Red Cat Holdings, Inc. (NASDAQ:RCAT) Given Average Rating of "Buy" by Analysts

Key Points

• Analyst sentiment is bullish on Red Cat Holdings, with seven analysts averaging a “Buy” rating and a consensus 12-month price target of $21.40. Recent coverage has included multiple buy and strong-buy initiations, though one analyst still rates it a sell.
• The stock has been volatile, opening at $8.24 and trading well below its 52-week high of $18.78, with a 50-day moving average of $10.67 and a 200-day average of $12.16. Red Cat currently has a market cap of about $1.01 billion and a beta of 1.29.
• Latest earnings showed strong revenue growth but continued losses, as Red Cat reported a quarterly EPS of -$0.22 versus an expected -$0.12 and revenue of $15.47 million, up 849.1% from a year earlier but below estimates. The company also saw insider selling, including a director sale of 165,028 shares at $11.50 each.

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) have earned an average recommendation of "Buy" from the seven analysts that are presently covering the company, MarketBeat Ratings reports. One equities research analyst has rated the stock with a sell recommendation, four have issued a buy recommendation and two have given a strong buy recommendation to the company. The average 12-month price target among analysts that have covered the stock in the last year is $21.40.

Several research analysts recently issued reports on RCAT shares. Roth Capital assumed 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 on the stock. UBS Group initiated coverage on Red Cat in a research report on Wednesday, May 27th. They issued a "buy" rating for the company. LADENBURG THALM/SH SH raised shares of Red Cat to a "strong-buy" rating in a research report on Wednesday, May 6th. Wall Street Zen raised shares of Red Cat from a "strong sell" rating to a "sell" rating in a report on Saturday, June 27th. Finally, Clear Str upgraded Red Cat to a "strong-buy" rating in a research note on Wednesday, April 29th.

Red Cat Price Performance

Red Cat stock opened at $8.24 on Thursday. The firm has a market cap of $1.01 billion, a P/E ratio of -11.77 and a beta of 1.29. Red Cat has a one year low of $5.77 and a one year high of $18.78. The stock's 50 day moving average is $10.67 and its 200 day moving average is $12.16.

Red Cat (NASDAQ:RCAT - Get Free Report) last posted its quarterly earnings data on Thursday, May 7th. The company reported ($0.22) earnings per share for the quarter, missing the consensus estimate of ($0.12) by ($0.10). Red Cat had a negative return on equity of 35.86% and a negative net margin of 138.36%.The firm had revenue of $15.47 million for the quarter, compared to analyst estimates of $17.63 million. The company's revenue was up 849.1% compared to the same quarter last year. Equities analysts anticipate that Red Cat will post -0.67 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, Director Paul Funk II sold 165,028 shares of Red Cat stock in a transaction that occurred on Thursday, June 11th. The shares were sold at an average price of $11.50, for a total value of $1,897,822.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Company insiders own 12.50% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in RCAT. Tudor Investment Corp ET AL grew its position in Red Cat by 214.0% during the third quarter. Tudor Investment Corp ET AL now owns 1,277,523 shares of the company's stock worth $13,222,000 after buying an additional 870,612 shares in the last quarter. EVR Research LP purchased a new position in shares of Red Cat during the fourth quarter worth approximately $1,705,000. Caitong International Asset Management Co. Ltd raised its position in Red Cat by 1,825.1% in the 4th 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. Vanguard Group Inc. increased its holdings in shares of Red Cat by 9.0% in the fourth quarter. Vanguard Group Inc. now owns 6,000,037 shares of the company's stock worth $47,580,000 after buying an additional 493,660 shares during the period. Finally, UBS Group AG lifted its position in Red Cat by 37.7% in the fourth quarter. UBS Group AG now owns 580,099 shares of the company's stock valued at $4,600,000 after purchasing an additional 158,864 shares during the last quarter. 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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