Red Cat (NASDAQ:RCAT) Trading 1.9% Higher - What's Next?

Key Points

• Red Cat shares rose 1.9% to $9.10 in Tuesday trading, though volume was 64% below the average session level. The stock remains below its 200-day moving average of $11.43.
• Analyst sentiment is mixed but leans positive: Red Cat has an average “Buy” rating and a consensus price target of $20.40, despite ratings ranging from “Strong Buy” to “Strong 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 estimates of $22.65 million. Insiders also sold 240,028 shares worth approximately $2.69 million over the past three months.

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) shares shot up 1.9% on Tuesday . The company traded as high as $9.33 and last traded at $9.10. Approximately 4,877,107 shares traded hands during trading, a decline of 64% from the average session volume of 13,663,012 shares. The stock had previously closed at $8.93.

Analyst Upgrades and Downgrades

Several equities analysts have recently commented on RCAT shares. Weiss Ratings restated a "sell (d-)" rating on shares of Red Cat in a report on Friday, July 17th. Wall Street Zen lowered Red Cat from a "sell" rating to a "strong sell" rating in a research report on Saturday, July 18th. HC Wainwright restated a "buy" rating and set a $20.00 price target on shares of Red Cat in a research note on Friday, August 7th. LADENBURG THALM/SH SH raised Red Cat to a "strong-buy" rating in a research note on Wednesday, May 6th. Finally, Clear Str upgraded Red Cat to a "strong-buy" rating in a report on Wednesday, April 29th. Two analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Buy" and an average target price of $20.40.

Red Cat Trading Up 1.9%

The company has a market capitalization of $1.12 billion, a price-to-earnings ratio of -11.23 and a beta of 1.32. The stock's fifty day simple moving average is $9.29 and its 200-day simple moving average is $11.43.

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

Insider Buying and Selling

In other Red Cat news, Director Nicholas Reyland Liuzza, Jr. sold 55,000 shares of the stock in a transaction dated 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 owned 489,874 shares of the company's stock, valued at $5,207,360.62. This trade represents a 10.09% 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 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 disclosure for this sale is available in the SEC filing. Insiders sold 240,028 shares of company stock valued at $2,692,672 in the last three months. 12.50% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Red Cat

A number of large investors have recently modified their holdings of RCAT. Sei Investments Co. acquired a new stake in Red Cat during the 1st quarter worth approximately $2,328,000. Janus Henderson Group PLC increased its holdings in shares of Red Cat by 733.7% in the first quarter. Janus Henderson Group PLC now owns 392,808 shares of the company's stock valued at $5,141,000 after purchasing an additional 345,693 shares during the period. EVR Research LP purchased a new stake in shares of Red Cat during the fourth quarter worth approximately $1,705,000. Empowered Funds LLC acquired a new stake in shares of Red Cat during the first quarter worth $2,232,000. Finally, Caitong International Asset Management Co. Ltd lifted its holdings in shares of Red Cat by 1,825.1% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 54,152 shares of the company's stock worth $429,000 after purchasing an additional 51,339 shares during the period. 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source