HC Wainwright Reaffirms Buy Rating for Red Cat (NASDAQ:RCAT)

Key Points

• HC Wainwright reaffirmed its Buy rating on Red Cat and maintained a $20 price target, implying approximately 131% upside from the stock’s $8.67 price at the time of the report.
• Analyst sentiment is broadly positive: Red Cat has an average rating of Buy and a consensus price target of $20.40, though Weiss Ratings maintains a sell rating.
• Red Cat’s latest quarterly results fell short of expectations, with an adjusted loss of $0.26 per share versus the $0.21 consensus estimate and revenue of $20.20 million versus $22.65 million expected.

Red Cat (NASDAQ:RCAT - Get Free Report)'s stock had its "buy" rating reissued by research analysts at HC Wainwright in a research report issued on Friday,Benzinga reports. They currently have a $20.00 price target on the stock. HC Wainwright's price objective would suggest a potential upside of 130.68% from the stock's current price.

Several other analysts also recently commented on RCAT. Clear Str raised shares of Red Cat to a "strong-buy" rating in a research report on Wednesday, April 29th. Roth Capital initiated coverage on Red Cat in a research report on Monday, June 1st. They issued a "buy" rating and a $25.00 target price for the company. UBS Group initiated coverage on Red Cat in a research note on Wednesday, May 27th. They set a "buy" rating on the stock. LADENBURG THALM/SH SH raised Red Cat to a "strong-buy" rating in a report on Wednesday, May 6th. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Red Cat in a research note on Friday, July 17th. Two research analysts have rated the stock with a Strong Buy rating, four have issued a Buy rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Red Cat currently has an average rating of "Buy" and a consensus target price of $20.40.

Red Cat Price Performance

Shares of Red Cat stock opened at $8.67 on Friday. Red Cat has a fifty-two week low of $5.77 and a fifty-two week high of $18.78. The firm has a market capitalization of $1.06 billion, a P/E ratio of -12.39 and a beta of 1.31. The company's 50 day moving average price is $9.99 and its two-hundred day moving average price is $11.85.

Red Cat (NASDAQ:RCAT - Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The company reported ($0.26) earnings per share (EPS) for the quarter, missing analysts' consensus estimates 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 138.36% and a negative return on equity of 35.86%. On average, analysts expect that Red Cat will post -0.68 earnings per share for the current year.

Insider Transactions at Red Cat

In other Red Cat news, Director Paul Funk II sold 165,028 shares of Red Cat stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $11.50, for a total value of $1,897,822.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 12.50% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Red Cat

A number of hedge funds have recently bought and sold shares of the business. Arizona State Retirement System increased its position in Red Cat by 3.0% during the fourth quarter. Arizona State Retirement System now owns 29,311 shares of the company's stock valued at $232,000 after acquiring an additional 855 shares during the last quarter. CoreCap Advisors LLC grew its position in Red Cat by 13.8% during the second quarter. CoreCap Advisors LLC now owns 9,039 shares of the company's stock valued at $96,000 after buying an additional 1,095 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd. increased its holdings in Red Cat by 0.7% during the fourth quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 167,084 shares of the company's stock valued at $1,325,000 after buying an additional 1,147 shares during the last quarter. Advisory Services Network LLC boosted its stake in shares of Red Cat by 5.3% during the 3rd quarter. Advisory Services Network LLC now owns 30,200 shares of the company's stock worth $313,000 after acquiring an additional 1,507 shares during the last quarter. Finally, Western Wealth Management LLC grew its position in shares of Red Cat by 4.5% during the 1st quarter. Western Wealth Management LLC now owns 36,722 shares of the company's stock valued at $481,000 after acquiring an additional 1,570 shares during the period. Hedge funds and other institutional investors own 37.97% of the company's stock.

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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