Red Cat (NASDAQ:RCAT) Trading 1.2% Higher - Time to Buy?

Key Points

• Red Cat shares rose 1.2% to $8.59, below both the 50-day moving average of $9.10 and 200-day moving average of $11.33, on trading volume that was 55% below average.
• Analyst sentiment remains broadly positive, with a consensus “Buy” rating and a $19.50 target price, although individual targets range from $15 to $25 and one firm rates the stock a sell.
• The company missed quarterly expectations, reporting an adjusted loss of $0.26 per share versus an expected loss of $0.21 and revenue of $20.2 million versus $22.65 million expected. Insiders sold 240,028 shares worth $2.69 million during the latest quarter, while institutional ownership stands at 37.97%.

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) traded up 1.2% during trading on Monday . The company traded as high as $8.98 and last traded at $8.59. 6,028,383 shares were traded during trading, a decline of 55% from the average session volume of 13,468,475 shares. The stock had previously closed at $8.49.

Wall Street Analysts Forecast Growth

RCAT has been the subject of a number of analyst reports. LADENBURG THALM/SH SH raised Red Cat to a "strong-buy" rating in a report on Wednesday, May 6th. HC Wainwright reissued a "buy" rating and issued a $20.00 price objective on shares of Red Cat in a report on Friday, August 7th. Weiss Ratings restated a "sell (d-)" rating on shares of Red Cat in a research report on Friday, July 17th. Needham & Company LLC reduced their price objective on shares of Red Cat from $20.00 to $15.00 and set a "buy" rating for the company in a research report on Friday, August 7th. Finally, Roth Capital initiated coverage on shares of Red Cat in a research note on Monday, June 1st. They set a "buy" rating and a $25.00 target price for the company. Two equities research analysts have rated the stock with a Strong Buy rating, five have given a Buy rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Buy" and a consensus target price of $19.50.

Red Cat Stock Up 1.2%

The company's 50-day moving average is $9.10 and its 200-day moving average is $11.33. The stock has a market capitalization of $1.05 billion, a price-to-earnings ratio of -10.60 and a beta of 1.32.

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 analyst estimates of $22.65 million. Red Cat had a negative net margin of 136.26% and a negative return on equity of 32.25%. Sell-side analysts anticipate that Red Cat Holdings, Inc. will post -0.78 EPS for the current year.

Insiders Place Their Bets

In related news, Director Nicholas Reyland Liuzza, Jr. sold 55,000 shares of the firm's stock in a transaction dated Tuesday, August 11th. The stock was sold at an average price of $10.63, for a total transaction of $584,650.00. Following the completion of 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 position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Paul Funk II sold 165,028 shares of the business's 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. The SEC filing for this sale provides additional information. Insiders sold a total of 240,028 shares of company stock valued at $2,692,672 over the last quarter. 12.50% of the stock is owned by insiders.

Institutional Investors Weigh In On Red Cat

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Corient Private Wealth LP lifted its stake in Red Cat by 135.5% during the second quarter. Corient Private Wealth LP now owns 27,310 shares of the company's stock worth $291,000 after purchasing an additional 15,712 shares in the last quarter. Kingsbury Capital Investment Advisors LLC grew its stake in shares of Red Cat by 22.7% in the second quarter. Kingsbury Capital Investment Advisors LLC now owns 13,556 shares of the company's stock valued at $144,000 after buying an additional 2,512 shares in the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new stake in shares of Red Cat in the second quarter valued at $200,000. California State Teachers Retirement System raised its holdings in shares of Red Cat by 1,038.2% in the 2nd quarter. California State Teachers Retirement System now owns 1,585,167 shares of the company's stock valued at $16,882,000 after buying an additional 1,445,899 shares during the period. Finally, Concurrent Investment Advisors LLC lifted its stake in Red Cat by 114.9% during the 2nd quarter. Concurrent Investment Advisors LLC now owns 66,384 shares of the company's stock worth $707,000 after acquiring an additional 35,499 shares in the last quarter. 37.97% of the stock is owned by hedge funds and other institutional investors.

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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