Red Cat (NASDAQ:RCAT) Trading Up 9.2% - Should You Buy?

Key Points

• Shares of Red Cat were trading up 9.2% midday at about $16.97 (high $16.98) on roughly 14.4 million shares, about 11% below its average daily volume.
• Analysts are mixed—two Buys and one Sell—giving a consensus rating of "Hold" with an average target of $19.33 and individual targets ranging roughly $16 to $22 (Ladenburg raised its target to $20).
• Red Cat is a defense-focused robotics and autonomy firm (UAS/ISR) with a market cap of about $2.03 billion, a negative P/E, and institutional investors owning roughly 38% after several funds increased or initiated positions.

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) rose 9.2% during mid-day trading on Tuesday . The company traded as high as $16.98 and last traded at $16.97. Approximately 14,395,783 shares changed hands during trading, a decline of 11% from the average daily volume of 16,120,571 shares. The stock had previously closed at $15.54.

Analyst Upgrades and Downgrades

A number of equities analysts recently commented on the company. LADENBURG THALM/SH SH raised their target price on 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 reissued a "buy" rating and set a $16.00 price target on shares of Red Cat in a report on Monday, March 2nd. Northland Securities set a $22.00 price target on Red Cat in a research report on Tuesday, January 20th. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Red Cat in a research note on Thursday, January 22nd. Two equities 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 an average target price of $19.33.

Red Cat Trading Up 9.2%

The firm has a 50 day moving average of $13.55 and a 200-day moving average of $11.00. The company has a market cap of $2.03 billion, a P/E ratio of -38.57 and a beta of 1.53.

Hedge Funds Weigh In On Red Cat

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

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.