Red Cat (NASDAQ:RCAT) Stock Price Up 2% – Should You Buy?

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) traded up 2% on Monday . The stock traded as high as $8.00 and last traded at $7.79. Approximately 5,915,682 shares were traded during trading, a decline of 59% from the average session volume of 14,273,941 shares. The stock had previously closed at $7.64.

Wall Street Analyst Weigh In

A number of research analysts have issued reports on the company. Weiss Ratings reiterated a “sell (d-)” rating on shares of Red Cat in a research report on Friday, July 17th. Roth Capital assumed coverage on shares of Red Cat in a report on Monday, June 1st. They issued a “buy” rating and a $25.00 target price for the company. Wall Street Zen downgraded shares of Red Cat from a “sell” rating to a “strong sell” rating in a research note on Saturday, July 18th. LADENBURG THALM/SH SH raised shares of Red Cat to a “strong-buy” rating in a report on Wednesday, May 6th. Finally, Clear Str upgraded shares of Red Cat to a “strong-buy” rating in a research report on Wednesday, April 29th. 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. Based on data from MarketBeat.com, the stock has an average rating of “Buy” and a consensus price target of $21.40.

Red Cat Trading Down 4.0%

The firm has a market cap of $877.59 million, a P/E ratio of -10.22 and a beta of 1.29. The business has a 50-day moving average of $10.30 and a two-hundred day moving average of $12.09.

Red Cat (NASDAQ:RCAT) last issued its earnings results on Thursday, May 7th. The company reported ($0.22) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.12) by ($0.10). The firm had revenue of $15.47 million during the quarter, compared to analyst estimates of $17.63 million. Red Cat had a negative return on equity of 35.86% and a negative net margin of 138.36%.The firm’s revenue was up 849.1% on a year-over-year basis. As a group, equities analysts expect that Red Cat Holdings, Inc. will post -0.68 EPS for the current year.

Insider Activity

In other news, Director Paul Funk II sold 165,028 shares of the company’s 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 filing with the Securities & Exchange Commission, which is available at this link. 12.50% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Red Cat

A number of institutional investors have recently added to or reduced their stakes in the business. Kovack Advisors Inc. bought a new position in shares of Red Cat during the second quarter valued at $110,000. Cambridge Investment Research Advisors Inc. lifted its holdings in shares of Red Cat by 1.2% during the second quarter. Cambridge Investment Research Advisors Inc. now owns 140,804 shares of the company’s stock worth $1,500,000 after purchasing an additional 1,608 shares during the period. Hennion & Walsh Asset Management Inc. bought a new stake in shares of Red Cat in the second quarter worth $421,000. Byrne Asset Management LLC grew its stake in shares of Red Cat by 64.2% in the second quarter. Byrne Asset Management LLC now owns 21,160 shares of the company’s stock worth $225,000 after purchasing an additional 8,270 shares during the last quarter. Finally, CoreCap Advisors LLC increased its holdings in Red Cat by 13.8% in the second quarter. CoreCap Advisors LLC now owns 9,039 shares of the company’s stock valued at $96,000 after purchasing an additional 1,095 shares during the period. 37.97% of the stock is owned by institutional investors.

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.