 shares during the last quarter. Bank of America Corp DE grew its position in Red Cat by 407.0% during the fourth quarter. Bank of America Corp DE now owns 3,397 shares of the company's stock valued at $44,000 after acquiring an additional 2,727 shares during the last quarter. Global Retirement Partners LLC bought a new position in Red Cat during the third quarter valued at approximately $36,000. Finally, Penserra Capital Management LLC bought a new position in Red Cat during the third quarter valued at approximately $46,000. 37.97% of the stock is currently owned by institutional investors.

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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