Red Cat (NASDAQ:RCAT) Trading Up 1.9% – What’s Next?

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) rose 1.9% during trading on Tuesday . The stock traded as high as $9.33 and last traded at $9.10. Approximately 4,877,107 shares changed hands during mid-day trading, a decline of 64% from the average session volume of 13,663,012 shares. The stock had previously closed at $8.93.

Wall Street Analysts Forecast Growth

RCAT has been the topic of a number of recent analyst reports. LADENBURG THALM/SH SH upgraded shares of Red Cat to a “strong-buy” rating in a research note on Wednesday, May 6th. Clear Str raised Red Cat to a “strong-buy” rating in a report on Wednesday, April 29th. Wall Street Zen cut Red Cat from a “sell” rating to a “strong sell” rating in a research report on Saturday, July 18th. Needham & Company LLC reduced their price target on Red Cat from $20.00 to $15.00 and set a “buy” rating for the company in a report on Friday, August 7th. 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 target for the company. Two research 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 MarketBeat, the company presently has a consensus rating of “Buy” and an average price target of $20.40.

Red Cat Stock Performance

The stock has a market capitalization of $1.12 billion, a PE ratio of -11.23 and a beta of 1.32. The company’s fifty day simple moving average is $9.29 and its two-hundred day simple moving average is $11.43.

Red Cat (NASDAQ:RCAT) last announced 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). 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 analysts’ expectations of $22.65 million. Sell-side analysts forecast that Red Cat Holdings, Inc. will post -0.78 EPS for the current fiscal year.

Insider Buying and Selling at Red Cat

In related news, Director Nicholas Reyland Liuzza, Jr. sold 55,000 shares of the stock in a transaction on Tuesday, August 11th. The stock was sold at an average price of $10.63, for a total transaction of $584,650.00. Following the sale, the director owned 489,874 shares of the company’s stock, valued at $5,207,360.62. This trade represents a 10.09% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Paul Funk II sold 165,028 shares of Red Cat 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 disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 240,028 shares of company stock worth $2,692,672. 12.50% of the stock is owned by insiders.

Institutional Investors Weigh In On Red Cat

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Arizona State Retirement System raised its position in shares of Red Cat by 3.0% in the fourth quarter. Arizona State Retirement System now owns 29,311 shares of the company’s stock valued at $232,000 after buying an additional 855 shares during the last quarter. CoreCap Advisors LLC boosted its position in Red Cat by 13.8% during the second quarter. CoreCap Advisors LLC now owns 9,039 shares of the company’s stock worth $96,000 after acquiring an additional 1,095 shares during the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. raised its holdings in Red Cat by 0.7% in 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 during the last quarter. Advisory Services Network LLC raised its holdings in Red Cat by 5.3% in 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 during the last quarter. Finally, Western Wealth Management LLC lifted its stake in shares of 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 currently owned by hedge funds and other institutional investors.

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.