Red Cat (NASDAQ:RCAT) Stock Price Up 3.2% – Here’s What Happened

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) traded up 3.2% on Thursday. The stock traded as high as $6.83 and last traded at $6.80. Approximately 8,387,248 shares changed hands during mid-day trading, a decline of 36% from the average daily volume of 13,064,729 shares. The stock had previously closed at $6.59.

Analyst Upgrades and Downgrades

RCAT has been the subject of several recent analyst reports. UBS Group initiated coverage on shares of Red Cat in a research note on Wednesday, May 27th. They set a “buy” rating for the company. Wall Street Zen lowered Red Cat from a “sell” rating to a “strong sell” rating in a research report on Saturday, July 18th. Northland Securities set a $13.00 target price on Red Cat in a research report on Thursday, September 17th. Evercore started coverage on shares of Red Cat in a report on Monday, August 31st. They issued an “outperform” rating and a $15.00 price objective for the company. Finally, Needham & Company LLC lowered their price objective on Red Cat from $20.00 to $15.00 and set a “buy” rating for the company in a research report on Friday, August 7th. Two investment analysts have rated the stock with a Strong Buy rating, five have given a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, Red Cat presently has a consensus rating of “Moderate Buy” and an average price target of $16.71.

Red Cat Price Performance

The firm has a market cap of $834.65 million, a PE ratio of -8.40 and a beta of 1.35. The business has a fifty day moving average price of $8.46 and a two-hundred day moving average price of $10.71.

Red Cat (NASDAQ:RCAT) last released its quarterly earnings data 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 during the quarter, compared to the consensus estimate of $22.65 million. Red Cat had a negative net margin of 136.26% and a negative return on equity of 32.25%. As a group, sell-side analysts forecast that Red Cat Holdings, Inc. will post -0.79 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CEO Jeffrey Thompson sold 150,000 shares of Red Cat stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $7.74, for a total value of $1,161,000.00. Following the completion of the transaction, the chief executive officer directly owned 11,712,202 shares of the company’s stock, valued at approximately $90,652,443.48. This trade represents a 1.26% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Christopher Moe sold 20,000 shares of the business’s stock in a transaction on Tuesday, August 11th. The stock was sold at an average price of $10.51, for a total value of $210,200.00. Following the completion of the transaction, the director directly owned 200,502 shares in the company, valued at approximately $2,107,276.02. This represents a 9.07% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 225,000 shares of company stock valued at $1,955,850 in the last ninety days. 12.50% of the stock is currently owned by insiders.

Institutional Trading of Red Cat

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Fifth Third Bancorp purchased a new stake in Red Cat during the first quarter worth $33,000. Allworth Financial LP purchased a new stake in shares of Red Cat in the 2nd quarter valued at $28,000. NFSG Corp grew its holdings in Red Cat by 200.0% during the 1st quarter. NFSG Corp now owns 3,000 shares of the company’s stock worth $39,000 after acquiring an additional 2,000 shares in the last quarter. PNC Financial Services Group Inc. grew its stake 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 worth $40,000 after buying an additional 2,271 shares during the last quarter. Finally, KBC Group NV acquired a new stake in Red Cat in the first quarter valued at about $45,000. Hedge funds and other institutional investors own 37.97% of the company’s stock.

About Red Cat

Red Cat Holdings, Inc is a drone technology company that develops and supplies small unmanned aircraft systems for military, government, public safety and commercial applications. Its solutions are designed to support intelligence, surveillance and reconnaissance, situational awareness, and other missions requiring portable and rapidly deployable aerial systems.

Through its Teal Drones business, Red Cat offers the Teal 2 and related Black Widow systems, compact drones designed for defense and public-safety users.