Red Cat (NASDAQ:RCAT) Rating Lowered to Strong Sell at Zacks Research

Red Cat (NASDAQ:RCAT) was downgraded by equities research analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a report issued on Monday, Zacks reports.

Several other research firms have also commented on RCAT. Northland Securities set a $13.00 price objective on shares of Red Cat in a research note on Thursday, September 17th. Wall Street Zen cut shares of Red Cat from a “sell” rating to a “strong sell” rating in a report on Saturday, July 18th. Piper Sandler assumed coverage on shares of Red Cat in a research note on Wednesday, September 2nd. They set a “neutral” rating and a $9.00 target price on the stock. HC Wainwright reiterated a “buy” rating and set a $20.00 target price on shares of Red Cat in a report on Friday, August 7th. Finally, Needham & Company LLC reduced their target price on shares of Red Cat from $20.00 to $15.00 and set a “buy” rating on the stock in a 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 two have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $16.71.

Red Cat Stock Down 3.9%

NASDAQ:RCAT opened at $5.18 on Monday. The stock’s fifty day moving average is $8.01 and its two-hundred day moving average is $9.79. Red Cat has a 52 week low of $5.14 and a 52 week high of $18.78. The stock has a market capitalization of $635.79 million, a price-to-earnings ratio of -6.40 and a beta of 1.51.

Red Cat (NASDAQ:RCAT) last released its quarterly 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 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. On average, sell-side analysts expect that Red Cat will post -0.79 EPS for the current fiscal year.

Insider Activity

In other Red Cat news, Director Christopher Moe sold 20,000 shares of Red Cat stock in a transaction on Tuesday, August 11th. The shares were sold at an average price of $10.51, for a total value of $210,200.00. Following the transaction, the director directly owned 200,502 shares in the company, valued at approximately $2,107,276.02. The trade was a 9.07% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Jeffrey Thompson sold 150,000 shares of the business’s stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $7.74, for a total value of $1,161,000.00. Following the completion of the transaction, the chief executive officer directly owned 11,712,202 shares in the company, valued at approximately $90,652,443.48. The trade was a 1.26% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 225,000 shares of company stock valued at $1,955,850 in the last ninety days. 12.50% of the stock is currently owned by company insiders.

Institutional Trading of Red Cat

Institutional investors have recently added to or reduced their stakes in the stock. Bouvel Investment Partners LLC increased its holdings in Red Cat by 117.9% in the third quarter. Bouvel Investment Partners LLC now owns 165,537 shares of the company’s stock valued at $1,069,000 after buying an additional 89,558 shares in the last quarter. Castle Rock Wealth Management LLC acquired a new stake in shares of Red Cat during the 3rd quarter valued at approximately $68,000. Post Resch Tallon Group Inc. lifted its position in shares of Red Cat by 8.9% during the 3rd quarter. Post Resch Tallon Group Inc. now owns 32,900 shares of the company’s stock valued at $213,000 after acquiring an additional 2,700 shares during the period. Farther Finance Advisors LLC boosted its stake in shares of Red Cat by 140.3% during the 3rd quarter. Farther Finance Advisors LLC now owns 18,417 shares of the company’s stock worth $119,000 after acquiring an additional 10,752 shares in the last quarter. Finally, Byrne Asset Management LLC boosted its stake in shares of Red Cat by 11.5% during the 3rd quarter. Byrne Asset Management LLC now owns 23,600 shares of the company’s stock worth $149,000 after acquiring an additional 2,440 shares in the last quarter. Hedge funds and other institutional investors own 37.97% of the company’s stock.

Red Cat Company Profile

Red Cat Holdings, Inc is a drone technology company that develops and supplies unmanned aircraft systems for defense, government, public safety and commercial applications. The company focuses on autonomous and remotely operated aerial systems designed to support intelligence, surveillance and reconnaissance missions, including operations in contested or GPS-denied environments.

Red Cat’s product portfolio includes the Teal 2 small unmanned aircraft system, a compact drone designed for close-range reconnaissance and situational awareness.