State Street Corp Purchases 4,928,540 Shares of Red Cat Holdings, Inc. $RCAT

Key Points

• State Street increased its Red Cat Holdings stake by 68.8%, purchasing 4.93 million additional shares to own 12.09 million shares, or approximately 9.85% of the company. Institutional investors collectively hold 37.97% of Red Cat.
• Red Cat reported weaker-than-expected quarterly results, with a loss of $0.26 per share versus the $0.21 consensus estimate and revenue of $20.2 million versus expectations of $22.65 million.
• Analyst sentiment remains mixed but averages to a “Moderate Buy”, with a consensus price target of $16.71; meanwhile, insiders sold 225,000 shares worth approximately $1.96 million over the past 90 days.

State Street Corp grew its position in shares of Red Cat Holdings, Inc. (NASDAQ:RCAT - Free Report) by 68.8% during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 12,091,447 shares of the company's stock after buying an additional 4,928,540 shares during the quarter. State Street Corp owned approximately 9.85% of Red Cat worth $128,774,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds also recently modified their holdings of the company. Allworth Financial LP acquired a new stake in Red Cat during the 2nd quarter valued at $28,000. Fifth Third Bancorp bought a new stake in shares of Red Cat during the first quarter worth $33,000. NFSG Corp increased its stake in shares of Red Cat by 200.0% in the first quarter. NFSG Corp now owns 3,000 shares of the company's stock valued at $39,000 after buying an additional 2,000 shares in the last quarter. PNC Financial Services Group Inc. increased its stake in shares of Red Cat by 294.6% in the first quarter. PNC Financial Services Group Inc. now owns 3,042 shares of the company's stock valued at $40,000 after buying an additional 2,271 shares in the last quarter. Finally, Integrated Wealth Concepts LLC bought a new position in shares of Red Cat in the second quarter valued at about $42,000. Institutional investors and hedge funds own 37.97% of the company's stock.

Insiders Place Their Bets

In other news, Director Christopher R. Moe sold 20,000 shares of the firm's stock in a transaction on Tuesday, August 11th. The stock was sold at an average price of $10.51, for a total value of $210,200.00. Following the transaction, the director directly owned 200,502 shares in the company, valued at $2,107,276.02. This trade represents a 9.07% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, 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 sale, the director directly owned 489,874 shares of the company's stock, valued at approximately $5,207,360.62. This trade represents a 10.09% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 225,000 shares of company stock valued at $1,955,850. Company insiders own 12.50% of the company's stock.

Red Cat Trading Up 3.2%

Shares of NASDAQ:RCAT opened at $6.80 on Friday. The stock has a market capitalization of $834.63 million, a P/E ratio of -8.40 and a beta of 1.35. 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 $8.44 and a two-hundred day moving average price of $10.65.

Red Cat (NASDAQ:RCAT - Get Free Report) last issued its earnings results on Thursday, August 6th. The company reported ($0.26) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.21) by ($0.05). The business had revenue of $20.20 million during the quarter, compared to the consensus estimate of $22.65 million. Red Cat had a negative net margin of 136.26% and a negative return on equity of 32.25%. As a group, equities analysts predict that Red Cat Holdings, Inc. will post -0.79 EPS for the current year.

Wall Street Analyst Weigh In

A number of equities research analysts have commented on the stock. Piper Sandler initiated coverage on shares of Red Cat in a report on Wednesday, September 2nd. They set a "neutral" rating and a $9.00 price objective on the stock. Northland Securities set a $13.00 target price on shares of Red Cat in a research note on Thursday, September 17th. Roth Capital started coverage on shares of Red Cat in a research report on Monday, June 1st. They set a "buy" rating and a $25.00 target price on the stock. Wall Street Zen cut shares of Red Cat from a "sell" rating to a "strong sell" rating in a research note on Saturday, July 18th. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of Red Cat in a research report on Friday, July 17th. Two equities research analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, Red Cat presently has an average rating of "Moderate Buy" and a consensus target price of $16.71.

Red Cat Profile

Red Cat Holdings, Inc is a drone technology company that develops and supplies small unmanned aircraft systems for military, government, public safety and commercial applications. Its solutions are designed to support intelligence, surveillance and reconnaissance, situational awareness, and other missions requiring portable and rapidly deployable aerial systems.

Through its Teal Drones business, Red Cat offers the Teal 2 and related Black Widow systems, compact drones designed for defense and public-safety users.

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