Red Cat (NASDAQ:RCAT) Trading 3.9% Higher – What’s Next?

Red Cat Holdings, Inc. (NASDAQ:RCAT) shares rose 3.9% during mid-day trading on Thursday . The company traded as high as $9.43 and last traded at $9.28. 4,989,681 shares traded hands during trading, a decline of 63% from the average session volume of 13,550,979 shares. The stock had previously closed at $8.93.

Wall Street Analyst Weigh In

Several equities analysts recently commented on the company. Roth Capital began coverage on Red Cat in a research report on Monday, June 1st. They set a “buy” rating and a $25.00 target price for the company. Wall Street Zen cut shares of Red Cat from a “sell” rating to a “strong sell” rating in a research report on Saturday, July 18th. Weiss Ratings reissued a “sell (d-)” rating on shares of Red Cat in a report on Friday, July 17th. Needham & Company LLC decreased their target price on Red Cat from $20.00 to $15.00 and set a “buy” rating for the company in a report on Friday, August 7th. Finally, LADENBURG THALM/SH SH upgraded Red Cat to a “strong-buy” rating in a report on Wednesday, May 6th. Two equities research analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Buy” and a consensus target price of $20.40.

Red Cat Trading Up 3.9%

The stock has a 50 day simple moving average of $9.21 and a 200-day simple moving average of $11.39. The firm has a market capitalization of $1.14 billion, a P/E ratio of -11.46 and a beta of 1.31.

Red Cat (NASDAQ:RCAT) last released its earnings results on Thursday, August 6th. The company reported ($0.26) EPS for the quarter, missing analysts’ consensus estimates 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 the consensus estimate of $22.65 million. As a group, sell-side analysts expect that Red Cat Holdings, Inc. will post -0.78 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, Director Christopher R. Moe sold 20,000 shares of the firm’s stock in a transaction that occurred 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 completion of the sale, the director directly owned 200,502 shares of the company’s stock, valued at approximately $2,107,276.02. This trade represents a 9.07% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Paul Funk II sold 165,028 shares of the business’s stock in a transaction on Thursday, June 11th. The shares were sold at an average price of $11.50, for a total transaction of $1,897,822.00. The disclosure for this sale is available in the SEC filing. Insiders sold 240,028 shares of company stock valued at $2,692,672 in the last three months. Corporate insiders own 12.50% of the company’s stock.

Institutional Trading of Red Cat

Large investors have recently modified their holdings of the company. Bank of America Corp DE grew its holdings in Red Cat by 407.0% during the 4th quarter. Bank of America Corp DE now owns 3,397 shares of the company’s stock worth $44,000 after acquiring an additional 2,727 shares in the last quarter. Royal Bank of Canada lifted its position in Red Cat by 76.4% during the 1st quarter. Royal Bank of Canada now owns 57,800 shares of the company’s stock worth $340,000 after acquiring an additional 25,031 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in Red Cat by 63.6% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 229,259 shares of the company’s stock valued at $1,348,000 after buying an additional 89,095 shares during the last quarter. Goldman Sachs Group Inc. increased its stake in shares of Red Cat by 28.7% in the first quarter. Goldman Sachs Group Inc. now owns 266,099 shares of the company’s stock worth $1,565,000 after acquiring an additional 59,334 shares during the period. Finally, Cetera Investment Advisers acquired a new stake in Red Cat during the 2nd quarter worth about $97,000. Hedge funds and other institutional investors 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.