Red Cat Holdings, Inc. (NASDAQ:RCAT) Given Consensus Recommendation of "Buy" by Brokerages

Key Points

• Brokerages give Red Cat (NASDAQ:RCAT) an average rating of Buy from five covering analysts (1 sell, 2 buy, 2 strong buy) with an average 12‑month target of $14.00.
• The company reported Q results showing EPS of ($0.16), missing the ($0.07) estimate while revenue of $9.65M beat the $8.18M consensus; the stock trades near $11.70 with a $1.40B market cap and a 1‑year range of $4.58–$16.70.
• Institutional investors have been adding shares—Brevan Howard, Vanguard, Davidson Kempner, Geode and Tudor all increased or opened sizable positions—leaving institutions with about 37.97% ownership.

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) has received an average rating of "Buy" from the five brokerages that are presently covering the company, MarketBeat Ratings reports. One analyst has rated the stock with a sell rating, two have assigned a buy rating and two have issued a strong buy rating on the company. The average 12-month target price among analysts that have covered the stock in the last year is $14.00.

A number of equities research analysts recently commented on the stock. Wall Street Zen downgraded shares of Red Cat from a "hold" rating to a "sell" rating in a research report on Saturday, October 4th. LADENBURG THALM/SH SH raised Red Cat to a "strong-buy" rating in a report on Thursday, December 18th. Weiss Ratings restated a "sell (d-)" rating on shares of Red Cat in a research note on Wednesday, October 8th. Finally, Needham & Company LLC dropped their price objective on Red Cat from $17.00 to $12.00 and set a "buy" rating on the stock in a report on Friday, November 14th.

Red Cat Price Performance

NASDAQ:RCAT opened at $11.70 on Monday. The firm has a market cap of $1.40 billion, a price-to-earnings ratio of -26.59 and a beta of 1.48. The firm's fifty day moving average price is $8.32 and its 200 day moving average price is $9.42. Red Cat has a 1-year low of $4.58 and a 1-year high of $16.70.

Red Cat (NASDAQ:RCAT - Get Free Report) last released its earnings results on Thursday, November 13th. The company reported ($0.16) EPS for the quarter, missing the consensus estimate of ($0.07) by ($0.09). The firm had revenue of $9.65 million for the quarter, compared to the consensus estimate of $8.18 million. As a group, analysts expect that Red Cat will post -0.5 earnings per share for the current fiscal year.

Institutional Trading of Red Cat

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Brevan Howard Capital Management LP purchased a new position in shares of Red Cat during the 3rd quarter worth approximately $19,739,000. Vanguard Group Inc. grew its holdings in Red Cat by 43.9% during the 3rd quarter. Vanguard Group Inc. now owns 5,506,377 shares of the company's stock valued at $56,991,000 after buying an additional 1,680,929 shares during the last quarter. Davidson Kempner Capital Management LP acquired a new stake in Red Cat during the 3rd quarter valued at $17,286,000. Geode Capital Management LLC increased its position in Red Cat by 142.7% during the second quarter. Geode Capital Management LLC now owns 1,656,720 shares of the company's stock worth $12,063,000 after buying an additional 974,121 shares in the last quarter. Finally, Tudor Investment Corp ET AL raised its holdings in shares of Red Cat by 214.0% in the third quarter. Tudor Investment Corp ET AL now owns 1,277,523 shares of the company's stock worth $13,222,000 after acquiring an additional 870,612 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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