Bank of America Corp DE Acquires 864,910 Shares of Red Cat Holdings, Inc. $RCAT

Key Points

• Bank of America acquired 864,910 Red Cat shares during the second quarter, worth approximately $9.2 million and representing about 0.70% of the company. Institutional investors collectively own 37.97% of Red Cat.
• Analyst sentiment is broadly positive, with a consensus “Moderate Buy” rating and an average price target of $16.71, despite target reductions and a range of ratings from Sell to Strong Buy.
• Red Cat shares opened at $6.66, down 2.1%, after the company missed quarterly earnings and revenue expectations; insiders have also sold 225,000 shares worth about $2.0 million over the past 90 days.

Bank of America Corp DE acquired a new position in shares of Red Cat Holdings, Inc. (NASDAQ:RCAT - Free Report) during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund acquired 864,910 shares of the company's stock, valued at approximately $9,211,000. Bank of America Corp DE owned about 0.70% of Red Cat at the end of the most recent reporting period.

Other institutional investors and hedge funds also recently made changes to their positions in the company. CoreCap Advisors LLC boosted its position in Red Cat by 13.8% in the second quarter. CoreCap Advisors LLC now owns 9,039 shares of the company's stock worth $96,000 after purchasing an additional 1,095 shares during the last quarter. Western Wealth Management LLC raised its position in Red Cat by 4.5% in the first quarter. Western Wealth Management LLC now owns 36,722 shares of the company's stock worth $481,000 after acquiring an additional 1,570 shares during the period. Cambridge Investment Research Advisors Inc. boosted its stake in Red Cat by 1.2% in the second quarter. Cambridge Investment Research Advisors Inc. now owns 140,804 shares of the company's stock valued at $1,500,000 after acquiring an additional 1,608 shares during the last quarter. Wealthfront Advisers LLC increased its stake in shares of Red Cat by 15.7% during the 1st quarter. Wealthfront Advisers LLC now owns 12,959 shares of the company's stock worth $170,000 after purchasing an additional 1,754 shares during the last quarter. Finally, NFSG Corp raised 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 worth $39,000 after purchasing an additional 2,000 shares during the period. Hedge funds and other institutional investors own 37.97% of the company's stock.

Analysts Set New Price Targets

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

Insiders Place Their Bets

In other Red Cat news, Director Nicholas Liuzza, Jr. sold 55,000 shares of the firm's stock in a transaction dated Tuesday, August 11th. The stock was sold at an average price of $10.63, for a total value of $584,650.00. Following the sale, the director owned 489,874 shares of the company's stock, valued at $5,207,360.62. This trade represents a 10.09% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Christopher Moe sold 20,000 shares of the firm's stock in a transaction dated Tuesday, August 11th. The shares were sold at an average price of $10.51, for a total value of $210,200.00. Following the completion of the sale, 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 disclosure for this sale is available in the SEC filing. Insiders have sold 225,000 shares of company stock worth $1,955,850 in the last ninety days. 12.50% of the stock is currently owned by insiders.

Red Cat Trading Down 2.1%

Shares of Red Cat stock opened at $6.66 on Friday. The company's 50-day moving average price is $8.42 and its 200-day moving average price is $10.62. The company has a market cap of $817.45 million, a price-to-earnings ratio of -8.22 and a beta of 1.35. Red Cat Holdings, Inc. has a 12-month low of $5.77 and a 12-month high of $18.78.

Red Cat (NASDAQ:RCAT - Get Free Report) last posted 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). The firm had revenue of $20.20 million during the quarter, compared to analysts' expectations of $22.65 million. Red Cat had a negative return on equity of 32.25% and a negative net margin of 136.26%. On average, sell-side analysts predict that Red Cat Holdings, Inc. will post -0.79 earnings per share for the current year.

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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