Red Cat (NASDAQ:RCAT) Shares Up 1.2% – What’s Next?

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s stock price shot up 1.2% during mid-day trading on Monday . The company traded as high as $8.98 and last traded at $8.59. 6,028,383 shares traded hands during trading, a decline of 55% from the average daily volume of 13,468,475 shares. The stock had previously closed at $8.49.

Analyst Ratings Changes

RCAT has been the subject of several recent research reports. Weiss Ratings reissued a “sell (d-)” rating on shares of Red Cat in a research note on Friday, July 17th. Needham & Company LLC cut their target price on shares of Red Cat from $20.00 to $15.00 and set a “buy” rating on the stock in a research note on Friday, August 7th. Roth Capital initiated coverage on shares of Red Cat in a report on Monday, June 1st. They set a “buy” rating and a $25.00 target price on the stock. LADENBURG THALM/SH SH raised shares of Red Cat to a “strong-buy” rating in a research report on Wednesday, May 6th. Finally, Wall Street Zen downgraded shares of Red Cat from a “sell” rating to a “strong sell” rating in a research note on Saturday, July 18th. Two investment analysts have rated the stock with a Strong Buy rating, five have given a Buy rating and one has given a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of “Buy” and a consensus target price of $19.50.

Red Cat Stock Performance

The business has a 50-day simple moving average of $9.10 and a 200-day simple moving average of $11.33. The company has a market cap of $1.05 billion, a price-to-earnings ratio of -10.60 and a beta of 1.32.

Red Cat (NASDAQ:RCAT) last announced its quarterly earnings data 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 company had revenue of $20.20 million for the quarter, compared to analyst estimates of $22.65 million. Research analysts anticipate that Red Cat Holdings, Inc. will post -0.78 EPS for the current 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 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 sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, Director Christopher R. Moe sold 20,000 shares of the firm’s stock in a transaction dated Tuesday, August 11th. The stock was 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 position. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 240,028 shares of company stock valued at $2,692,672. Insiders own 12.50% of the company’s stock.

Institutional Trading of Red Cat

Large investors have recently made changes to their positions in the company. Allworth Financial LP acquired a new position in Red Cat during the second quarter worth approximately $28,000. IFP Advisors Inc boosted its holdings in shares of Red Cat by 181.1% in the third quarter. IFP Advisors Inc now owns 2,670 shares of the company’s stock valued at $28,000 after acquiring an additional 1,720 shares during the period. Fifth Third Bancorp purchased a new position in shares of Red Cat during the first quarter worth approximately $33,000. California State Teachers Retirement System purchased a new position in shares of Red Cat during the second quarter worth approximately $34,000. Finally, NFSG Corp increased its holdings in shares of Red Cat by 200.0% in the 1st quarter. NFSG Corp now owns 3,000 shares of the company’s stock valued at $39,000 after acquiring an additional 2,000 shares during the period. 37.97% of the stock is owned by institutional investors and hedge funds.

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.