Red Cat (NASDAQ:RCAT) Shares Gap Up – Still a Buy?

Red Cat Holdings, Inc. (NASDAQ:RCAT) gapped up before the market opened on Friday . The stock had previously closed at $10.14, but opened at $10.71. Red Cat shares last traded at $10.97, with a volume of 2,037,185 shares traded.

Wall Street Analysts Forecast Growth

A number of brokerages have recently commented on RCAT. Needham & Company LLC started coverage on shares of Red Cat in a research report on Friday, October 3rd. They issued a “buy” rating and a $17.00 price objective for the company. LADENBURG THALM/SH SH upgraded Red Cat to a “strong-buy” rating in a report on Thursday, October 2nd. Weiss Ratings reissued a “sell (d-)” rating on shares of Red Cat in a research report on Saturday. Wall Street Zen cut Red Cat from a “hold” rating to a “sell” rating in a research report on Saturday, October 4th. Finally, Northland Securities set a $16.00 target price on Red Cat in a research note on Friday, August 15th. Two research analysts have rated the stock with a Strong Buy rating, two have assigned a Buy rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, Red Cat presently has an average rating of “Buy” and an average target price of $16.50.

Red Cat Price Performance

The stock has a market capitalization of $1.32 billion, a price-to-earnings ratio of -20.65 and a beta of 1.45. The company’s 50-day simple moving average is $10.84 and its 200-day simple moving average is $8.58.

Insiders Place Their Bets

In related news, Director Christopher R. Moe sold 10,000 shares of the business’s stock in a transaction on Monday, September 29th. The stock was sold at an average price of $10.91, for a total value of $109,100.00. Following the completion of the sale, the director directly owned 53,073 shares in the company, valued at $579,026.43. The trade was a 15.85% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Over the last ninety days, insiders sold 86,833 shares of company stock worth $861,560. Company insiders own 15.30% of the company’s stock.

Institutional Investors Weigh In On Red Cat

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Goldman Sachs Group Inc. boosted its holdings in Red Cat by 28.7% in the 1st quarter. Goldman Sachs Group Inc. now owns 266,099 shares of the company’s stock valued at $1,565,000 after purchasing an additional 59,334 shares during the period. Toth Financial Advisory Corp acquired a new stake in shares of Red Cat in the second quarter valued at approximately $202,000. Integrated Wealth Concepts LLC boosted its stake in shares of Red Cat by 66.0% in the first quarter. Integrated Wealth Concepts LLC now owns 195,225 shares of the company’s stock valued at $1,148,000 after buying an additional 77,630 shares during the period. Truist Financial Corp acquired a new stake in Red Cat during the second quarter worth approximately $167,000. Finally, Wealth Enhancement Advisory Services LLC acquired a new stake in Red Cat during the second quarter worth approximately $180,000. Institutional investors and hedge funds own 37.97% of the company’s stock.

About Red Cat

Red Cat Holdings, Inc engages in the provision of various products, services, and solutions to the drone industry. The company operates through two segments: Enterprise and Consumer. It built infrastructure to manages drone fleets and fly, and provide services remotely, navigate confined industrial interior spaces and dangerous military environment.