Red Cat Holdings, Inc. (RCAT) – What Are Analysts Saying About This Stock?

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) have been assigned a consensus recommendation of “Moderate Buy” from the ten brokerages that are currently covering the company, MarketBeat.com reports. Two investment analysts have rated the stock with a sell rating, one has assigned a hold rating, five have given a buy rating and two have issued a strong buy rating on the company. The average twelve-month price objective among brokerages that have updated their coverage on the stock in the last year is $16.29.

Several brokerages have recently commented on RCAT. Needham & Company LLC reaffirmed a “buy” rating and issued a $15.00 target price on shares of Red Cat in a research report on Tuesday. Zacks Research downgraded shares of Red Cat from a “hold” rating to a “strong sell” rating in a report on Monday, October 12th. Northland Securities set a $13.00 target price on Red Cat in a report on Thursday, September 17th. Evercore initiated coverage on shares of Red Cat in a report on Monday, August 31st. They set an “outperform” rating and a $15.00 price objective on the stock. Finally, HC Wainwright reaffirmed a “buy” rating and set a $20.00 price objective on shares of Red Cat in a report on Friday, August 7th.

Insiders Place Their Bets

In other Red Cat news, Director Nicholas Reyland Liuzza, Jr. sold 55,000 shares of the stock in a transaction that occurred on Tuesday, August 11th. The shares were sold at an average price of $10.63, for a total transaction of $584,650.00. Following the transaction, the director owned 489,874 shares in the company, valued at $5,207,360.62. This represents a 10.09% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Christopher R. Moe sold 20,000 shares of the stock in a transaction dated 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 $2,107,276.02. This trade represents a 9.07% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 375,000 shares of company stock worth $2,632,350. Corporate insiders own 12.50% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the business. State Street Corp grew its holdings in Red Cat by 68.8% during the second quarter. State Street Corp now owns 12,091,447 shares of the company’s stock worth $128,774,000 after buying an additional 4,928,540 shares in the last quarter. BlackRock Inc. purchased a new stake in shares of Red Cat during the second quarter worth $119,610,000. Van ECK Associates Corp purchased a new position in Red Cat during the second quarter valued at approximately $27,193,000. Renaissance Technologies LLC purchased a new stake in shares of Red Cat in the 1st quarter valued at about $18,533,000. Finally, AWM Investment Company Inc. purchased a new position in Red Cat in the second quarter worth $9,313,000. Institutional investors and hedge funds own 37.97% of the company’s stock.

Red Cat Price Performance

Shares of RCAT stock opened at $4.43 on Friday. The business’s fifty day moving average price is $7.17 and its 200 day moving average price is $9.35. Red Cat has a 1-year low of $4.14 and a 1-year high of $18.78. The firm has a market capitalization of $543.74 million, a PE ratio of -5.47 and a beta of 1.51.

Red Cat (NASDAQ:RCAT) last issued its quarterly earnings data 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 company had revenue of $20.20 million for the quarter, compared to analyst estimates of $22.65 million. Red Cat had a negative return on equity of 32.25% and a negative net margin of 136.26%. Equities research analysts expect that Red Cat will post -0.79 earnings per share for the current fiscal year.

About Red Cat

Red Cat Holdings, Inc is a drone technology company that develops and provides unmanned aircraft systems, software, and related services for defense, public safety, and commercial applications. Its solutions are designed to support intelligence, surveillance, reconnaissance, and situational-awareness missions in demanding operating environments.

Through its Teal Drones subsidiary, Red Cat offers small unmanned aircraft systems such as the Teal 2, a compact drone designed for nighttime operations and short-range reconnaissance.