Red Cat (NASDAQ:RCAT) Trading Up 9.7% – Here’s What Happened

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s stock price rose 9.7% during trading on Monday . The company traded as high as $8.28 and last traded at $8.26. Approximately 9,071,476 shares were traded during mid-day trading, a decline of 35% from the average daily volume of 14,051,607 shares. The stock had previously closed at $7.53.

Analyst Upgrades and Downgrades

Several equities analysts have issued reports on the company. Wall Street Zen lowered Red Cat from a “sell” rating to a “strong sell” rating in a report on Saturday, July 18th. LADENBURG THALM/SH SH raised shares of Red Cat to a “strong-buy” rating in a report on Wednesday, May 6th. Clear Str upgraded shares of Red Cat to a “strong-buy” rating in a research note on Wednesday, April 29th. Roth Capital initiated coverage on Red Cat in a research note on Monday, June 1st. They set a “buy” rating and a $25.00 price objective for the company. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of Red Cat in a research note on Friday, July 17th. Two analysts have rated the stock with a Strong Buy rating, four have given a Buy rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Buy” and a consensus price target of $21.40.

Red Cat Stock Performance

The stock’s fifty day simple moving average is $10.18 and its two-hundred day simple moving average is $11.99. The company has a market capitalization of $1.01 billion, a price-to-earnings ratio of -11.80 and a beta of 1.29.

Red Cat (NASDAQ:RCAT) last posted its quarterly earnings results on Thursday, May 7th. The company reported ($0.22) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.12) by ($0.10). The business had revenue of $15.47 million during the quarter, compared to analyst estimates of $17.63 million. Red Cat had a negative return on equity of 35.86% and a negative net margin of 138.36%.The business’s revenue for the quarter was up 849.1% compared to the same quarter last year. On average, equities analysts anticipate that Red Cat Holdings, Inc. will post -0.68 EPS for the current fiscal year.

Insider Transactions at Red Cat

In other Red Cat news, Director Paul Funk II sold 165,028 shares of the business’s stock in a transaction dated 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 is available at this hyperlink. Insiders own 12.50% of the company’s stock.

Hedge Funds Weigh In On Red Cat

Several institutional investors and hedge funds have recently added to or reduced their stakes in RCAT. Arizona State Retirement System lifted its holdings in shares of Red Cat by 3.0% in the fourth quarter. Arizona State Retirement System now owns 29,311 shares of the company’s stock valued at $232,000 after purchasing an additional 855 shares in the last quarter. CoreCap Advisors LLC grew 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 in the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. raised its position in Red Cat by 0.7% during the fourth quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 167,084 shares of the company’s stock valued at $1,325,000 after buying an additional 1,147 shares during the period. Advisory Services Network LLC raised its position in Red Cat by 5.3% during the third quarter. Advisory Services Network LLC now owns 30,200 shares of the company’s stock valued at $313,000 after buying an additional 1,507 shares during the period. Finally, Western Wealth Management LLC lifted its stake in Red Cat by 4.5% in the 1st quarter. Western Wealth Management LLC now owns 36,722 shares of the company’s stock worth $481,000 after acquiring an additional 1,570 shares in 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.