Red Cat (NASDAQ:RCAT) Trading Up 1.2% – Should You Buy?

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s stock price traded up 1.2% during mid-day trading on Monday . The stock traded as high as $8.98 and last traded at $8.59. 6,028,383 shares were traded during mid-day trading, a decline of 55% from the average daily volume of 13,468,475 shares. The stock had previously closed at $8.49.

Analyst Ratings Changes

Several equities analysts have recently commented on RCAT shares. Needham & Company LLC cut their price target on Red Cat from $20.00 to $15.00 and set a “buy” rating on the stock in a research note on Friday, August 7th. Piper Sandler started coverage on shares of Red Cat in a research report on Wednesday. They set a “neutral” rating and a $9.00 target price on the stock. HC Wainwright restated a “buy” rating and issued a $20.00 price target on shares of Red Cat in a report on Friday, August 7th. UBS Group assumed coverage on shares of Red Cat in a research report on Wednesday, May 27th. They issued a “buy” rating for the company. Finally, Wall Street Zen downgraded shares of Red Cat from a “sell” rating to a “strong sell” rating in a research note on Saturday, July 18th. Two analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $18.00.

Red Cat Price Performance

The business has a 50-day moving average of $9.02 and a two-hundred day moving average of $11.27. The company has a market cap of $1.01 billion, a P/E ratio of -10.19 and a beta of 1.35.

Red Cat (NASDAQ:RCAT) last announced its earnings results on Thursday, August 6th. The company reported ($0.26) EPS for the quarter, missing analysts’ consensus estimates of ($0.21) by ($0.05). The firm had revenue of $20.20 million during the quarter, compared to the consensus estimate of $22.65 million. Red Cat had a negative return on equity of 32.25% and a negative net margin of 136.26%. Equities analysts anticipate that Red Cat Holdings, Inc. will post -0.78 EPS for the current fiscal year.

Insider Transactions at Red Cat

In related news, Director Nicholas Reyland Liuzza, Jr. sold 55,000 shares of the 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 sale, the director owned 489,874 shares of the company’s stock, valued at $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 SEC, which is available at this link. Also, Director Christopher R. Moe sold 20,000 shares of the firm’s stock in a transaction that occurred on Tuesday, August 11th. The shares were sold at an average price of $10.51, for a total transaction of $210,200.00. Following the completion of the sale, the director owned 200,502 shares of the company’s stock, valued at approximately $2,107,276.02. This trade represents a 9.07% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 240,028 shares of company stock valued at $2,692,672 in the last 90 days. Insiders own 12.50% of the company’s stock.

Institutional Trading of Red Cat

Hedge funds and other institutional investors have recently made changes to their positions in the business. BlackRock Inc. acquired a new stake in shares of Red Cat in the 2nd quarter worth $119,610,000. State Street Corp increased its position in Red Cat by 136.4% during 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 in the last quarter. Vanguard Group Inc. increased its position in Red Cat by 9.0% during the 4th quarter. Vanguard Group Inc. now owns 6,000,037 shares of the company’s stock valued at $47,580,000 after buying an additional 493,660 shares in the last quarter. Van ECK Associates Corp purchased a new stake in Red Cat in the second quarter valued at about $27,193,000. Finally, Geode Capital Management LLC raised its stake in Red Cat by 13.4% in the fourth quarter. Geode Capital Management LLC now owns 2,520,524 shares of the company’s stock valued at $19,991,000 after buying an additional 297,967 shares during the last quarter. Hedge funds and other institutional investors 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.