Needham & Company LLC Cuts Red Cat (NASDAQ:RCAT) Price Target to $15.00

Key Points

• Needham & Company lowered Red Cat’s price target to $15 from $20 but maintained a “buy” rating, implying about 73% upside from the reported $8.67 share price.
• Analyst sentiment remains generally positive, with an average “Buy” rating and a consensus price target of $20.40, although ratings range from “Strong Buy” to “Sell” and “Strong Sell.”
• Red Cat’s latest quarter fell short of expectations, reporting an adjusted loss of $0.26 per share versus the $0.21 estimate and revenue of $20.2 million versus $22.65 million expected.

Red Cat (NASDAQ:RCAT - Get Free Report) had its price objective decreased by research analysts at Needham & Company LLC from $20.00 to $15.00 in a report released on Friday,Benzinga reports. The firm currently has a "buy" rating on the stock. Needham & Company LLC's price objective suggests a potential upside of 73.01% from the company's current price.

RCAT has been the topic of several other research reports. Clear Str upgraded shares of Red Cat to a "strong-buy" rating in a report on Wednesday, April 29th. UBS Group assumed coverage on Red Cat in a research note on Wednesday, May 27th. They issued a "buy" rating for the company. Roth Capital began coverage on Red Cat in a report on Monday, June 1st. They issued a "buy" rating and a $25.00 price target for the company. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Red Cat in a research report on Friday, July 17th. Finally, Wall Street Zen lowered shares of Red Cat from a "sell" rating to a "strong sell" rating in a research note on Saturday, July 18th. Two analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Buy" and a consensus price target of $20.40.

Red Cat Stock Performance

Shares of RCAT stock opened at $8.67 on Friday. The firm has a market capitalization of $1.06 billion, a price-to-earnings ratio of -12.39 and a beta of 1.31. Red Cat has a one year low of $5.77 and a one year high of $18.78. The company has a 50 day moving average price of $9.99 and a 200 day moving average price of $11.85.

Red Cat (NASDAQ:RCAT - Get Free Report) last released its quarterly earnings data 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 return on equity of 35.86% and a negative net margin of 138.36%.The firm had revenue of $20.20 million for the quarter, compared to analyst estimates of $22.65 million. As a group, equities analysts forecast that Red Cat will post -0.68 EPS for the current fiscal year.

Insider Activity at Red Cat

In related news, Director Paul Funk II sold 165,028 shares of the stock in a transaction dated Thursday, June 11th. The stock was sold at an average price of $11.50, for a total value of $1,897,822.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 12.50% of the company's stock.

Hedge Funds Weigh In On Red Cat

Institutional investors have recently made changes to their positions in the business. IFP Advisors Inc boosted its stake 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 buying an additional 1,720 shares during the last quarter. Fifth Third Bancorp bought a new stake in shares of Red Cat in the first quarter worth $33,000. California State Teachers Retirement System acquired a new stake in Red Cat in the second quarter valued at $34,000. NFSG Corp boosted its stake in 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 acquiring an additional 2,000 shares during the last quarter. Finally, PNC Financial Services Group Inc. boosted its stake in Red Cat by 294.6% during the 1st quarter. PNC Financial Services Group Inc. now owns 3,042 shares of the company's stock valued at $40,000 after acquiring an additional 2,271 shares during the last quarter. 37.97% of the stock is owned by institutional investors and hedge funds.

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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