Red Cat (NASDAQ:RCAT) Shares Climb 3.2% – Should You Buy?

Red Cat Holdings, Inc. (NASDAQ:RCAT) traded up 3.2% during trading on Thursday. The company traded as high as $6.83 and last traded at $6.80. 8,387,248 shares changed hands during mid-day trading, a decline of 36% from the average session volume of 13,064,729 shares. The stock had previously closed at $6.59.

Analyst Upgrades and Downgrades

A number of equities analysts recently commented on the stock. Northland Securities set a $13.00 price target on shares of Red Cat in a research report on Thursday, September 17th. Wall Street Zen downgraded Red Cat from a “sell” rating to a “strong sell” rating in a research report on Saturday, July 18th. HC Wainwright reaffirmed a “buy” rating and set a $20.00 target price on shares of Red Cat in a research note on Friday, August 7th. Piper Sandler initiated coverage on shares of Red Cat in a research report on Wednesday, September 2nd. They set a “neutral” rating and a $9.00 target price on the stock. Finally, Needham & Company LLC reduced their price target on Red Cat from $20.00 to $15.00 and set a “buy” rating on the stock in a research report on Friday, August 7th. Two research analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $16.71.

Red Cat Trading Down 2.1%

The company has a market cap of $817.45 million, a price-to-earnings ratio of -8.22 and a beta of 1.35. The stock’s 50-day moving average is $8.42 and its 200-day moving average is $10.62.

Red Cat (NASDAQ:RCAT) last posted its quarterly 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 company had revenue of $20.20 million during the quarter, compared to the consensus estimate of $22.65 million. Red Cat had a negative net margin of 136.26% and a negative return on equity of 32.25%. As a group, analysts predict that Red Cat Holdings, Inc. will post -0.79 EPS for the current year.

Insider Transactions at Red Cat

In other Red Cat news, Director Nicholas Reyland Liuzza, Jr. sold 55,000 shares of Red Cat stock in a transaction dated Tuesday, August 11th. The stock was sold at an average price of $10.63, for a total transaction of $584,650.00. Following the completion of the transaction, the director owned 489,874 shares in the company, valued at approximately $5,207,360.62. The trade was a 10.09% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Christopher R. Moe sold 20,000 shares of the business’s stock in a transaction that occurred on Tuesday, August 11th. The stock was sold at an average price of $10.51, for a total value of $210,200.00. Following the sale, the director directly owned 200,502 shares of the company’s stock, valued at $2,107,276.02. This represents a 9.07% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 225,000 shares of company stock valued at $1,955,850 over the last three months. Corporate insiders own 12.50% of the company’s stock.

Institutional Investors Weigh In On Red Cat

Several institutional investors have recently bought and sold shares of RCAT. Fifth Third Bancorp purchased a new position in Red Cat during the 1st quarter worth $33,000. Allworth Financial LP purchased a new stake in shares of Red Cat in the second quarter valued at about $28,000. NFSG Corp lifted its position in shares of Red Cat by 200.0% during the first quarter. NFSG Corp now owns 3,000 shares of the company’s stock valued at $39,000 after purchasing an additional 2,000 shares in the last quarter. PNC Financial Services Group Inc. lifted its position in shares of Red Cat by 294.6% during the first quarter. PNC Financial Services Group Inc. now owns 3,042 shares of the company’s stock valued at $40,000 after purchasing an additional 2,271 shares in the last quarter. Finally, KBC Group NV purchased a new position in Red Cat during the first quarter worth about $45,000. Institutional investors own 37.97% of the company’s stock.

About Red Cat

Red Cat Holdings, Inc is a drone technology company that develops and supplies small unmanned aircraft systems for military, government, public safety and commercial applications. Its solutions are designed to support intelligence, surveillance and reconnaissance, situational awareness, and other missions requiring portable and rapidly deployable aerial systems.

Through its Teal Drones business, Red Cat offers the Teal 2 and related Black Widow systems, compact drones designed for defense and public-safety users.