Red Cat (NASDAQ:RCAT) Trading Up 2% – What’s Next?

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s share price traded up 2% during mid-day trading on Monday . The company traded as high as $8.00 and last traded at $7.79. 5,915,682 shares were traded during trading, a decline of 59% from the average session volume of 14,273,941 shares. The stock had previously closed at $7.64.

Analyst Ratings Changes

Several research analysts have recently issued reports on RCAT shares. 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. Weiss Ratings reissued a “sell (d-)” rating on shares of Red Cat in a research note on Friday, July 17th. UBS Group began coverage on shares of Red Cat in a report on Wednesday, May 27th. They issued a “buy” rating on the stock. Clear Str raised shares of Red Cat to a “strong-buy” rating in a research note on Wednesday, April 29th. Finally, HC Wainwright started coverage on shares of Red Cat in a report on Wednesday, May 27th. They set a “buy” rating and a $20.00 target price for the company. Two 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 company’s stock. According to MarketBeat, Red Cat has an average rating of “Buy” and an average price target of $21.40.

Red Cat Price Performance

The stock has a market cap of $956.14 million, a price-to-earnings ratio of -11.13 and a beta of 1.29. The firm has a 50 day simple moving average of $10.34 and a two-hundred day simple moving average of $12.13.

Red Cat (NASDAQ:RCAT) last posted its earnings results on Thursday, May 7th. The company reported ($0.22) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.12) by ($0.10). The company had revenue of $15.47 million for the quarter, compared to analyst estimates of $17.63 million. Red Cat had a negative return on equity of 35.86% and a negative net margin of 138.36%.The business’s quarterly revenue was up 849.1% on a year-over-year basis. On average, sell-side analysts expect that Red Cat Holdings, Inc. will post -0.68 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, Director Paul Funk II sold 165,028 shares of Red Cat stock in a transaction that occurred on Thursday, June 11th. The shares were sold at an average price of $11.50, for a total transaction of $1,897,822.00. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 12.50% of the stock is owned by insiders.

Institutional Investors Weigh In On Red Cat

Hedge funds have recently bought and sold shares of the company. State Street Corp grew its holdings in shares of Red Cat by 136.4% in the 4th 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. increased its position in shares of Red Cat by 43.9% in the 3rd quarter. Vanguard Group Inc. now owns 5,506,377 shares of the company’s stock valued at $56,991,000 after buying an additional 1,680,929 shares in the last quarter. Davidson Kempner Capital Management LP acquired a new stake in Red Cat during the 3rd quarter worth $17,286,000. Renaissance Technologies LLC acquired a new stake in Red Cat during the 1st quarter worth $18,533,000. Finally, CenterBook Partners LP lifted its holdings in Red Cat by 1,872.4% during the fourth quarter. CenterBook Partners LP now owns 1,105,132 shares of the company’s stock worth $8,764,000 after acquiring an additional 1,049,101 shares in the last quarter. 37.97% of the stock is currently owned by institutional investors and hedge funds.

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.