Red Cat (NASDAQ:RCAT) Trading Up 3.9% – Time to Buy?

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) shot up 3.9% on Tuesday . The stock traded as high as $8.91 and last traded at $8.70. 5,467,460 shares traded hands during trading, a decline of 59% from the average daily volume of 13,231,940 shares. The stock had previously closed at $8.37.

Analyst Ratings Changes

Several equities research analysts have recently weighed in on RCAT shares. Wall Street Zen downgraded shares of Red Cat from a “sell” rating to a “strong sell” rating in a research report on Saturday, July 18th. UBS Group assumed coverage on Red Cat in a research note on Wednesday, May 27th. They issued a “buy” rating for the company. Roth Capital began coverage on Red Cat in a report on Monday, June 1st. They issued a “buy” rating and a $25.00 price objective for the company. Weiss Ratings restated a “sell (d-)” rating on shares of Red Cat in a research note on Friday, July 17th. Finally, Evercore began coverage on Red Cat in a report on Monday, August 31st. They set an “outperform” rating and a $15.00 target price on the stock. Two equities research analysts have rated the stock with a Strong Buy rating, five have given a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, Red Cat has a consensus rating of “Moderate Buy” and a consensus price target of $18.00.

Red Cat Price Performance

The stock’s fifty day simple moving average is $8.85 and its 200-day simple moving average is $11.13. The stock has a market cap of $991.74 million, a P/E ratio of -9.98 and a beta of 1.35.

Red Cat (NASDAQ:RCAT) last posted its earnings results on Thursday, August 6th. The company reported ($0.26) EPS for the quarter, missing the consensus estimate of ($0.21) by ($0.05). Red Cat had a negative net margin of 136.26% and a negative return on equity of 32.25%. The company had revenue of $20.20 million for the quarter, compared to the consensus estimate of $22.65 million. Analysts forecast that Red Cat Holdings, Inc. will post -0.77 EPS for the current year.

Insiders Place Their Bets

In other Red Cat news, Director Nicholas Liuzza, Jr. sold 55,000 shares of the firm’s stock in a transaction 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 sale, the director directly owned 489,874 shares in the company, valued at approximately $5,207,360.62. This trade represents a 10.09% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Christopher Moe sold 20,000 shares of the business’s 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 of the company’s stock, valued at approximately $2,107,276.02. This trade represents a 9.07% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 12.50% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. CoreCap Advisors LLC raised its holdings in shares of Red Cat by 13.8% during the second quarter. CoreCap Advisors LLC now owns 9,039 shares of the company’s stock valued at $96,000 after buying an additional 1,095 shares during the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. increased its position in Red Cat by 0.7% in the 4th quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 167,084 shares of the company’s stock valued at $1,325,000 after acquiring an additional 1,147 shares during the period. Advisory Services Network LLC increased its position in Red Cat by 5.3% in the 3rd quarter. Advisory Services Network LLC now owns 30,200 shares of the company’s stock valued at $313,000 after acquiring an additional 1,507 shares during the period. Western Wealth Management LLC raised its stake in Red Cat by 4.5% during the 1st quarter. Western Wealth Management LLC now owns 36,722 shares of the company’s stock valued at $481,000 after acquiring an additional 1,570 shares in the last quarter. Finally, Cambridge Investment Research Advisors Inc. boosted its position in Red Cat by 1.2% during the 2nd quarter. Cambridge Investment Research Advisors Inc. now owns 140,804 shares of the company’s stock worth $1,500,000 after acquiring an additional 1,608 shares during the period. 37.97% of the stock is owned by institutional investors and hedge funds.

About Red Cat

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.