Red Cat (NASDAQ:RCAT) Shares Gap Up - What's Next?

Key Points

• Red Cat shares gapped higher, opening at $8.71 versus a prior close of $8.32, before trading near $8.48. The company has a market capitalization of about $1.04 billion, while its stock remains below both its 50-day and 200-day moving averages.
• Analyst sentiment is generally positive, with a consensus rating of “Moderate Buy” and an average price target of $18.00. Recent targets range from $15 to $25, although one research firm maintains a sell rating.
• Red Cat’s latest quarterly results missed expectations, reporting a $0.26 per-share loss and $20.2 million in revenue versus estimates of a $0.21 loss and $22.65 million in revenue. Insiders have sold 240,028 shares worth approximately $2.69 million over the past quarter.

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report)'s stock price gapped up prior to trading on Thursday . The stock had previously closed at $8.32, but opened at $8.71. Red Cat shares last traded at $8.48, with a volume of 2,432,199 shares changing hands.

Analyst Ratings Changes

Several research firms have recently issued reports on RCAT. Roth Capital assumed coverage on shares of Red Cat in a research report on Monday, June 1st. They set a "buy" rating and a $25.00 price objective for the company. Weiss Ratings restated a "sell (d-)" rating on shares of Red Cat in a research note on Friday, July 17th. HC Wainwright reaffirmed a "buy" rating and set a $20.00 price target on shares of Red Cat in a report on Friday, August 7th. Evercore started coverage on Red Cat in a research report on Monday. They set an "outperform" rating and a $15.00 price objective for the company. Finally, LADENBURG THALM/SH SH upgraded Red Cat to a "strong-buy" rating in a report on Wednesday, May 6th. Two investment 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 issued a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $18.00.

Red Cat Stock Up 1.9%

The firm has a fifty day simple moving average of $9.00 and a 200-day simple moving average of $11.25. The company has a market cap of $1.04 billion, a PE ratio of -10.46 and a beta of 1.35.

Red Cat (NASDAQ:RCAT - Get Free Report) last posted its earnings results on Thursday, August 6th. The company reported ($0.26) earnings per share for the quarter, missing the consensus estimate of ($0.21) by ($0.05). The firm had revenue of $20.20 million during the quarter, compared to analysts' expectations of $22.65 million. Red Cat had a negative net margin of 136.26% and a negative return on equity of 32.25%. Equities research analysts forecast that Red Cat Holdings, Inc. will post -0.78 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, Director Christopher R. Moe sold 20,000 shares of the stock in a transaction 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 completion of the sale, the director owned 200,502 shares in the company, valued at $2,107,276.02. This represents a 9.07% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, 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 transaction of $1,897,822.00. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 240,028 shares of company stock valued at $2,692,672 over the last quarter. Company insiders own 12.50% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. Allworth Financial LP purchased a new position in Red Cat during the second quarter worth about $28,000. IFP Advisors Inc grew its holdings in Red Cat by 181.1% in 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 period. Fifth Third Bancorp purchased a new stake in Red Cat in the 1st quarter valued at about $33,000. California State Teachers Retirement System acquired a new position in shares of Red Cat during the 2nd quarter valued at about $34,000. Finally, NFSG Corp increased its stake in shares of 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. Institutional investors and hedge funds own 37.97% of the company's stock.

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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