Red Cat (NASDAQ:RCAT) Trading Up 7.3% – What’s Next?

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s stock price rose 7.3% during mid-day trading on Tuesday . The stock traded as high as $9.04 and last traded at $8.86. Approximately 12,319,962 shares were traded during mid-day trading, a decline of 12% from the average daily volume of 14,039,966 shares. The stock had previously closed at $8.26.

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on the stock. Weiss Ratings reissued a “sell (d-)” rating on shares of Red Cat in a research report on Friday, July 17th. HC Wainwright initiated coverage on shares of Red Cat in a research note on Wednesday, May 27th. They issued a “buy” rating and a $20.00 price target for the company. LADENBURG THALM/SH SH upgraded shares of Red Cat to a “strong-buy” rating in a report on Wednesday, May 6th. Clear Str raised shares of Red Cat to a “strong-buy” rating in a research report on Wednesday, April 29th. Finally, Roth Capital began coverage on Red Cat in a report on Monday, June 1st. They issued a “buy” rating and a $25.00 price objective on the stock. Two investment analysts have rated the stock with a Strong Buy rating, four have given a Buy rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Buy” and an average price target of $21.40.

Red Cat Price Performance

The company has a market cap of $1.06 billion, a PE ratio of -12.39 and a beta of 1.31. The company’s 50 day simple moving average is $10.10 and its two-hundred day simple moving average is $11.88.

Red Cat (NASDAQ:RCAT) last released its quarterly earnings results on Thursday, August 6th. The company reported ($0.26) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.21) by ($0.05). Red Cat had a negative net margin of 138.36% and a negative return on equity of 35.86%. Sell-side analysts expect that Red Cat Holdings, Inc. will post -0.68 EPS for the current fiscal year.

Insider Buying and Selling

In other news, Director Paul Funk II sold 165,028 shares of the firm’s stock in a transaction on Thursday, June 11th. The stock was sold at an average price of $11.50, for a total transaction of $1,897,822.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 12.50% of the stock is owned by company insiders.

Institutional Investors Weigh In On Red Cat

Several institutional investors and hedge funds have recently modified their holdings of the company. State Street Corp grew its holdings in shares of Red Cat by 136.4% in the fourth quarter. State Street Corp now owns 6,612,153 shares of the company’s stock valued at $52,434,000 after purchasing an additional 3,815,310 shares in the last quarter. Vanguard Group Inc. lifted its holdings in Red Cat by 43.9% during the 3rd quarter. Vanguard Group Inc. now owns 5,506,377 shares of the company’s stock worth $56,991,000 after buying an additional 1,680,929 shares in the last quarter. Davidson Kempner Capital Management LP acquired a new stake in Red Cat during the 3rd quarter worth approximately $17,286,000. Renaissance Technologies LLC acquired a new stake in Red Cat during the 1st quarter worth approximately $18,533,000. Finally, CenterBook Partners LP boosted its position in Red Cat by 1,872.4% in the 4th quarter. CenterBook Partners LP now owns 1,105,132 shares of the company’s stock valued at $8,764,000 after buying an additional 1,049,101 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.