Red Cat Holdings, Inc. $RCAT Shares Bought by Mitsubishi UFJ Asset Management Co. Ltd.

Key Points

• Mitsubishi UFJ Asset Management increased its stake in Red Cat by 31.1% in Q2 to 157,704 shares (about $1.15M), and institutional investors now own roughly 37.97% of the company.
• Red Cat reported Q3 EPS of −$0.16 versus a consensus −$0.07 (a miss) while beating revenue estimates at $9.65M, and the stock has traded down (opened $7.16, down ~7.5%) amid these results; market cap is about $845M with a negative P/E.
• Insider selling was significant this quarter—Director Christopher R. Moe sold 30,000 shares at $10.11 and insiders sold 86,833 shares total—though insiders still own about 15.30% of the company.

Mitsubishi UFJ Asset Management Co. Ltd. lifted its holdings in Red Cat Holdings, Inc. (NASDAQ:RCAT - Free Report) by 31.1% during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 157,704 shares of the company's stock after purchasing an additional 37,407 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd. owned about 0.17% of Red Cat worth $1,148,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Caitong International Asset Management Co. Ltd boosted its holdings in Red Cat by 28,681.0% during the second quarter. Caitong International Asset Management Co. Ltd now owns 6,044 shares of the company's stock worth $44,000 after buying an additional 6,023 shares in the last quarter. Bank of America Corp DE increased its holdings in shares of Red Cat by 407.0% in the fourth quarter. Bank of America Corp DE now owns 3,397 shares of the company's stock valued at $44,000 after buying an additional 2,727 shares in the last quarter. SBI Securities Co. Ltd. lifted its position in shares of Red Cat by 104.4% during the 1st quarter. SBI Securities Co. Ltd. now owns 9,467 shares of the company's stock valued at $56,000 after acquiring an additional 4,835 shares during the last quarter. AlphaQuest LLC bought a new stake in shares of Red Cat during the 2nd quarter worth $67,000. Finally, Ring Mountain Capital LLC acquired a new position in shares of Red Cat in the 2nd quarter worth $78,000. 37.97% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

A number of equities research analysts have recently issued reports on RCAT shares. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Red Cat in a research report on Wednesday, October 8th. Northland Securities set a $16.00 price target on Red Cat in a research note on Friday, August 15th. Needham & Company LLC reduced their price objective on shares of Red Cat from $17.00 to $12.00 and set a "buy" rating for the company in a research note on Friday. Wall Street Zen downgraded shares of Red Cat from a "hold" rating to a "sell" rating in a research report on Saturday, October 4th. Finally, LADENBURG THALM/SH SH upgraded shares of Red Cat to a "strong-buy" rating in a report on Thursday, October 2nd. Two analysts have rated the stock with a Strong Buy rating, two have assigned a Buy rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Buy" and an average target price of $14.00.

Insider Buying and Selling

In other Red Cat news, Director Christopher R. Moe sold 30,000 shares of the company's stock in a transaction that occurred on Thursday, September 11th. The shares were sold at an average price of $10.11, for a total value of $303,300.00. Following the transaction, the director owned 73,073 shares in the company, valued at approximately $738,768.03. This represents a 29.11% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders have sold 86,833 shares of company stock worth $861,560 over the last quarter. Insiders own 15.30% of the company's stock.

Red Cat Trading Down 7.5%

Shares of Red Cat stock opened at $7.16 on Friday. The stock has a 50-day moving average price of $10.99 and a 200 day moving average price of $9.00. The company has a market cap of $844.95 million, a P/E ratio of -15.57 and a beta of 1.45. Red Cat Holdings, Inc. has a 1 year low of $4.43 and a 1 year high of $16.70.

Red Cat (NASDAQ:RCAT - Get Free Report) last released its earnings results on Thursday, November 13th. The company reported ($0.16) earnings per share for the quarter, missing the consensus estimate of ($0.07) by ($0.09). The business had revenue of $9.65 million during the quarter, compared to the consensus estimate of $8.18 million. Red Cat has set its Q4 2025 guidance at EPS. FY 2025 guidance at EPS. On average, equities analysts forecast that Red Cat Holdings, Inc. will post -0.5 earnings per share for the current fiscal year.

About Red Cat

Red Cat Holdings, Inc engages in the provision of various products, services, and solutions to the drone industry. The company operates through two segments: Enterprise and Consumer. It built infrastructure to manages drone fleets and fly, and provide services remotely, navigate confined industrial interior spaces and dangerous military environment.

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