Red Cat Holdings, Inc. (NASDAQ:RCAT) Stock Has Consensus Target Price of $16.71 According to Analysts

Key Points

• Analysts hold a “Moderate Buy” consensus on Red Cat, with five buy, two strong-buy, one hold and one sell rating. The average 12-month price target is $16.71, though recent targets range from $9 to $25.
• Red Cat shares opened at $6.50, down 2.4%, and remain well below their 52-week high of $18.78. The company’s latest quarterly results missed expectations, reporting a $0.26 per-share loss and $20.2 million in revenue versus the $22.65 million consensus estimate.
• Insiders sold 225,000 shares worth approximately $1.96 million over the past three months, while institutional ownership stands at 37.97%; State Street increased its stake by 68.8% during the second quarter.

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) have been given a consensus recommendation of "Moderate Buy" by the nine ratings firms that are presently covering the stock, MarketBeat Ratings reports. One research analyst has rated the stock with a sell recommendation, one has given a hold recommendation, five have assigned a buy recommendation and two have assigned a strong buy recommendation to the company. The average twelve-month price target among brokerages that have issued a report on the stock in the last year is $16.71.

A number of research firms have recently weighed in on RCAT. Needham & Company LLC dropped their price objective on Red Cat from $20.00 to $15.00 and set a "buy" rating for the company in a research note on Friday, August 7th. HC Wainwright reaffirmed a "buy" rating and set a $20.00 price objective on shares of Red Cat in a research note on Friday, August 7th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Red Cat in a report on Friday, July 17th. Piper Sandler assumed coverage on Red Cat in a research note on Wednesday, September 2nd. They issued a "neutral" rating and a $9.00 target price on the stock. Finally, Roth Capital started coverage on Red Cat in a report on Monday, June 1st. They set a "buy" rating and a $25.00 price target on the stock.

Red Cat Stock Down 2.4%

Shares of NASDAQ:RCAT opened at $6.50 on Tuesday. The stock has a market cap of $797.81 million, a PE ratio of -8.02 and a beta of 1.35. The company's fifty day moving average is $8.40 and its 200 day moving average is $10.54. Red Cat has a 52 week low of $5.77 and a 52 week high of $18.78.

Red Cat (NASDAQ:RCAT - Get Free Report) last posted its quarterly 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 net margin of 136.26% and a negative return on equity of 32.25%. The business had revenue of $20.20 million for the quarter, compared to analysts' expectations of $22.65 million. Sell-side analysts anticipate that Red Cat will post -0.79 EPS for the current year.

Insider Transactions at Red Cat

In other news, CEO Jeffrey Thompson sold 150,000 shares of Red Cat stock in a transaction that occurred on 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 sale, the chief executive officer directly owned 11,712,202 shares in the company, valued at approximately $90,652,443.48. This trade represents a 1.26% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Nicholas Liuzza, Jr. sold 55,000 shares of the business's stock in a transaction that occurred on Tuesday, August 11th. The shares were sold at an average price of $10.63, for a total value of $584,650.00. Following the transaction, the director directly owned 489,874 shares in the company, valued at $5,207,360.62. This trade represents a 10.09% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 225,000 shares of company stock worth $1,955,850. 12.50% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the stock. State Street Corp boosted its stake in shares of Red Cat by 68.8% during the 2nd quarter. State Street Corp now owns 12,091,447 shares of the company's stock valued at $128,774,000 after purchasing an additional 4,928,540 shares in the last quarter. The Manufacturers Life Insurance Company increased its position in shares of Red Cat by 4.2% during the second quarter. The Manufacturers Life Insurance Company now owns 49,008 shares of the company's stock valued at $522,000 after buying an additional 1,961 shares during the period. WINTON GROUP Ltd raised its stake in Red Cat by 289.5% in the second quarter. WINTON GROUP Ltd now owns 107,890 shares of the company's stock worth $1,149,000 after buying an additional 80,190 shares in the last quarter. Integrated Wealth Concepts LLC bought a new position in Red Cat in the second quarter worth about $42,000. Finally, Arizona State Retirement System lifted its holdings in Red Cat by 23.4% in the second quarter. Arizona State Retirement System now owns 36,426 shares of the company's stock worth $388,000 after buying an additional 6,917 shares during the period. 37.97% of the stock is currently owned by institutional investors.

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.

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