Stock Traders Purchase High Volume of Red Cat Call Options (NASDAQ:RCAT)

Red Cat Holdings, Inc. (NASDAQ:RCAT) was the target of some unusual options trading on Monday. Traders bought 52,096 call options on the company. This represents an increase of 92% compared to the typical volume of 27,070 call options.

Analyst Upgrades and Downgrades

RCAT has been the topic of a number of research analyst reports. Roth Capital initiated coverage on shares of Red Cat in a research note on Monday, June 1st. They issued a “buy” rating and a $25.00 price target on the stock. Needham & Company LLC decreased their price objective on shares of Red Cat from $20.00 to $15.00 and set a “buy” rating on the stock in a report on Friday. Clear Str upgraded shares of Red Cat to a “strong-buy” rating in a research report on Wednesday, April 29th. HC Wainwright reissued a “buy” rating and set a $20.00 target price on shares of Red Cat in a research note on Friday. Finally, UBS Group began coverage on shares of Red Cat in a research note on Wednesday, May 27th. They issued a “buy” rating on the stock. Two research analysts have rated the stock with a Strong Buy rating, four have given a Buy rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, Red Cat presently has an average rating of “Buy” and an average target price of $20.40.

Insider Activity at Red Cat

In other news, Director Paul Funk II sold 165,028 shares of the company’s 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 filing with the Securities & Exchange Commission, which is available through this hyperlink. 12.50% of the stock is owned by company insiders.

Hedge Funds Weigh In On Red Cat

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. BlackRock Inc. purchased a new stake in Red Cat in the 2nd quarter valued at $119,610,000. State Street Corp boosted its position in shares of Red Cat by 136.4% during the 4th quarter. State Street Corp now owns 6,612,153 shares of the company’s stock valued at $52,434,000 after acquiring an additional 3,815,310 shares during the last quarter. Vanguard Group Inc. grew its holdings 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 valued at $47,580,000 after purchasing an additional 493,660 shares during the period. Geode Capital Management LLC grew its holdings in shares of Red Cat by 13.4% in the fourth quarter. Geode Capital Management LLC now owns 2,520,524 shares of the company’s stock valued at $19,991,000 after purchasing an additional 297,967 shares during the period. Finally, Davidson Kempner Capital Management LP acquired a new stake in Red Cat during the third quarter worth about $17,286,000. Institutional investors and hedge funds own 37.97% of the company’s stock.

Red Cat Price Performance

NASDAQ RCAT traded up $0.73 during trading hours on Monday, hitting $9.94. 12,885,134 shares of the company’s stock traded hands, compared to its average volume of 13,952,330. The company has a market capitalization of $1.22 billion, a PE ratio of -12.24 and a beta of 1.32. Red Cat has a 52-week low of $5.77 and a 52-week high of $18.78. The firm’s 50-day moving average is $9.89 and its 200-day moving average is $11.82.

Red Cat (NASDAQ:RCAT) last issued its earnings results on Thursday, August 6th. The company reported ($0.26) earnings per share for the quarter, missing the consensus estimate of ($0.21) by ($0.05). The company had revenue of $20.20 million for the quarter, compared to analyst estimates of $22.65 million. Red Cat had a negative return on equity of 39.64% and a negative net margin of 136.26%. Equities research analysts predict that Red Cat will post -0.68 earnings per share for the current fiscal year.

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.