Mitsubishi UFJ Asset Management Co. Ltd. Takes $2.06 Million Position in Red Cat Holdings, Inc. $RCAT

Key Points

• Mitsubishi UFJ Asset Management acquired 193,260 Red Cat shares worth approximately $2.06 million, while other institutions also initiated or increased positions. Institutional investors now own about 37.97% of the company.
• Red Cat’s latest quarterly results missed expectations, with an adjusted loss of $0.26 per share versus the $0.21 consensus estimate and revenue of $20.2 million compared with expectations of $22.65 million.
• Analyst sentiment remains broadly positive, with a consensus “Buy” rating and an average price target of $20.40, although targets range from $15 to $20 and some firms maintain sell ratings. Insiders sold 240,028 shares worth approximately $2.69 million during the latest quarter.

Mitsubishi UFJ Asset Management Co. Ltd. purchased 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. The institutional investor purchased 193,260 shares of the company's stock, valued at approximately $2,058,000. Mitsubishi UFJ Asset Management Co. Ltd. owned approximately 0.16% of Red Cat as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. N.E.W. Advisory Services LLC acquired a new stake in Red Cat during the 2nd quarter valued at $75,000. Bank of New York Mellon Corp purchased a new position in shares of Red Cat during the second quarter valued at $4,052,000. State of Wyoming purchased a new position in shares of Red Cat during the second quarter valued at $78,000. Mirabella Financial Services LLP acquired a new position in Red Cat during the second quarter valued at $170,000. Finally, Kornitzer Capital Management Inc. KS lifted its stake in Red Cat by 20.1% in the 2nd quarter. Kornitzer Capital Management Inc. KS now owns 105,004 shares of the company's stock worth $1,118,000 after acquiring an additional 17,606 shares in the last quarter. Institutional investors and hedge funds own 37.97% of the company's stock.

Red Cat Trading Up 0.9%

RCAT opened at $9.62 on Friday. The stock has a market cap of $1.18 billion, a price-to-earnings ratio of -11.88 and a beta of 1.31. Red Cat Holdings, Inc. has a 1 year low of $5.77 and a 1 year high of $18.78. The stock has a fifty day moving average price of $9.35 and a 200 day moving average price of $11.48.

Red Cat (NASDAQ:RCAT - Get Free Report) last issued its earnings results 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 analysts' expectations of $22.65 million. As a group, sell-side analysts forecast that Red Cat Holdings, Inc. will post -0.78 earnings per share for the current fiscal year.

Insider Activity at Red Cat

In related news, Director Christopher R. Moe sold 20,000 shares of the firm's stock in a transaction that occurred 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 transaction, the director owned 200,502 shares of the company's stock, valued at approximately $2,107,276.02. This trade represents a 9.07% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Paul Funk II sold 165,028 shares of Red Cat stock in a transaction that occurred on Thursday, June 11th. The shares were sold at an average price of $11.50, for a total transaction of $1,897,822.00. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 240,028 shares of company stock valued at $2,692,672. 12.50% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

Several equities analysts have weighed in on the company. Needham & Company LLC lowered their target price on Red Cat from $20.00 to $15.00 and set a "buy" rating on the stock in a research note on Friday, August 7th. HC Wainwright reissued a "buy" rating and issued a $20.00 price target on shares of Red Cat in a research report on Friday, August 7th. Clear Str upgraded shares of Red Cat to a "strong-buy" rating in a report on Wednesday, April 29th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Red Cat in a research report on Friday, July 17th. Finally, Wall Street Zen downgraded shares of Red Cat from a "sell" rating to a "strong sell" rating in a research report on Saturday, July 18th. Two analysts have rated the stock with a Strong Buy rating, four have issued a Buy rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Buy" and an average price target of $20.40.

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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