Red Cat (NASDAQ:RCAT) Trading Up 3.9% – Here’s Why

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) traded up 3.9% during mid-day trading on Thursday . The company traded as high as $9.43 and last traded at $9.28. Approximately 4,989,681 shares changed hands during mid-day trading, a decline of 63% from the average session volume of 13,550,979 shares. The stock had previously closed at $8.93.

Analyst Upgrades and Downgrades

A number of equities research analysts have commented on the company. HC Wainwright reissued a “buy” rating and set a $20.00 price target on shares of Red Cat in a report on Friday, August 7th. Roth Capital initiated coverage on Red Cat in a research note on Monday, June 1st. They issued a “buy” rating and a $25.00 price objective for the company. LADENBURG THALM/SH SH upgraded Red Cat to a “strong-buy” rating in a research report on Wednesday, May 6th. Weiss Ratings reissued a “sell (d-)” rating on shares of Red Cat in a research note on Friday, July 17th. Finally, Wall Street Zen cut Red Cat from a “sell” rating to a “strong sell” rating in a report on Saturday, July 18th. Two investment analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Buy” and an average price target of $20.40.

Red Cat Price Performance

The stock has a market cap of $1.04 billion, a P/E ratio of -10.48 and a beta of 1.31. The stock’s 50-day moving average is $9.10 and its two-hundred day moving average is $11.34.

Red Cat (NASDAQ:RCAT) last released its quarterly earnings data on Thursday, August 6th. The company reported ($0.26) EPS for the quarter, missing the consensus estimate of ($0.21) by ($0.05). The company had revenue of $20.20 million for the quarter, compared to the consensus estimate of $22.65 million. Red Cat had a negative net margin of 136.26% and a negative return on equity of 32.25%. On average, analysts anticipate that Red Cat Holdings, Inc. will post -0.78 EPS for the current fiscal year.

Insider Activity at Red Cat

In related news, Director Christopher R. Moe sold 20,000 shares of the stock in a transaction that occurred on Tuesday, August 11th. The stock was sold at an average price of $10.51, for a total transaction of $210,200.00. Following the completion of the transaction, the director directly owned 200,502 shares of the company’s stock, valued at approximately $2,107,276.02. This represents a 9.07% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Paul Funk II sold 165,028 shares of the firm’s stock in a transaction that occurred on Thursday, June 11th. The shares were sold at an average price of $11.50, for a total value of $1,897,822.00. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 240,028 shares of company stock valued at $2,692,672. Insiders own 12.50% of the company’s stock.

Institutional Investors Weigh In On Red Cat

Several large investors have recently bought and sold shares of RCAT. BlackRock Inc. purchased a new stake in Red Cat during the second quarter valued at $119,610,000. State Street Corp grew its stake in shares of Red Cat by 136.4% in the 4th quarter. State Street Corp now owns 6,612,153 shares of the company’s stock worth $52,434,000 after buying an additional 3,815,310 shares in the last quarter. Van ECK Associates Corp purchased a new position in shares of Red Cat in the 2nd quarter worth $27,193,000. Vanguard Group Inc. increased its holdings in shares of Red Cat by 43.9% in 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 during the last quarter. Finally, Davidson Kempner Capital Management LP bought a new stake in shares of Red Cat in the 3rd quarter worth about $17,286,000. Institutional investors own 37.97% of the company’s stock.

About Red Cat

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.