Needham & Company LLC Issues Pessimistic Forecast for Red Cat (NASDAQ:RCAT) Stock Price

Red Cat (NASDAQ:RCAT) had its price target dropped by equities researchers at Needham & Company LLC from $20.00 to $15.00 in a report issued on Friday,Benzinga reports. The brokerage currently has a “buy” rating on the stock. Needham & Company LLC’s target price would indicate a potential upside of 73.01% from the stock’s current price.

Several other analysts have also weighed in on RCAT. Roth Capital assumed coverage on shares of Red Cat in a research note on Monday, June 1st. They set a “buy” rating and a $25.00 target price for the company. Weiss Ratings restated a “sell (d-)” rating on shares of Red Cat in a research report on Friday, July 17th. LADENBURG THALM/SH SH raised shares of Red Cat to a “strong-buy” rating in a report on Wednesday, May 6th. UBS Group initiated coverage on shares of Red Cat in a research report on Wednesday, May 27th. They set a “buy” rating for the company. Finally, Wall Street Zen lowered shares of Red Cat from a “sell” rating to a “strong sell” rating in a research note on Saturday, July 18th. Two equities research 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 stock. According to MarketBeat.com, the company currently has a consensus rating of “Buy” and a consensus price target of $20.40.

Red Cat Stock Up 0.1%

NASDAQ:RCAT opened at $8.67 on Friday. The company has a market cap of $1.06 billion, a PE ratio of -12.39 and a beta of 1.31. The business’s 50 day moving average is $9.99 and its two-hundred day moving average is $11.85. Red Cat has a 52 week low of $5.77 and a 52 week high of $18.78.

Red Cat (NASDAQ:RCAT) last posted its quarterly earnings results on Thursday, August 6th. The company reported ($0.26) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.21) by ($0.05). The firm had revenue of $20.20 million for the quarter, compared to analyst estimates of $22.65 million. Red Cat had a negative net margin of 138.36% and a negative return on equity of 35.86%. As a group, sell-side analysts expect that Red Cat will post -0.68 EPS for the current fiscal year.

Insider Transactions at Red Cat

In related 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 sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 12.50% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in RCAT. Fifth Third Bancorp bought a new position in shares of Red Cat in the first quarter worth $33,000. IFP Advisors Inc raised its stake in shares of Red Cat by 181.1% during the third 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 in the last quarter. NFSG Corp raised its stake in shares of Red Cat by 200.0% during the first 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. PNC Financial Services Group Inc. lifted its holdings in Red Cat by 294.6% in the first quarter. PNC Financial Services Group Inc. now owns 3,042 shares of the company’s stock worth $40,000 after purchasing an additional 2,271 shares during the period. Finally, Bank of America Corp DE lifted its holdings in Red Cat by 407.0% in the fourth quarter. Bank of America Corp DE now owns 3,397 shares of the company’s stock worth $44,000 after purchasing an additional 2,727 shares during the period. Institutional investors and hedge funds 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.