Red Cat (NASDAQ:RCAT) Cut to Strong Sell at Wall Street Zen

Wall Street Zen cut shares of Red Cat (NASDAQ:RCAT) from a sell rating to a strong sell rating in a research report released on Saturday.

RCAT has been the subject of a number of other research reports. LADENBURG THALM/SH SH upgraded shares of Red Cat to a “strong-buy” rating in a report on Wednesday, May 6th. Roth Capital initiated coverage on shares of Red Cat in a research note on Monday, June 1st. They issued a “buy” rating and a $25.00 target price on the stock. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Red Cat in a research report on Tuesday, April 21st. Clear Str raised shares of Red Cat to a “strong-buy” rating in a research note on Wednesday, April 29th. Finally, HC Wainwright initiated coverage on Red Cat in a report on Wednesday, May 27th. They issued a “buy” rating and a $20.00 price target for the company. Two analysts have rated the stock with a Strong Buy rating, four have issued a Buy rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Buy” and an average price target of $21.40.

Red Cat Stock Up 1.6%

RCAT stock opened at $7.76 on Friday. The business’s fifty day simple moving average is $10.50 and its two-hundred day simple moving average is $12.16. Red Cat has a twelve month low of $5.77 and a twelve month high of $18.78. The firm has a market cap of $952.46 million, a price-to-earnings ratio of -11.09 and a beta of 1.29.

Red Cat (NASDAQ:RCAT) last released its earnings results on Thursday, May 7th. The company reported ($0.22) earnings per share for the quarter, missing the consensus estimate of ($0.12) by ($0.10). The business had revenue of $15.47 million for the quarter, compared to the consensus estimate of $17.63 million. Red Cat had a negative return on equity of 35.86% and a negative net margin of 138.36%.The company’s revenue for the quarter was up 849.1% compared to the same quarter last year. Research analysts expect that Red Cat will post -0.67 EPS for the current year.

Insider Transactions at Red Cat

In other Red Cat news, Director Paul Funk II sold 165,028 shares of the stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $11.50, for a total transaction of $1,897,822.00. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. 12.50% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Red Cat

Several hedge funds have recently modified their holdings of the business. State Street Corp increased its holdings in Red Cat by 136.4% during the fourth quarter. State Street Corp now owns 6,612,153 shares of the company’s stock valued at $52,434,000 after buying an additional 3,815,310 shares during the period. Vanguard Group Inc. lifted its holdings in Red Cat by 9.0% during the fourth quarter. Vanguard Group Inc. now owns 6,000,037 shares of the company’s stock worth $47,580,000 after buying an additional 493,660 shares during the period. Geode Capital Management LLC lifted its holdings in Red Cat by 13.4% during the fourth quarter. Geode Capital Management LLC now owns 2,520,524 shares of the company’s stock worth $19,991,000 after buying an additional 297,967 shares during the period. Davidson Kempner Capital Management LP purchased a new stake in Red Cat during the third quarter worth $17,286,000. Finally, Renaissance Technologies LLC bought a new stake in Red Cat during the 1st quarter valued at $18,533,000. Hedge funds and other 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.