Red Cat Holdings, Inc. (NASDAQ:RCAT) Stock Has Average Target Price of $16.29

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) have earned a consensus recommendation of “Moderate Buy” from the ten research firms that are covering the stock, MarketBeat reports. Two analysts have rated the stock with a sell rating, one has assigned a hold rating, five have issued a buy rating and two have issued a strong buy rating on the company. The average 12-month price objective among analysts that have issued ratings on the stock in the last year is $16.29.

Several equities analysts have commented on the stock. Weiss Ratings restated a “sell (d-)” rating on shares of Red Cat in a research note on Thursday, October 15th. Evercore started coverage on Red Cat in a report on Monday, August 31st. They issued an “outperform” rating and a $15.00 target price for the company. HC Wainwright reiterated a “buy” rating and issued a $20.00 price objective on shares of Red Cat in a research note on Friday, August 7th. Needham & Company LLC reissued a “buy” rating and set a $15.00 price objective on shares of Red Cat in a research report on Tuesday, October 20th. Finally, Wall Street Zen downgraded Red Cat from a “sell” rating to a “strong sell” rating in a research report on Saturday, July 18th.

Insider Activity

In other news, Director Nicholas Reyland Liuzza, Jr. sold 55,000 shares of the stock in a transaction that occurred on Tuesday, August 11th. The stock was sold at an average price of $10.63, for a total value of $584,650.00. Following the completion of the sale, the director directly owned 489,874 shares of the company’s stock, valued at approximately $5,207,360.62. This represents a 10.09% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Jeffrey M. Thompson sold 150,000 shares of the stock in a transaction on Thursday, October 15th. The stock was sold at an average price of $4.51, for a total transaction of $676,500.00. Following the sale, the chief executive officer owned 11,562,202 shares of the company’s stock, valued at approximately $52,145,531.02. This represents a 1.28% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 375,000 shares of company stock worth $2,632,350. 12.50% of the stock is currently owned by insiders.

Institutional Trading of Red Cat

Several hedge funds have recently made changes to their positions in RCAT. VestGen Advisors LLC lifted its stake in shares of Red Cat by 17.6% in the 3rd quarter. VestGen Advisors LLC now owns 46,188 shares of the company’s stock valued at $298,000 after purchasing an additional 6,916 shares in the last quarter. Fifth Third Wealth Advisors LLC acquired a new stake in Red Cat during the 3rd quarter worth approximately $76,000. Sterling Capital Management LLC increased its position in Red Cat by 1,063.9% during the 3rd quarter. Sterling Capital Management LLC now owns 4,551 shares of the company’s stock worth $29,000 after purchasing an additional 4,160 shares in the last quarter. Wealth Management Partners LLC lifted its position in Red Cat by 108.6% during the third quarter. Wealth Management Partners LLC now owns 44,832 shares of the company’s stock valued at $290,000 after buying an additional 23,335 shares in the last quarter. Finally, Counterpoint Mutual Funds LLC purchased a new stake in Red Cat during the third quarter worth approximately $463,000. Institutional investors and hedge funds own 37.97% of the company’s stock.

Red Cat Stock Up 0.8%

NASDAQ:RCAT opened at $4.91 on Friday. The company has a market capitalization of $602.66 million, a P/E ratio of -6.06 and a beta of 1.51. The stock’s fifty day moving average is $6.87 and its two-hundred day moving average is $10.59. Red Cat has a 52 week low of $4.14 and a 52 week high of $18.78.

Red Cat (NASDAQ:RCAT) last announced its quarterly earnings results 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 for 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%. Sell-side analysts anticipate that Red Cat will post -0.79 earnings per share for the current fiscal year.

About Red Cat

Red Cat Holdings, Inc is a drone technology company that develops and provides unmanned aircraft systems, software, and related services for defense, public safety, and commercial applications. Its solutions are designed to support intelligence, surveillance, reconnaissance, and situational-awareness missions in demanding operating environments.

Through its Teal Drones subsidiary, Red Cat offers small unmanned aircraft systems such as the Teal 2, a compact drone designed for nighttime operations and short-range reconnaissance.