Red Cat (NASDAQ:RCAT) Shares Climb 1.1% – Should You Buy?

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) traded up 1.1% on Friday. The stock traded as high as $6.59 and last traded at $6.40. Approximately 6,037,542 shares were traded during trading, a decline of 53% from the average session volume of 12,846,677 shares. The stock had previously closed at $6.33.

Analyst Ratings Changes

RCAT has been the subject of a number of analyst reports. Piper Sandler started coverage on Red Cat in a report on Wednesday, September 2nd. They issued a “neutral” rating and a $9.00 price target for the company. Northland Securities set a $13.00 target price on shares of Red Cat in a research note on Thursday, September 17th. HC Wainwright reissued a “buy” rating and set a $20.00 price target on shares of Red Cat in a report on Friday, August 7th. Wall Street Zen lowered shares of Red Cat from a “sell” rating to a “strong sell” rating in a research report on Saturday, July 18th. Finally, Evercore began coverage on shares of Red Cat in a report on Monday, August 31st. They issued an “outperform” rating and a $15.00 price objective for the company. Two equities research analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating, one has given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $16.71.

Red Cat Price Performance

The firm has a fifty day simple moving average of $8.29 and a 200 day simple moving average of $10.34. The company has a market capitalization of $785.54 million, a price-to-earnings ratio of -7.90 and a beta of 1.52.

Red Cat (NASDAQ:RCAT) last announced its earnings results on Thursday, August 6th. The company reported ($0.26) earnings per share for the quarter, missing the consensus estimate of ($0.21) by ($0.05). The business had revenue of $20.20 million for the quarter, compared to analyst estimates of $22.65 million. Red Cat had a negative return on equity of 32.25% and a negative net margin of 136.26%. Research analysts predict that Red Cat Holdings, Inc. will post -0.79 EPS for the current year.

Insider Buying and Selling

In related news, Director Nicholas Liuzza, Jr. sold 55,000 shares of the business’s stock in a transaction on Tuesday, August 11th. The shares were sold at an average price of $10.63, for a total value of $584,650.00. Following the completion of the sale, the director owned 489,874 shares of the company’s stock, valued at approximately $5,207,360.62. The trade was a 10.09% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Christopher Moe sold 20,000 shares of the stock in a transaction on Tuesday, August 11th. The shares were sold at an average price of $10.51, for a total transaction of $210,200.00. Following the transaction, the director directly owned 200,502 shares in the company, valued at approximately $2,107,276.02. The trade was a 9.07% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 225,000 shares of company stock valued at $1,955,850. 12.50% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the stock. State Street Corp boosted its holdings in Red Cat by 68.8% in the 2nd quarter. State Street Corp now owns 12,091,447 shares of the company’s stock worth $128,774,000 after buying an additional 4,928,540 shares during the last quarter. BlackRock Inc. acquired a new position in shares of Red Cat during the second quarter valued at approximately $119,610,000. Van ECK Associates Corp acquired a new position in shares of Red Cat during the second quarter valued at approximately $27,193,000. Renaissance Technologies LLC purchased a new position in shares of Red Cat in the first quarter valued at approximately $18,533,000. Finally, CenterBook Partners LP lifted its position in shares of Red Cat by 1,872.4% in the fourth quarter. CenterBook Partners LP now owns 1,105,132 shares of the company’s stock valued at $8,764,000 after acquiring an additional 1,049,101 shares in the last quarter. 37.97% of the stock is owned by hedge funds and other institutional investors.

About Red Cat

Red Cat Holdings, Inc is a drone technology company that develops and supplies unmanned aircraft systems for defense, government, public safety and commercial applications. The company focuses on autonomous and remotely operated aerial systems designed to support intelligence, surveillance and reconnaissance missions, including operations in contested or GPS-denied environments.

Red Cat’s product portfolio includes the Teal 2 small unmanned aircraft system, a compact drone designed for close-range reconnaissance and situational awareness.