BlackRock Inc. Acquires Shares of 11,230,987 Red Cat Holdings, Inc. $RCAT

Key Points

• BlackRock acquired 11.23 million Red Cat shares worth approximately $119.6 million, giving it a 9.15% stake. Institutional investors and hedge funds collectively owned 37.97% of the company.
• Red Cat’s latest quarterly results fell short of expectations, with a loss of $0.26 per share versus the expected $0.21 loss and revenue of $20.2 million versus estimates of $22.65 million.
• RCAT shares opened at $8.49, down 8.5%, while analyst sentiment remained mixed but averaged a “Buy” rating with a $20.40 price target. Meanwhile, company insiders sold 240,028 shares worth $2.69 million over the past three months.

BlackRock Inc. bought a new position in Red Cat Holdings, Inc. (NASDAQ:RCAT - Free Report) during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund bought 11,230,987 shares of the company's stock, valued at approximately $119,610,000. BlackRock Inc. owned approximately 9.15% of Red Cat at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. Fifth Third Bancorp bought a new stake in shares of Red Cat during the first quarter valued at approximately $33,000. IFP Advisors Inc boosted its holdings in Red Cat by 181.1% in the third quarter. IFP Advisors Inc now owns 2,670 shares of the company's stock valued at $28,000 after acquiring an additional 1,720 shares during the last quarter. NFSG Corp increased its position in Red Cat by 200.0% in the first 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. PNC Financial Services Group Inc. raised its holdings 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 purchasing an additional 2,271 shares during the last quarter. Finally, Bank of America Corp DE lifted its position in Red Cat by 407.0% during the 4th quarter. Bank of America Corp DE now owns 3,397 shares of the company's stock valued at $44,000 after purchasing an additional 2,727 shares during the period. 37.97% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling at Red Cat

In other Red Cat news, Director Nicholas Reyland Liuzza, Jr. sold 55,000 shares of Red Cat 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 transaction, the director directly owned 489,874 shares of the company's stock, valued at $5,207,360.62. The trade was a 10.09% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Christopher R. Moe sold 20,000 shares of the company's stock in a transaction on Tuesday, August 11th. The shares were sold at an average price of $10.51, for a total value of $210,200.00. Following the sale, the director owned 200,502 shares of the company's stock, valued at approximately $2,107,276.02. The trade was a 9.07% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 240,028 shares of company stock valued at $2,692,672 in the last three months. Corporate insiders own 12.50% of the company's stock.

Wall Street Analyst Weigh In

RCAT has been the topic of a number of recent research reports. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Red Cat in a research note on Friday, July 17th. Needham & Company LLC decreased 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. Wall Street Zen lowered Red Cat from a "sell" rating to a "strong sell" rating in a research note on Saturday, July 18th. Roth Capital initiated coverage on Red Cat in a report on Monday, June 1st. They set a "buy" rating and a $25.00 target price on the stock. Finally, LADENBURG THALM/SH SH raised Red Cat to a "strong-buy" rating in a research note on Wednesday, May 6th. Two analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Buy" and an average price target of $20.40.

Red Cat Stock Down 8.5%

NASDAQ:RCAT opened at $8.49 on Friday. The company has a market cap of $1.04 billion, a P/E ratio of -10.48 and a beta of 1.31. Red Cat Holdings, Inc. has a twelve month low of $5.77 and a twelve month high of $18.78. The business has a 50 day moving average price of $9.10 and a two-hundred day moving average price of $11.34.

Red Cat (NASDAQ:RCAT - Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The company reported ($0.26) EPS for the quarter, missing analysts' consensus estimates 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 firm had revenue of $20.20 million during the quarter, compared to analyst estimates of $22.65 million. As a group, analysts anticipate that Red Cat Holdings, Inc. will post -0.78 earnings per share for the current fiscal year.

Red Cat Company 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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