Empowered Funds LLC Invests $3.82 Million in Red Cat Holdings, Inc. $RCAT

Key Points

• Empowered Funds LLC acquired 358,352 Red Cat shares worth approximately $3.82 million during the second quarter, giving it a 0.29% stake. Institutional investors collectively own 37.97% of the company.
• Red Cat shares opened at $8.25, down 4%, and remain well below their 12-month high of $18.78. The company recently missed quarterly earnings and revenue expectations, reporting a loss of $0.26 per share on $20.2 million in revenue.
• Analyst sentiment remains broadly positive, with a consensus “Buy” rating and a $19.50 price target, although insiders sold 240,028 shares worth about $2.69 million over the past 90 days.

Empowered Funds LLC acquired a new stake in Red Cat Holdings, Inc. (NASDAQ:RCAT - Free Report) in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 358,352 shares of the company's stock, valued at approximately $3,816,000. Empowered Funds LLC owned 0.29% of Red Cat as of its most recent SEC filing.

Other large investors have also bought and sold shares of the company. Fifth Third Bancorp bought a new stake in Red Cat in the first quarter worth about $33,000. Allworth Financial LP acquired a new stake in Red Cat in the 2nd quarter valued at about $28,000. IFP Advisors Inc boosted its position in shares of Red Cat by 181.1% during the 3rd quarter. IFP Advisors Inc now owns 2,670 shares of the company's stock valued at $28,000 after purchasing an additional 1,720 shares in the last quarter. NFSG Corp boosted its position in shares of Red Cat by 200.0% during the 1st quarter. NFSG Corp now owns 3,000 shares of the company's stock valued at $39,000 after purchasing an additional 2,000 shares in the last quarter. Finally, PNC Financial Services Group Inc. grew its stake in shares of Red Cat by 294.6% in 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. Institutional investors own 37.97% of the company's stock.

Insider Buying and Selling at Red Cat

In other news, Director Paul Funk II sold 165,028 shares of the stock in a transaction that occurred on Thursday, June 11th. The shares were sold at an average price of $11.50, for a total value of $1,897,822.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Nicholas Reyland Liuzza, Jr. sold 55,000 shares of the firm's stock in a transaction that occurred on Tuesday, August 11th. The stock was sold at an average price of $10.63, for a total transaction of $584,650.00. Following the sale, the director owned 489,874 shares of the company's stock, valued at approximately $5,207,360.62. This represents a 10.09% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 240,028 shares of company stock valued at $2,692,672 in the last 90 days. 12.50% of the stock is currently owned by corporate insiders.

Red Cat Stock Down 4.0%

Shares of Red Cat stock opened at $8.25 on Wednesday. Red Cat Holdings, Inc. has a 12 month low of $5.77 and a 12 month high of $18.78. The stock has a market cap of $1.01 billion, a PE ratio of -10.19 and a beta of 1.35. The business has a fifty day simple moving average of $9.02 and a 200-day simple moving average of $11.27.

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 for the quarter, missing the consensus estimate of ($0.21) by ($0.05). The business had revenue of $20.20 million for the quarter, compared to analyst estimates of $22.65 million. Red Cat had a negative net margin of 136.26% and a negative return on equity of 32.25%. Analysts expect that Red Cat Holdings, Inc. will post -0.78 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of analysts recently commented on the stock. Weiss Ratings reiterated a "sell (d-)" rating on shares of Red Cat in a report on Friday, July 17th. Roth Capital initiated coverage on shares of Red Cat in a report on Monday, June 1st. They set a "buy" rating and a $25.00 target price for the company. LADENBURG THALM/SH SH upgraded shares of Red Cat to a "strong-buy" rating in a research report on Wednesday, May 6th. HC Wainwright reaffirmed a "buy" rating and issued a $20.00 price target on shares of Red Cat in a report on Friday, August 7th. Finally, Needham & Company LLC cut their price objective on Red Cat from $20.00 to $15.00 and set a "buy" rating for the company in a research report on Friday, August 7th. Two research analysts have rated the stock with a Strong Buy rating, five have given a Buy rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Red Cat presently has a consensus rating of "Buy" and a consensus price target of $19.50.

About Red Cat

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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