Red Cat (NASDAQ:RCAT) Shares Up 6.6% – Still a Buy?

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s share price traded up 6.6% during trading on Tuesday . The stock traded as high as $10.68 and last traded at $10.66. 11,602,657 shares traded hands during mid-day trading, a decline of 17% from the average daily volume of 13,967,855 shares. The stock had previously closed at $10.00.

Analyst Upgrades and Downgrades

Several research analysts have issued reports on the company. Needham & Company LLC reduced their price objective on Red Cat from $20.00 to $15.00 and set a “buy” rating on the stock in a report on Friday, August 7th. Weiss Ratings restated a “sell (d-)” rating on shares of Red Cat in a research report on Friday, July 17th. Wall Street Zen lowered Red Cat from a “sell” rating to a “strong sell” rating in a research note on Saturday, July 18th. UBS Group started coverage on Red Cat in a report on Wednesday, May 27th. They issued a “buy” rating on the stock. Finally, Roth Capital initiated coverage on Red Cat in a research report on Monday, June 1st. They issued a “buy” rating and a $25.00 price objective for the company. Two equities research analysts have rated the stock with a Strong Buy rating, four have issued a Buy rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, Red Cat presently has an average rating of “Buy” and a consensus target price of $20.40.

Red Cat Stock Down 0.8%

The firm has a market cap of $1.26 billion, a price-to-earnings ratio of -12.87 and a beta of 1.31. The company’s fifty day moving average is $9.64 and its 200 day moving average is $11.70.

Red Cat (NASDAQ:RCAT) last issued 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 net margin of 136.26% and a negative return on equity of 39.64%. The business had revenue of $20.20 million during the quarter, compared to analyst estimates of $22.65 million. On average, equities research analysts forecast that Red Cat Holdings, Inc. will post -0.76 EPS for the current fiscal year.

Insider Activity

In related news, Director Paul Funk II sold 165,028 shares of the company’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 document filed with the SEC, which is available at this hyperlink. Corporate insiders own 12.50% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in RCAT. Sanctuary Advisors LLC acquired a new stake in shares of Red Cat in the 2nd quarter valued at approximately $117,000. Connor Clark & Lunn Investment Management Ltd. acquired a new position in Red Cat during the second quarter worth $164,000. Quantbot Technologies LP acquired a new position in Red Cat during the second quarter worth $47,000. Fund Advisors of America Inc FL bought a new stake in Red Cat during the second quarter worth $377,000. Finally, Allworth Financial LP bought a new stake in Red Cat during the second quarter worth $28,000. 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.