Red Cat (NASDAQ:RCAT) Trading Up 2.6% – What’s Next?

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

Analysts Set New Price Targets

A number of research firms recently weighed in on RCAT. Piper Sandler began coverage on shares of Red Cat in a research report on Wednesday. They set a “neutral” rating and a $9.00 price objective for the company. HC Wainwright reissued a “buy” rating and issued a $20.00 target price on shares of Red Cat in a research report on Friday, August 7th. Needham & Company LLC decreased their price target on Red Cat from $20.00 to $15.00 and set a “buy” rating on the stock in a research note on Friday, August 7th. Evercore started coverage on Red Cat in a research report on Monday. They set an “outperform” rating and a $15.00 price target for the company. Finally, UBS Group started coverage on Red Cat in a research note on Wednesday, May 27th. They issued a “buy” rating for the company. 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 assigned a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $18.00.

Red Cat Stock Up 2.6%

The firm has a market cap of $1.05 billion, a PE ratio of -10.54 and a beta of 1.35. The company’s fifty day moving average price is $9.00 and its two-hundred day moving average price is $11.25.

Red Cat (NASDAQ:RCAT) last posted its quarterly earnings results on Thursday, August 6th. The company reported ($0.26) earnings per share (EPS) 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 firm had revenue of $20.20 million for the quarter, compared to analysts’ expectations of $22.65 million. As a group, analysts predict that Red Cat Holdings, Inc. will post -0.78 earnings per share for the current year.

Insider Transactions at Red Cat

In related news, Director Paul Funk, II sold 165,028 shares of Red Cat stock in a transaction that occurred on Thursday, June 11th. The stock was sold at an average price of $11.50, for a total value of $1,897,822.00. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Christopher R. Moe sold 20,000 shares of the business’s stock in a transaction on Tuesday, August 11th. The stock was sold at an average price of $10.51, for a total transaction of $210,200.00. Following the sale, the director owned 200,502 shares in the company, valued at $2,107,276.02. The trade was a 9.07% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 240,028 shares of company stock valued at $2,692,672. Corporate insiders own 12.50% of the company’s stock.

Institutional Trading of Red Cat

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Sei Investments Co. acquired a new position in shares of Red Cat during the 1st quarter worth approximately $2,328,000. Janus Henderson Group PLC grew its holdings in Red Cat by 733.7% during the 1st quarter. Janus Henderson Group PLC now owns 392,808 shares of the company’s stock valued at $5,141,000 after buying an additional 345,693 shares during the last quarter. BlackRock Inc. purchased a new position in Red Cat during the second quarter worth $119,610,000. EVR Research LP purchased a new position in Red Cat during the fourth quarter worth $1,705,000. Finally, Deutsche Bank AG purchased a new position in Red Cat during the second quarter worth $1,270,000. Institutional investors and hedge funds own 37.97% of the company’s stock.

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.