Red Cat (NASDAQ:RCAT) Downgraded to Strong Sell Rating by Wall Street Zen

Wall Street Zen lowered shares of Red Cat (NASDAQ:RCAT) from a sell rating to a strong sell rating in a research report sent to investors on Saturday.

A number of other research firms have also recently issued reports on RCAT. UBS Group assumed coverage on shares of Red Cat in a research report on Wednesday, May 27th. They set a “buy” rating on the stock. HC Wainwright started coverage on Red Cat in a research note on Wednesday, May 27th. They set a “buy” rating and a $20.00 price target on the stock. Weiss Ratings reiterated a “sell (d-)” rating on shares of Red Cat in a report on Tuesday, April 21st. LADENBURG THALM/SH SH upgraded Red Cat to a “strong-buy” rating in a report on Wednesday, May 6th. Finally, Roth Capital initiated coverage on Red Cat in a research note on Monday, June 1st. They issued a “buy” rating and a $25.00 price objective for the company. Two investment analysts have rated the stock with a Strong Buy rating, four have issued a Buy rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Buy” and a consensus target price of $21.40.

Red Cat Stock Performance

Shares of RCAT opened at $7.64 on Friday. The firm has a market cap of $937.73 million, a PE ratio of -10.91 and a beta of 1.29. Red Cat has a 52-week low of $5.77 and a 52-week high of $18.78. The business’s 50 day moving average price is $10.56 and its two-hundred day moving average price is $12.13.

Red Cat (NASDAQ:RCAT) last released its earnings results on Thursday, May 7th. The company reported ($0.22) earnings per share (EPS) 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 analyst estimates 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 was up 849.1% on a year-over-year basis. Research analysts predict that Red Cat will post -0.67 EPS for the current fiscal year.

Insider Buying and Selling 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 transaction of $1,897,822.00. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. 12.50% of the stock is owned by corporate insiders.

Institutional Trading of Red Cat

Several institutional investors have recently made changes to their positions in RCAT. Tudor Investment Corp ET AL lifted its position in Red Cat by 214.0% in the third quarter. Tudor Investment Corp ET AL now owns 1,277,523 shares of the company’s stock valued at $13,222,000 after purchasing an additional 870,612 shares during the last quarter. EVR Research LP bought a new position in shares of Red Cat in the fourth quarter worth approximately $1,705,000. Caitong International Asset Management Co. Ltd increased its stake in shares of Red Cat by 1,825.1% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 54,152 shares of the company’s stock worth $429,000 after buying an additional 51,339 shares during the period. Vanguard Group Inc. increased its stake in shares of Red Cat by 9.0% in the fourth quarter. Vanguard Group Inc. now owns 6,000,037 shares of the company’s stock worth $47,580,000 after buying an additional 493,660 shares during the period. Finally, UBS Group AG raised its holdings in Red Cat by 37.7% during the 4th quarter. UBS Group AG now owns 580,099 shares of the company’s stock valued at $4,600,000 after buying an additional 158,864 shares during the last quarter. Institutional investors own 37.97% of the company’s stock.

About Red Cat

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.