Red Cat (NASDAQ:RCAT) Trading Up 2.6% – Time to Buy?

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) rose 2.6% during trading on Thursday . The stock traded as high as $8.12 and last traded at $8.03. 8,017,233 shares traded hands during trading, a decline of 44% from the average session volume of 14,395,209 shares. The stock had previously closed at $7.83.

Key Stories Impacting Red Cat

Here are the key news stories impacting Red Cat this week:

• Positive Sentiment: Red Cat announced it completed integration of its Black Widow™ drone with C3A Solutions’ OBERON-enabled tactical fires networks, expanding Black Widow’s role as a forward ISR sensor for defense customers and reinforcing the company’s military interoperability story. Article Title
• Neutral Sentiment: Short interest data showed no meaningful change in reported short interest, suggesting the latest trading pressure is being driven more by fundamentals and company-specific headlines than by a clear short-selling shift.
• Neutral Sentiment: Several recent write-ups argued that RCAT may still be overvalued after a strong multi-year run, with valuation models suggesting much of the upside could already be priced in. Article Title
• Negative Sentiment: Investor sentiment was hurt by news that Red Cat terminated Chief Revenue Officer Geoffrey Hitchcock for cause, followed by a civil complaint alleging retaliatory termination and contract breaches, raising governance and internal-control concerns. Article Title
• Negative Sentiment: Recent commentary also pointed to insider selling, a weak recent share-price trend, and uncertainty ahead of earnings, all of which can weigh on near-term sentiment toward RCAT. Article Title

Analysts Set New Price Targets

A number of equities analysts recently commented on the stock. Wall Street Zen cut shares of Red Cat from a “sell” rating to a “strong sell” rating in a research report on Saturday, July 18th. LADENBURG THALM/SH SH raised Red Cat to a “strong-buy” rating in a research note on Wednesday, May 6th. UBS Group assumed coverage on Red Cat in a report on Wednesday, May 27th. They issued a “buy” rating on the stock. Clear Str raised Red Cat to a “strong-buy” rating in a research note on Wednesday, April 29th. Finally, Roth Capital assumed coverage on Red Cat in a research report on Monday, June 1st. They set a “buy” rating and a $25.00 price target on the stock. Two investment analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, Red Cat currently has an average rating of “Buy” and an average target price of $21.40.

Red Cat Stock Performance

The firm has a market cap of $936.51 million, a PE ratio of -10.90 and a beta of 1.29. The company’s 50-day simple moving average is $10.34 and its two-hundred day simple moving average is $12.12.

Red Cat (NASDAQ:RCAT) last issued its quarterly earnings data on Thursday, May 7th. The company reported ($0.22) EPS for the quarter, missing the consensus estimate of ($0.12) by ($0.10). The firm had revenue of $15.47 million for the quarter, compared to the consensus estimate of $17.63 million. Red Cat had a negative net margin of 138.36% and a negative return on equity of 35.86%. The firm’s revenue for the quarter was up 849.1% compared to the same quarter last year. On average, analysts expect that Red Cat Holdings, Inc. will post -0.67 EPS for the current year.

Insiders Place Their Bets

In other Red Cat news, Director Paul Funk II sold 165,028 shares of the stock in a transaction that occurred on Thursday, June 11th. The stock was sold at an average price of $11.50, for a total value of $1,897,822.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 12.50% of the company’s stock.

Institutional Trading of Red Cat

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. IFP Advisors Inc increased its position in Red Cat by 181.1% during the 3rd quarter. IFP Advisors Inc now owns 2,670 shares of the company’s stock valued at $28,000 after purchasing an additional 1,720 shares during the period. Fifth Third Bancorp purchased a new stake in shares of Red Cat in the 1st quarter worth about $33,000. California State Teachers Retirement System bought a new stake in shares of Red Cat during the 2nd quarter valued at about $34,000. NFSG Corp boosted its stake in shares of Red Cat by 200.0% during the 1st quarter. NFSG Corp now owns 3,000 shares of the company’s stock valued at $39,000 after purchasing an additional 2,000 shares in the last quarter. Finally, PNC Financial Services Group Inc. increased its position in shares of Red Cat by 294.6% during the first quarter. PNC Financial Services Group Inc. now owns 3,042 shares of the company’s stock valued at $40,000 after buying an additional 2,271 shares during the period. 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.