Red Cat Holdings, Inc. (NASDAQ:RCAT) Stock Has Average Target Price of $16.29

Key Points

• Analysts hold a “Moderate Buy” consensus on Red Cat, with five buy ratings, two strong-buy ratings, two sell ratings, and one hold rating. The average 12-month price target is $16.29, although Piper Sandler recently lowered its target to $6 and maintained a neutral rating.
• Red Cat shares opened at $4.43, near their 52-week low of $4.14 and well below the $18.78 high. The company’s latest quarterly results missed expectations, with an adjusted loss of $0.26 per share versus an expected loss of $0.21 and revenue of $20.2 million versus a $22.65 million estimate.
• Insiders sold 375,000 shares worth $2.63 million during the last quarter, while institutional ownership stands at 37.97%. State Street increased its stake substantially, and BlackRock and other institutional investors established new positions.

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) have been assigned a consensus rating of "Moderate Buy" from the ten brokerages that are covering the stock, Marketbeat reports. Two research analysts have rated the stock with a sell rating, one has given a hold rating, five have issued a buy rating and two have given a strong buy rating to the company. The average 1-year price target among brokers that have updated their coverage on the stock in the last year is $16.29.

A number of equities research analysts recently commented on RCAT shares. Piper Sandler decreased their target price on Red Cat from $9.00 to $6.00 and set a "neutral" rating for the company in a report on Friday. HC Wainwright restated a "buy" rating and issued a $20.00 price target on shares of Red Cat in a research report on Friday, August 7th. Northland Securities set a $13.00 target price on Red Cat in a research note on Thursday, September 17th. Needham & Company LLC reissued a "buy" rating and set a $15.00 price target on shares of Red Cat in a research note on Tuesday. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of Red Cat in a report on Thursday, October 15th.

Red Cat Stock Up 1.4%

Shares of RCAT opened at $4.43 on Friday. The business has a 50-day simple moving average of $7.17 and a two-hundred day simple moving average of $9.35. The stock has a market cap of $543.74 million, a price-to-earnings ratio of -5.47 and a beta of 1.51. Red Cat has a 52 week low of $4.14 and a 52 week high of $18.78.

Red Cat (NASDAQ:RCAT - Get Free Report) last released its quarterly earnings data 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 32.25%. The company had revenue of $20.20 million for the quarter, compared to the consensus estimate of $22.65 million. On average, equities analysts anticipate that Red Cat will post -0.79 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Red Cat news, CEO Jeffrey M. Thompson sold 150,000 shares of the stock in a transaction on Thursday, October 15th. The stock was sold at an average price of $4.51, for a total value of $676,500.00. Following the completion of the transaction, the chief executive officer owned 11,562,202 shares in the company, valued at approximately $52,145,531.02. This represents a 1.28% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Nicholas Reyland Liuzza, Jr. sold 55,000 shares of the stock in a transaction on Tuesday, August 11th. The stock was sold at an average price of $10.63, for a total value of $584,650.00. Following the completion of the sale, the director directly owned 489,874 shares in the company, valued at approximately $5,207,360.62. This represents a 10.09% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 375,000 shares of company stock valued at $2,632,350 over the last quarter. 12.50% of the stock is owned by company insiders.

Institutional Investors Weigh In On Red Cat

A number of large investors have recently added to or reduced their stakes in RCAT. State Street Corp grew its position in shares of Red Cat by 68.8% in the 2nd quarter. State Street Corp now owns 12,091,447 shares of the company's stock worth $128,774,000 after buying an additional 4,928,540 shares during the last quarter. BlackRock Inc. acquired a new position in Red Cat during the second quarter worth $119,610,000. Van ECK Associates Corp acquired a new stake in shares of Red Cat during the 2nd quarter worth about $27,193,000. Renaissance Technologies LLC acquired a new position in Red Cat in the 1st quarter valued at about $18,533,000. Finally, AWM Investment Company Inc. purchased a new stake in Red Cat during the 2nd quarter worth about $9,313,000. 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 provides unmanned aircraft systems, software, and related services for defense, public safety, and commercial applications. Its solutions are designed to support intelligence, surveillance, reconnaissance, and situational-awareness missions in demanding operating environments.

Through its Teal Drones subsidiary, Red Cat offers small unmanned aircraft systems such as the Teal 2, a compact drone designed for nighttime operations and short-range reconnaissance.

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