Red Cat (NASDAQ:RCAT) Stock Price Up 8.3% - Here's Why

Key Points

• Shares jumped 8.3%, trading as high as $16.65 on Wednesday with heavy volume (24.37M shares, ~40% above the average) and are trading well above their 50‑day ($8.91) and 200‑day ($9.73) moving averages.
• Analyst sentiment is mixed—several firms raised ratings or targets (Needham, Ladenburg) while others maintain sell calls—but the consensus is a Buy with an average price target of $19.
• Fundamentals are uneven: Red Cat missed EPS expectations (reported -$0.16 vs. -$0.07 est.) but beat revenue at $9.65M, and institutional investors (notably Vanguard) have substantially increased positions, leaving institutions with about 38% ownership.

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) traded up 8.3% on Wednesday . The stock traded as high as $16.65 and last traded at $15.61. 24,366,277 shares traded hands during mid-day trading, an increase of 40% from the average session volume of 17,414,549 shares. The stock had previously closed at $14.41.

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on the stock. Needham & Company LLC lifted their target price on shares of Red Cat from $12.00 to $16.00 and gave the company a "buy" rating in a report on Tuesday, January 13th. LADENBURG THALM/SH SH raised Red Cat to a "strong-buy" rating in a report on Thursday, December 18th. Wall Street Zen lowered shares of Red Cat from a "hold" rating to a "sell" rating in a research report on Saturday, October 4th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Red Cat in a research note on Wednesday, October 8th. Finally, Northland Securities set a $22.00 price target on shares of Red Cat in a research report on Tuesday. Two investment analysts have rated the stock with a Strong Buy rating, one has issued a Buy rating and one has given a Sell rating to the stock. According to MarketBeat.com, Red Cat currently has an average rating of "Buy" and an average price target of $19.00.

Red Cat Stock Up 8.3%

The firm has a market cap of $1.86 billion, a PE ratio of -35.48 and a beta of 1.48. The firm's 50 day moving average is $8.91 and its 200-day moving average is $9.73.

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

Institutional Trading of Red Cat

Several large investors have recently bought and sold shares of RCAT. Vanguard Group Inc. increased its position in shares of Red Cat by 43.9% during the third quarter. Vanguard Group Inc. now owns 5,506,377 shares of the company's stock worth $56,991,000 after acquiring an additional 1,680,929 shares during the last quarter. AWM Investment Company Inc. boosted its position in Red Cat by 15.3% during the 2nd quarter. AWM Investment Company Inc. now owns 2,037,616 shares of the company's stock valued at $14,834,000 after purchasing an additional 269,942 shares during the period. Brevan Howard Capital Management LP acquired a new position in shares of Red Cat during the third quarter valued at $19,739,000. Davidson Kempner Capital Management LP acquired a new stake in shares of Red Cat in the third quarter valued at approximately $17,286,000. Finally, Geode Capital Management LLC raised its stake in Red Cat by 142.7% during the 2nd quarter. Geode Capital Management LLC now owns 1,656,720 shares of the company's stock valued at $12,063,000 after acquiring an additional 974,121 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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