Red Cat (NASDAQ:RCAT) Trading Up 2.6% – Here’s What Happened

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s stock price shot up 2.6% on Thursday . The company traded as high as $8.75 and last traded at $8.54. 6,444,000 shares traded hands during trading, a decline of 52% from the average session volume of 13,328,839 shares. The stock had previously closed at $8.32.

Analyst Upgrades and Downgrades

Several research analysts have issued reports on the stock. Roth Capital initiated coverage on shares of Red Cat in a research report on Monday, June 1st. They set a “buy” rating and a $25.00 price objective on the stock. UBS Group initiated coverage on shares of Red Cat in a report on Wednesday, May 27th. They issued a “buy” rating for the company. 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. 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. Finally, Piper Sandler assumed coverage on Red Cat in a research report on Wednesday. They issued a “neutral” rating and a $9.00 price target on the stock. Two equities research analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $18.00.

Red Cat Price Performance

The stock has a market cap of $1.03 billion, a price-to-earnings ratio of -10.33 and a beta of 1.35. The company’s 50 day moving average is $8.98 and its 200 day moving average is $11.21.

Red Cat (NASDAQ:RCAT) last issued 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). Red Cat had a negative return on equity of 32.25% and a negative net margin of 136.26%.The company had revenue of $20.20 million for the quarter, compared to analyst estimates of $22.65 million. Sell-side analysts predict that Red Cat Holdings, Inc. will post -0.77 earnings per share for the current year.

Insider Buying and Selling

In other Red Cat news, Director Paul Funk, II sold 165,028 shares of the business’s stock in a transaction on Thursday, June 11th. The stock was sold at an average price of $11.50, for a total transaction of $1,897,822.00. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, Director Nicholas Reyland Liuzza, Jr. sold 55,000 shares of the company’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 directly owned 489,874 shares in the company, valued at $5,207,360.62. This trade represents a 10.09% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 240,028 shares of company stock worth $2,692,672 in the last quarter. Company insiders own 12.50% of the company’s stock.

Institutional Investors Weigh In On Red Cat

Several institutional investors and hedge funds have recently made changes to their positions in RCAT. BlackRock Inc. acquired a new stake in Red Cat in the 2nd quarter valued at about $119,610,000. State Street Corp raised its position in Red Cat by 136.4% during the fourth quarter. State Street Corp now owns 6,612,153 shares of the company’s stock worth $52,434,000 after acquiring an additional 3,815,310 shares during the last quarter. Vanguard Group Inc. lifted its holdings in shares of Red Cat by 9.0% in the fourth quarter. Vanguard Group Inc. now owns 6,000,037 shares of the company’s stock valued at $47,580,000 after purchasing an additional 493,660 shares in the last quarter. Van ECK Associates Corp purchased a new stake in shares of Red Cat in the second quarter valued at about $27,193,000. Finally, Geode Capital Management LLC grew its position in shares of 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 purchasing an additional 297,967 shares during the last quarter. 37.97% of the stock is currently owned by hedge funds and other institutional investors.

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.