Red Cat (NASDAQ:RCAT) Trading Up 1.9% – Time to Buy?

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

Analysts Set New Price Targets

A number of research firms have recently weighed in on RCAT. Needham & Company LLC reduced their price target on shares of Red Cat from $20.00 to $15.00 and set a “buy” rating on the stock in a research note on Friday, August 7th. Wall Street Zen downgraded shares of Red Cat from a “sell” rating to a “strong sell” rating in a report on Saturday, July 18th. UBS Group started coverage on Red Cat in a report on Wednesday, May 27th. They set a “buy” rating on the stock. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Red Cat in a report on Friday, July 17th. Finally, Clear Str upgraded Red Cat to a “strong-buy” rating in a research report on Wednesday, April 29th. Two research analysts have rated the stock with a Strong Buy rating, four have issued a Buy rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Buy” and a consensus price target of $20.40.

Red Cat Price Performance

The company has a market cap of $1.13 billion, a price-to-earnings ratio of -11.44 and a beta of 1.31. The business’s fifty day moving average price is $9.21 and its 200 day moving average price is $11.39.

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

Insider Buying and Selling

In other Red Cat news, Director Nicholas Reyland Liuzza, Jr. sold 55,000 shares of the firm’s 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 completion of the transaction, the director owned 489,874 shares in the company, valued at approximately $5,207,360.62. This trade represents a 10.09% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Christopher R. Moe sold 20,000 shares of the business’s stock in a transaction that occurred on 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 owned 200,502 shares in the company, valued at $2,107,276.02. This trade represents a 9.07% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 240,028 shares of company stock valued at $2,692,672 over the last ninety days. 12.50% of the stock is owned by company insiders.

Hedge Funds Weigh In On Red Cat

Several hedge funds and other institutional investors have recently bought and sold shares of the company. BlackRock Inc. acquired a new stake in Red Cat in the second quarter worth $119,610,000. State Street Corp grew its stake 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. Van ECK Associates Corp bought a new stake in Red Cat in the 2nd quarter valued at about $27,193,000. Vanguard Group Inc. raised its stake in Red Cat by 43.9% during the 3rd quarter. Vanguard Group Inc. now owns 5,506,377 shares of the company’s stock worth $56,991,000 after buying an additional 1,680,929 shares during the period. Finally, Davidson Kempner Capital Management LP acquired a new position in Red Cat during the 3rd quarter worth approximately $17,286,000. Institutional investors and hedge funds own 37.97% of the company’s stock.

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.