Red Cat (NASDAQ:RCAT) Trading Up 10.6% – Should You Buy?

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s share price traded up 10.6% during trading on Monday . The company traded as high as $6.96 and last traded at $7.0340. 4,002,758 shares changed hands during trading, a decline of 55% from the average session volume of 8,849,029 shares. The stock had previously closed at $6.36.

Analysts Set New Price Targets

RCAT has been the subject of several recent analyst reports. LADENBURG THALM/SH SH upgraded Red Cat to a “strong-buy” rating in a research report on Thursday, October 2nd. Wall Street Zen downgraded shares of Red Cat from a “hold” rating to a “sell” rating in a research note on Saturday, October 4th. Northland Securities set a $16.00 price target on shares of Red Cat in a report on Friday, August 15th. Needham & Company LLC lowered their price objective on shares of Red Cat from $17.00 to $12.00 and set a “buy” rating for the company in a research report on Friday, November 14th. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Red Cat in a research report on Wednesday, October 8th. Two investment analysts have rated the stock with a Strong Buy rating, two have assigned a Buy rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Red Cat has a consensus rating of “Buy” and a consensus price target of $14.00.

Red Cat Price Performance

The company has a fifty day moving average price of $10.69 and a two-hundred day moving average price of $9.09. The company has a market capitalization of $863.05 million, a P/E ratio of -16.43 and a beta of 1.45.

Red Cat (NASDAQ:RCAT) last posted its earnings results on Thursday, November 13th. The company reported ($0.16) EPS for the quarter, missing the consensus estimate of ($0.07) by ($0.09). The company had revenue of $9.65 million for the quarter, compared to analyst estimates of $8.18 million. Red Cat has set its Q4 2025 guidance at EPS. FY 2025 guidance at EPS. As a group, sell-side analysts forecast that Red Cat Holdings, Inc. will post -0.5 earnings per share for the current year.

Insiders Place Their Bets

In related news, Director Christopher R. Moe sold 10,000 shares of the firm’s stock in a transaction on Monday, September 29th. The stock was sold at an average price of $10.91, for a total transaction of $109,100.00. Following the completion of the transaction, the director directly owned 53,073 shares of the company’s stock, valued at $579,026.43. This trade represents a 15.85% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Insiders sold 60,000 shares of company stock valued at $611,000 in the last three months. Corporate insiders own 15.30% of the company’s stock.

Institutional Investors Weigh In On Red Cat

Institutional investors and hedge funds have recently made changes to their positions in the stock. Goldman Sachs Group Inc. raised its holdings in Red Cat by 28.7% during the 1st quarter. Goldman Sachs Group Inc. now owns 266,099 shares of the company’s stock worth $1,565,000 after purchasing an additional 59,334 shares during the last quarter. Toth Financial Advisory Corp bought a new stake in shares of Red Cat in the 2nd quarter valued at $202,000. Moors & Cabot Inc. increased its position in shares of Red Cat by 65.6% during the second quarter. Moors & Cabot Inc. now owns 280,825 shares of the company’s stock worth $2,044,000 after buying an additional 111,225 shares during the period. Integrated Wealth Concepts LLC increased its position in shares of Red Cat by 66.0% during the first quarter. Integrated Wealth Concepts LLC now owns 195,225 shares of the company’s stock worth $1,148,000 after buying an additional 77,630 shares during the period. Finally, Mitsubishi UFJ Asset Management Co. Ltd. raised its stake in Red Cat by 31.1% during the second quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 157,704 shares of the company’s stock worth $1,148,000 after buying an additional 37,407 shares during the last quarter. 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.