Red Cat (NASDAQ:RCAT) Shares Up 2.6% – What’s Next?

Red Cat Holdings, Inc. (NASDAQ:RCAT) shares rose 2.6% during trading on Thursday . The company traded as high as $8.75 and last traded at $8.54. 6,444,000 shares changed hands during trading, a decline of 52% from the average session volume of 13,328,839 shares. The stock had previously closed at $8.32.

Analyst Ratings Changes

Several research analysts recently weighed in on the stock. Weiss Ratings reissued a “sell (d-)” rating on shares of Red Cat in a research note on Friday, July 17th. Evercore initiated coverage on shares of Red Cat in a research note on Monday. They set an “outperform” rating and a $15.00 price target on the stock. Needham & Company LLC lowered their price target on shares of Red Cat from $20.00 to $15.00 and set a “buy” rating for the company in a report on Friday, August 7th. HC Wainwright reiterated a “buy” rating and set a $20.00 price target on shares of Red Cat in a report on Friday, August 7th. Finally, Wall Street Zen lowered shares of Red Cat from a “sell” rating to a “strong sell” rating in a research report on Saturday, July 18th. Two research analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $18.00.

Red Cat Price Performance

The firm has a market cap of $1.05 billion, a PE ratio of -10.54 and a beta of 1.35. The stock has a 50-day moving average price of $9.00 and a 200 day moving average price of $11.25.

Red Cat (NASDAQ:RCAT) last released its earnings results on Thursday, August 6th. The company reported ($0.26) EPS for the quarter, missing the consensus estimate of ($0.21) by ($0.05). Red Cat had a negative net margin of 136.26% and a negative return on equity of 32.25%. The business had revenue of $20.20 million during the quarter, compared to analyst estimates of $22.65 million. As a group, equities research analysts anticipate that Red Cat Holdings, Inc. will post -0.78 earnings per share for the current year.

Insider Activity at Red Cat

In other news, Director Paul Funk, II sold 165,028 shares of the firm’s stock in a transaction dated 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 SEC, which is available through the SEC website. Also, Director Christopher R. Moe sold 20,000 shares of Red Cat stock in a transaction dated Tuesday, August 11th. The shares were sold at an average price of $10.51, for a total value of $210,200.00. Following the completion of the transaction, the director directly owned 200,502 shares in the company, valued at $2,107,276.02. This represents a 9.07% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 240,028 shares of company stock worth $2,692,672. 12.50% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of RCAT. Arizona State Retirement System grew its stake in Red Cat by 3.0% during the fourth quarter. Arizona State Retirement System now owns 29,311 shares of the company’s stock worth $232,000 after buying an additional 855 shares during the period. CoreCap Advisors LLC raised its stake in shares of Red Cat by 13.8% in the 2nd quarter. CoreCap Advisors LLC now owns 9,039 shares of the company’s stock valued at $96,000 after acquiring an additional 1,095 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd. lifted its holdings in shares of Red Cat by 0.7% during the 4th quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 167,084 shares of the company’s stock valued at $1,325,000 after acquiring an additional 1,147 shares in the last quarter. Advisory Services Network LLC lifted its holdings in shares of Red Cat by 5.3% during the 3rd quarter. Advisory Services Network LLC now owns 30,200 shares of the company’s stock valued at $313,000 after acquiring an additional 1,507 shares in the last quarter. Finally, Western Wealth Management LLC boosted its position in Red Cat by 4.5% during the 1st quarter. Western Wealth Management LLC now owns 36,722 shares of the company’s stock worth $481,000 after purchasing an additional 1,570 shares during the period. 37.97% of the stock is owned by institutional investors and hedge funds.

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.