Red Cat (NASDAQ:RCAT) Stock Price Up 6.1% - Here's Why

Key Points

• Red Cat (NASDAQ:RCAT) was up 6.1% intraday, trading as high as $16.88 on Tuesday with volume of 22.45 million shares—about 34% above its average session volume.
• Analysts have been raising targets (Northland $22, Ladenburg and Needham to $20), leaving a consensus "Hold" rating and a consensus price target of $20.67 (two Buys, one Sell).
• The most recent quarter showed an EPS miss of ($0.17) vs. ($0.14) expected but revenue beat at $26.24M vs. $24.50M; the company remains unprofitable with negative margins and analysts forecast about -0.5 EPS for the year.

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) traded up 6.1% during mid-day trading on Tuesday . The stock traded as high as $16.88 and last traded at $16.08. 22,448,558 shares changed hands during trading, an increase of 34% from the average session volume of 16,815,205 shares. The stock had previously closed at $15.15.

Analyst Ratings Changes

RCAT has been the topic of a number of research analyst reports. Northland Securities set a $22.00 target price on Red Cat in a report on Tuesday, January 20th. LADENBURG THALM/SH SH upped their price target on Red Cat from $15.00 to $20.00 and gave the company a "buy" rating in a research report on Tuesday, March 3rd. Wall Street Zen upgraded Red Cat from a "sell" rating to a "hold" rating in a research note on Saturday. Needham & Company LLC lifted their price objective 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. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of Red Cat in a research note on Thursday, January 22nd. Two analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus price target of $20.67.

Red Cat Stock Up 6.1%

The company has a market capitalization of $1.95 billion, a price-to-earnings ratio of -21.44 and a beta of 1.53. The stock has a 50 day simple moving average of $13.96 and a 200 day simple moving average of $11.24.

Red Cat (NASDAQ:RCAT - Get Free Report) last announced its quarterly earnings results on Wednesday, March 18th. The company reported ($0.17) earnings per share (EPS) for the quarter, missing the consensus estimate 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 during the quarter, compared to the consensus estimate of $24.50 million. As a group, analysts forecast that Red Cat Holdings, Inc. will post -0.5 EPS for the current year.

Hedge Funds Weigh In On Red Cat

Several hedge funds and other institutional investors have recently modified their holdings of RCAT. State Street Corp grew its position in shares of Red Cat by 136.4% during the fourth quarter. State Street Corp now owns 6,612,153 shares of the company's stock worth $52,434,000 after acquiring an additional 3,815,310 shares during the last quarter. Vanguard Group Inc. boosted its stake in Red Cat by 9.0% during the 4th quarter. Vanguard Group Inc. now owns 6,000,037 shares of the company's stock valued at $47,580,000 after purchasing an additional 493,660 shares during the period. Geode Capital Management LLC boosted its stake in Red Cat by 13.4% during the 4th quarter. Geode Capital Management LLC now owns 2,520,524 shares of the company's stock valued at $19,991,000 after purchasing an additional 297,967 shares during the period. AWM Investment Company Inc. grew its position in Red Cat by 15.3% in the 2nd quarter. AWM Investment Company Inc. now owns 2,037,616 shares of the company's stock worth $14,834,000 after purchasing an additional 269,942 shares during the last quarter. Finally, Brevan Howard Capital Management LP acquired a new stake in shares of Red Cat in the third quarter valued at approximately $19,739,000. Institutional investors and hedge funds own 37.97% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.