Red Cat (NASDAQ:RCAT) Trading 1.9% Higher - Should You Buy?

Key Points

• Shares of Red Cat climbed 1.9% on Friday to as high as $18.78 (last $15.36) on a surge in volume—56,986,134 shares traded, about a 270% increase versus average session volume.
• Analysts are mixed but leaning positive: the consensus rating is a Moderate Buy with an average price target of $19.33 (ratings include 1 Strong Buy, 2 Buy, 1 Sell and targets up to $22).
• Red Cat is a defense-focused tech holding that builds robotics, autonomy and UAS for ISR and other missions; the company has a market cap of $1.83 billion and a negative trailing PE (-34.91), indicating it is not yet profitable.

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) shot up 1.9% on Friday . The stock traded as high as $18.78 and last traded at $15.36. 56,986,134 shares were traded during trading, an increase of 270% from the average session volume of 15,402,961 shares. The stock had previously closed at $15.08.

Analysts Set New Price Targets

RCAT has been the topic of a number of research analyst reports. Needham & Company LLC reissued a "buy" rating and set a $16.00 price objective on shares of Red Cat in a report on Monday. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Red Cat in a research report on Thursday, January 22nd. LADENBURG THALM/SH SH boosted their price target on shares of Red Cat from $15.00 to $20.00 and gave the company a "buy" rating in a research report on Tuesday. Finally, Northland Securities set a $22.00 price objective on shares of Red Cat in a research note on Tuesday, January 20th. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Red Cat currently has an average rating of "Moderate Buy" and a consensus price target of $19.33.

Red Cat Stock Performance

The stock has a market cap of $1.83 billion, a PE ratio of -34.91 and a beta of 1.53. The firm's 50-day moving average is $12.59 and its 200 day moving average is $10.68.

Institutional Trading of Red Cat

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Arizona State Retirement System grew its stake in shares of Red Cat by 3.0% in the 4th quarter. Arizona State Retirement System now owns 29,311 shares of the company's stock valued at $232,000 after purchasing an additional 855 shares during the last quarter. VestGen Advisors LLC grew its position in Red Cat by 4.9% in the 2nd quarter. VestGen Advisors LLC now owns 23,625 shares of the company's stock valued at $172,000 after buying an additional 1,097 shares during the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. grew 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 valued at $1,325,000 after buying an additional 1,147 shares during the last quarter. Advisory Services Network LLC increased its stake in Red Cat by 5.3% in the 3rd quarter. Advisory Services Network LLC now owns 30,200 shares of the company's stock valued at $313,000 after buying an additional 1,507 shares during the period. Finally, AlphaQuest LLC raised its position in Red Cat by 17.4% during the 3rd quarter. AlphaQuest LLC now owns 10,839 shares of the company's stock worth $112,000 after buying an additional 1,608 shares during the last quarter. 37.97% of the stock is owned by hedge funds and other institutional investors.

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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