Red Cat (NASDAQ:RCAT) Stock Price Up 4% - Should You Buy?

Key Points

• Up 4% intraday — RCAT traded as high as $15.67 and last at $14.67 on volume of ~22.6M shares (about +41% vs. average), and is trading above its 50‑day ($12.85) and 200‑day ($10.78) moving averages.
• Analyst view is mixed but tilted positive: three Buys and one Sell produce an average rating of "Moderate Buy" with an average target of $19.33 (individual targets range roughly $16–$22 and some firms recently raised targets).
• Business and fundamentals: Red Cat is a defense/autonomy holding focused on UAS and sensing, has a market cap of about $1.75 billion and a negative P/E (-33.34), and has reported a reported revenue surge (~1,800%) after moving into mass production — a potential catalyst but earnings remain negative.

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report)'s share price rose 4% during mid-day trading on Tuesday . The stock traded as high as $15.67 and last traded at $14.67. Approximately 22,610,097 shares were traded during mid-day trading, an increase of 41% from the average daily volume of 15,985,127 shares. The stock had previously closed at $14.10.

Analyst Ratings Changes

Several brokerages have recently commented on RCAT. Needham & Company LLC restated a "buy" rating and set a $16.00 price target on shares of Red Cat in a research note on Monday, March 2nd. Northland Securities set a $22.00 price target on shares of Red Cat in a research report on Tuesday, January 20th. LADENBURG THALM/SH SH lifted their price objective on shares of Red Cat from $15.00 to $20.00 and gave the company a "buy" rating in a report on Tuesday, March 3rd. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of Red Cat in a report on Thursday, January 22nd. Three analysts have rated the stock with a Buy rating and one has given a Sell rating to the company. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $19.33.

Red Cat Trading Up 4.0%

The stock has a 50-day moving average price of $12.85 and a two-hundred day moving average price of $10.78. The stock has a market cap of $1.75 billion, a price-to-earnings ratio of -33.34 and a beta of 1.53.

Hedge Funds Weigh In On Red Cat

Hedge funds have recently modified their holdings of the stock. Caitong International Asset Management Co. Ltd raised its position in shares of Red Cat by 1,825.1% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 54,152 shares of the company's stock valued at $429,000 after purchasing an additional 51,339 shares during the last quarter. Virtu Financial LLC purchased a new stake in Red Cat during the 4th quarter worth approximately $196,000. Invesco Ltd. increased its stake in Red Cat by 36.3% during the 4th quarter. Invesco Ltd. now owns 237,038 shares of the company's stock valued at $1,880,000 after purchasing an additional 63,098 shares in the last quarter. Vident Advisory LLC acquired a new position in Red Cat during the 4th quarter valued at approximately $1,009,000. Finally, Janus Henderson Group PLC raised its holdings in shares of Red Cat by 29.5% in the fourth quarter. Janus Henderson Group PLC now owns 47,115 shares of the company's stock worth $374,000 after buying an additional 10,723 shares during 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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