Red Cat (NASDAQ:RCAT) Cut to Strong Sell at Zacks Research

Red Cat (NASDAQ:RCAT) was downgraded by research analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a note issued to investors on Monday, Zacks reports.

RCAT has been the subject of a number of other reports. Piper Sandler started coverage on shares of Red Cat in a report on Wednesday, September 2nd. They set a “neutral” rating and a $9.00 price target for the company. Needham & Company LLC cut their price target on shares of Red Cat from $20.00 to $15.00 and set a “buy” rating on the stock in a report on Friday, August 7th. Evercore started coverage on shares of Red Cat in a research report on Monday, August 31st. They issued an “outperform” rating and a $15.00 price objective on the stock. HC Wainwright restated a “buy” rating and issued a $20.00 price objective on shares of Red Cat in a research report on Friday, August 7th. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Red Cat in a research note on Friday, July 17th. Two analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating, one has assigned a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $16.71.

Red Cat Stock Performance

Shares of RCAT stock opened at $5.18 on Monday. The company has a market capitalization of $635.79 million, a P/E ratio of -6.40 and a beta of 1.51. Red Cat has a fifty-two week low of $5.14 and a fifty-two week high of $18.78. The stock has a 50 day moving average price of $8.01 and a two-hundred day moving average price of $9.79.

Red Cat (NASDAQ:RCAT) last issued its 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 return on equity of 32.25% and a negative net margin of 136.26%. The firm had revenue of $20.20 million during the quarter, compared to the consensus estimate of $22.65 million. As a group, equities analysts predict that Red Cat will post -0.79 earnings per share for the current year.

Insiders Place Their Bets

In other news, Director Christopher R. Moe sold 20,000 shares of the business’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 transaction, the director directly owned 200,502 shares of the company’s stock, valued at approximately $2,107,276.02. The trade was a 9.07% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Jeffrey M. Thompson sold 150,000 shares of the company’s stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $7.74, for a total value of $1,161,000.00. Following the transaction, the chief executive officer owned 11,712,202 shares of the company’s stock, valued at approximately $90,652,443.48. This represents a 1.26% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 225,000 shares of company stock worth $1,955,850. 12.50% of the stock is currently owned by company insiders.

Institutional Trading of Red Cat

Several large investors have recently added to or reduced their stakes in the stock. Allworth Financial LP purchased a new stake in Red Cat in the second quarter worth about $28,000. Fifth Third Bancorp bought a new stake in Red Cat during the 1st quarter valued at approximately $33,000. NFSG Corp boosted its position in Red Cat by 200.0% during 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 in the last quarter. PNC Financial Services Group Inc. boosted its position in Red Cat by 294.6% during the 1st quarter. PNC Financial Services Group Inc. now owns 3,042 shares of the company’s stock valued at $40,000 after acquiring an additional 2,271 shares in the last quarter. Finally, Integrated Wealth Concepts LLC purchased a new position in shares of Red Cat during the 2nd quarter worth approximately $42,000. Institutional investors own 37.97% of the company’s stock.

Red Cat Company Profile

Red Cat Holdings, Inc is a drone technology company that develops and supplies unmanned aircraft systems for defense, government, public safety and commercial applications. The company focuses on autonomous and remotely operated aerial systems designed to support intelligence, surveillance and reconnaissance missions, including operations in contested or GPS-denied environments.

Red Cat’s product portfolio includes the Teal 2 small unmanned aircraft system, a compact drone designed for close-range reconnaissance and situational awareness.