Northland Securities Initiates Coverage on Red Cat (NASDAQ:RCAT)

Analysts at Northland Securities assumed coverage on shares of Red Cat (NASDAQ:RCAT) in a research report issued to clients and investors on Tuesday,Briefing.com Automated Import reports. The firm set an “outperform” rating and a $13.00 price target on the stock. Northland Securities’ price objective points to a potential upside of 169.71% from the stock’s current price.

Red Cat Stock Down 10.6 %

Shares of NASDAQ RCAT opened at $4.82 on Tuesday. The stock has a market cap of $386.38 million, a P/E ratio of -8.93 and a beta of 1.32. The business’s fifty day simple moving average is $9.05 and its 200-day simple moving average is $6.54. Red Cat has a 12-month low of $0.70 and a 12-month high of $15.27. The company has a current ratio of 1.43, a quick ratio of 0.60 and a debt-to-equity ratio of 0.30.

Red Cat (NASDAQ:RCAT) last posted its quarterly earnings results on Monday, December 16th. The company reported ($0.18) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.09 by ($0.27). Red Cat had a negative net margin of 232.62% and a negative return on equity of 96.00%. During the same period last year, the business posted ($0.11) earnings per share. As a group, equities analysts predict that Red Cat will post -0.5 EPS for the current fiscal year.

Insider Buying and Selling at Red Cat

In other Red Cat news, insider George Michael Matus sold 309,491 shares of the stock in a transaction that occurred on Thursday, December 26th. The shares were sold at an average price of $14.27, for a total value of $4,416,436.57. Following the transaction, the insider now directly owns 304,406 shares in the company, valued at $4,343,873.62. This represents a 50.41 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Joseph David Freedman sold 15,000 shares of the company’s stock in a transaction on Monday, December 30th. The shares were sold at an average price of $14.24, for a total transaction of $213,600.00. Following the completion of the transaction, the director now owns 585,190 shares of the company’s stock, valued at approximately $8,333,105.60. The trade was a 2.50 % decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 1,930,441 shares of company stock valued at $21,099,751. Insiders own 21.50% of the company’s stock.

Hedge Funds Weigh In On Red Cat

Several large investors have recently bought and sold shares of the stock. Squarepoint Ops LLC increased its position in shares of Red Cat by 23.0% during the fourth quarter. Squarepoint Ops LLC now owns 15,496 shares of the company’s stock worth $199,000 after purchasing an additional 2,902 shares in the last quarter. Two Sigma Advisers LP acquired a new position in Red Cat during the fourth quarter worth approximately $362,000. Tidal Investments LLC purchased a new stake in Red Cat in the fourth quarter valued at approximately $270,000. Nomura Holdings Inc. purchased a new stake in Red Cat in the fourth quarter valued at approximately $180,000. Finally, OMERS ADMINISTRATION Corp acquired a new stake in shares of Red Cat in the fourth quarter valued at approximately $1,714,000. Institutional investors and hedge funds own 37.97% of the company’s stock.

Red Cat Company Profile

Red Cat Holdings, Inc engages in the provision of various products, services, and solutions to the drone industry. The company operates through two segments: Enterprise and Consumer. It built infrastructure to manages drone fleets and fly, and provide services remotely, navigate confined industrial interior spaces and dangerous military environment.