Investors Purchase Large Volume of Call Options on Red Cat (NASDAQ:RCAT)

Red Cat Holdings, Inc. (NASDAQ:RCAT) was the recipient of some unusual options trading on Monday. Investors bought 36,890 call options on the company. This is an increase of 58% compared to the average volume of 23,414 call options.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. Tudor Investment Corp ET AL increased its holdings in Red Cat by 214.0% in the third quarter. Tudor Investment Corp ET AL now owns 1,277,523 shares of the company’s stock worth $13,222,000 after purchasing an additional 870,612 shares in the last quarter. IFP Advisors Inc grew its position in shares of Red Cat by 181.1% during the 3rd quarter. IFP Advisors Inc now owns 2,670 shares of the company’s stock worth $28,000 after buying an additional 1,720 shares during the period. CIBC Private Wealth Group LLC increased its stake in shares of Red Cat by 22.2% in the 3rd quarter. CIBC Private Wealth Group LLC now owns 22,000 shares of the company’s stock valued at $228,000 after acquiring an additional 4,000 shares in the last quarter. CIBC Bancorp USA Inc. bought a new stake in shares of Red Cat in the 3rd quarter valued at $322,000. Finally, Captrust Financial Advisors lifted its position in shares of Red Cat by 22.6% during the 3rd quarter. Captrust Financial Advisors now owns 1,005,488 shares of the company’s stock valued at $10,407,000 after acquiring an additional 185,209 shares during the period. 37.97% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

RCAT has been the subject of several recent research reports. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Red Cat in a research note on Wednesday, October 8th. Needham & Company LLC reduced their target price on shares of Red Cat from $17.00 to $12.00 and set a “buy” rating on the stock in a report on Friday, November 14th. Wall Street Zen downgraded shares of Red Cat from a “hold” rating to a “sell” rating in a research note on Saturday, October 4th. Finally, LADENBURG THALM/SH SH raised shares of Red Cat to a “strong-buy” rating in a research note on Thursday, December 18th. Two equities research 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’s stock. According to data from MarketBeat, Red Cat has an average rating of “Buy” and an average target price of $14.00.

Red Cat Stock Performance

Red Cat stock opened at $10.82 on Wednesday. The firm has a market cap of $1.29 billion, a price-to-earnings ratio of -24.59 and a beta of 1.48. Red Cat has a 52-week low of $4.58 and a 52-week high of $16.70. The firm has a 50 day moving average price of $8.30 and a two-hundred day moving average price of $9.33.

Red Cat (NASDAQ:RCAT) 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. As a group, equities research analysts predict that Red Cat will post -0.5 EPS for the current fiscal year.

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.