Red Cat (NASDAQ:RCAT) Director Sells 55,000 Shares

Key Points

• Director Nicholas Reyland Liuzza, Jr. sold 55,000 Red Cat shares at an average price of $10.63, generating $584,650 and reducing his position by 10.09% to 489,874 shares.
• Red Cat shares traded down 0.9% to $10.23, while the company’s latest quarterly results missed expectations: adjusted EPS was a $0.26 loss versus a projected $0.21 loss, and revenue reached $20.2 million versus $22.65 million expected.
• Despite the earnings shortfall and insider sale, analysts maintain a consensus “Buy” rating with a $20.40 price target; institutional investors own approximately 37.97% of the stock.

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) 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 transaction 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 sale was disclosed in a document filed with the SEC, which is accessible through this link.

Red Cat Stock Down 0.9%

NASDAQ:RCAT traded down $0.09 during midday trading on Thursday, reaching $10.23. The stock had a trading volume of 8,020,427 shares, compared to its average volume of 13,911,289. The stock has a market cap of $1.26 billion, a P/E ratio of -12.63 and a beta of 1.31. Red Cat Holdings, Inc. has a 12-month low of $5.77 and a 12-month high of $18.78. The firm has a fifty day simple moving average of $9.64 and a two-hundred day simple moving average of $11.70.

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 net margin of 136.26% and a negative return on equity of 39.64%. The business had revenue of $20.20 million during the quarter, compared to analyst estimates of $22.65 million. On average, sell-side analysts anticipate that Red Cat Holdings, Inc. will post -0.76 earnings per share for the current fiscal year.

Institutional Trading of Red Cat

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Allworth Financial LP acquired a new stake in shares of Red Cat during the second quarter worth $28,000. IFP Advisors Inc increased its stake in Red Cat by 181.1% in the third quarter. IFP Advisors Inc now owns 2,670 shares of the company's stock valued at $28,000 after purchasing an additional 1,720 shares during the last quarter. Fifth Third Bancorp acquired a new position in Red Cat in the first quarter valued at $33,000. California State Teachers Retirement System purchased a new position in Red Cat during the second quarter worth about $34,000. Finally, NFSG Corp boosted its stake in Red Cat by 200.0% in the 1st quarter. NFSG Corp now owns 3,000 shares of the company's stock worth $39,000 after buying an additional 2,000 shares during the last quarter. 37.97% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several analysts have recently commented on RCAT shares. HC Wainwright reiterated a "buy" rating and issued a $20.00 price target on shares of Red Cat in a research report on Friday, August 7th. UBS Group assumed coverage on Red Cat in a report on Wednesday, May 27th. They set a "buy" rating on the stock. Needham & Company LLC cut their price target on Red Cat from $20.00 to $15.00 and set a "buy" rating for the company in a report on Friday, August 7th. LADENBURG THALM/SH SH upgraded Red Cat to a "strong-buy" rating in a research report on Wednesday, May 6th. Finally, Roth Capital assumed coverage on Red Cat in a research note on Monday, June 1st. They set a "buy" rating and a $25.00 price objective on the stock. Two analysts have rated the stock with a Strong Buy rating, four have issued a Buy rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Buy" and a consensus target price of $20.40.

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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