Wall Street Zen Downgrades Red Cat (NASDAQ:RCAT) to Strong Sell

Red Cat (NASDAQ:RCAT) was downgraded by equities research analysts at Wall Street Zen from a “sell” rating to a “strong sell” rating in a research report issued on Saturday.

A number of other research firms also recently commented on RCAT. Roth Capital started coverage on Red Cat in a research note on Monday, June 1st. They issued a “buy” rating and a $25.00 price target for the company. Clear Str upgraded shares of Red Cat to a “strong-buy” rating in a research note on Wednesday, April 29th. LADENBURG THALM/SH SH raised shares of Red Cat to a “strong-buy” rating in a report on Wednesday, May 6th. Weiss Ratings restated a “sell (d-)” rating on shares of Red Cat in a research report on Tuesday, April 21st. Finally, HC Wainwright started coverage on shares of Red Cat in a report on Wednesday, May 27th. They set a “buy” rating and a $20.00 price target for the company. Two analysts have rated the stock with a Strong Buy rating, four have issued a Buy rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Buy” and an average target price of $21.40.

Red Cat Stock Performance

Shares of RCAT stock opened at $7.64 on Friday. The stock has a market cap of $937.73 million, a P/E ratio of -10.91 and a beta of 1.29. Red Cat has a 1 year low of $5.77 and a 1 year high of $18.78. The stock has a 50 day simple moving average of $10.56 and a 200 day simple moving average of $12.16.

Red Cat (NASDAQ:RCAT) last released its earnings results on Thursday, May 7th. The company reported ($0.22) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.12) by ($0.10). The company had revenue of $15.47 million for the quarter, compared to the consensus estimate of $17.63 million. Red Cat had a negative net margin of 138.36% and a negative return on equity of 35.86%. The company’s revenue for the quarter was up 849.1% on a year-over-year basis. Analysts forecast that Red Cat will post -0.67 EPS for the current year.

Insider Activity at Red Cat

In other 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 legal filing with the Securities & Exchange Commission, which is available at the SEC website. Company insiders own 12.50% of the company’s stock.

Institutional Trading of Red Cat

Several large investors have recently bought and sold shares of RCAT. Fifth Third Bancorp acquired a new position in Red Cat during the first quarter worth about $33,000. IFP Advisors Inc boosted its stake in shares of Red Cat by 181.1% in the 3rd quarter. IFP Advisors Inc now owns 2,670 shares of the company’s stock valued at $28,000 after purchasing an additional 1,720 shares in the last quarter. NFSG Corp boosted its stake in shares of Red Cat by 200.0% in the 1st 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. grew its holdings in shares of Red Cat by 294.6% during the 1st 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 during the last quarter. Finally, Bank of America Corp DE grew its holdings in shares of Red Cat by 407.0% during the 4th quarter. Bank of America Corp DE now owns 3,397 shares of the company’s stock valued at $44,000 after purchasing an additional 2,727 shares during the last quarter. 37.97% of the stock is owned by institutional investors and hedge funds.

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.