Bank of New York Mellon Corp Invests $4.05 Million in Red Cat Holdings, Inc. $RCAT

Key Points

• Bank of New York Mellon bought 380,425 Red Cat shares worth approximately $4.05 million, giving it a 0.31% stake; institutional investors collectively own 37.97% of the company.
• Red Cat insiders have recently sold shares, including directors Christopher Moe and Nicholas Liuzza, while insiders have sold 240,028 shares worth $2.69 million over the past 90 days.
• Analyst sentiment remains mixed but leans positive, with a consensus “Moderate Buy” rating and an $18 price target. However, the company missed quarterly earnings and revenue estimates, reporting a $0.26 per-share loss and $20.2 million in revenue.

Bank of New York Mellon Corp bought a new position in Red Cat Holdings, Inc. (NASDAQ:RCAT - Free Report) in the second quarter, according to its most recent filing with the SEC. The firm bought 380,425 shares of the company's stock, valued at approximately $4,052,000. Bank of New York Mellon Corp owned approximately 0.31% of Red Cat as of its most recent SEC filing.

A number of other hedge funds have also bought and sold shares of the stock. State of Wyoming purchased a new position in shares of Red Cat during the second quarter worth $78,000. Mirabella Financial Services LLP purchased a new position in shares of Red Cat during the 2nd quarter valued at approximately $170,000. Kornitzer Capital Management Inc. KS grew its position in shares of Red Cat by 20.1% in the second quarter. Kornitzer Capital Management Inc. KS now owns 105,004 shares of the company's stock valued at $1,118,000 after purchasing an additional 17,606 shares during the period. Kovack Advisors Inc. purchased a new stake in Red Cat during the 2nd quarter worth approximately $110,000. Finally, Cambridge Investment Research Advisors Inc. increased its position in shares of Red Cat by 1.2% during the second quarter. Cambridge Investment Research Advisors Inc. now owns 140,804 shares of the company's stock worth $1,500,000 after purchasing an additional 1,608 shares in the last quarter. Institutional investors and hedge funds own 37.97% of the company's stock.

Insider Activity at Red Cat

In related news, Director Christopher R. Moe sold 20,000 shares of Red Cat stock in a transaction on Tuesday, August 11th. The shares were sold at an average price of $10.51, for a total transaction of $210,200.00. Following the sale, the director owned 200,502 shares of the company's stock, valued at $2,107,276.02. The trade was a 9.07% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Nicholas Reyland Liuzza, Jr. sold 55,000 shares of the stock in a transaction dated Tuesday, August 11th. The shares were sold at an average price of $10.63, for a total value of $584,650.00. Following the completion of the transaction, the director directly owned 489,874 shares of the company's stock, valued at $5,207,360.62. This represents a 10.09% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 240,028 shares of company stock worth $2,692,672. 12.50% of the stock is currently owned by corporate insiders.

Analyst Upgrades and Downgrades

A number of research firms have commented on RCAT. Needham & Company LLC cut their price objective on shares of Red Cat from $20.00 to $15.00 and set a "buy" rating for the company in a report on Friday, August 7th. Weiss Ratings reissued a "sell (d-)" rating on shares of Red Cat in a research report on Friday, July 17th. Roth Capital initiated coverage on shares of Red Cat in a research note on Monday, June 1st. They issued a "buy" rating and a $25.00 price target for the company. Wall Street Zen cut shares of Red Cat from a "sell" rating to a "strong sell" rating in a report on Saturday, July 18th. Finally, Piper Sandler assumed coverage on Red Cat in a report on Wednesday. They set a "neutral" rating and a $9.00 price target for the company. Two research analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Red Cat has a consensus rating of "Moderate Buy" and a consensus price target of $18.00.

Red Cat Price Performance

Shares of Red Cat stock opened at $8.37 on Friday. Red Cat Holdings, Inc. has a 1 year low of $5.77 and a 1 year high of $18.78. The business has a 50 day moving average price of $8.98 and a 200 day moving average price of $11.21. The company has a market capitalization of $1.03 billion, a P/E ratio of -10.33 and a beta of 1.35.

Red Cat (NASDAQ:RCAT - Get Free Report) last released its earnings results on Thursday, August 6th. The company reported ($0.26) 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 during the quarter, compared to analyst estimates of $22.65 million. As a group, research analysts expect that Red Cat Holdings, Inc. will post -0.77 EPS for the current fiscal year.

Red Cat Profile

Red Cat Holdings, Inc NASDAQ: RCAT is a technology holding company that develops and delivers advanced robotics, autonomy, and sensing solutions for defense, national security, public safety and commercial customers. Headquartered in American Fork, Utah, the company brings together a portfolio of specialized operating businesses focused on unmanned aerial systems (UAS), mission management software, precision mapping sensors and engineering services.

Through its UAS segment, Red Cat designs and manufactures small to medium-sized fixed-wing and vertical-takeoff drones that support intelligence, surveillance and reconnaissance (ISR) missions.

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