Red Cat (NASDAQ:RCAT) Stock Rating Upgraded by LADENBURG THALM/SH SH

Key Points

• LADENBURG THALM/SH SH upgraded Red Cat to a "strong-buy" and the stock carries a MarketBeat consensus rating of "Buy" with a consensus target price of $20.67.
• Fundamentals remain weak: Red Cat missed quarterly EPS (‑$0.17 vs. ‑$0.14) despite revenue beating estimates, and the company reported a negative net margin of 176.96% and negative ROE of 38.86%.
• Shares opened at $10.62, trading below both the 50‑day ($13.44) and 200‑day ($11.45) moving averages and well under its 12‑month high of $18.78, indicating current market price is materially below analyst target levels.

Red Cat (NASDAQ:RCAT - Get Free Report) was upgraded by research analysts at LADENBURG THALM/SH SH to a "strong-buy" rating in a research report issued on Wednesday,Zacks.com reports.

Several other equities analysts also recently commented on the company. Weiss Ratings reiterated a "sell (d-)" rating on shares of Red Cat in a research report on Tuesday, April 21st. Northland Securities set a $22.00 target price on Red Cat in a research report on Tuesday, January 20th. Wall Street Zen downgraded shares of Red Cat from a "hold" rating to a "sell" rating in a research note on Saturday, May 2nd. Needham & Company LLC raised their price target on shares of Red Cat from $16.00 to $20.00 and gave the company a "buy" rating in a research note on Thursday, March 19th. Finally, Clear Str raised shares of Red Cat to a "strong-buy" rating in a research note on Wednesday, April 29th. Two research analysts have rated the stock with a Strong Buy rating, one has given a Buy rating and one has issued a Sell rating to the company. According to MarketBeat, Red Cat currently has a consensus rating of "Buy" and a consensus target price of $20.67.

Red Cat Stock Up 1.8%

Shares of RCAT stock opened at $10.62 on Wednesday. The company has a market cap of $1.30 billion, a P/E ratio of -14.16 and a beta of 1.21. The business has a fifty day simple moving average of $13.44 and a 200 day simple moving average of $11.45. Red Cat has a twelve month low of $5.22 and a twelve month high of $18.78.

Red Cat (NASDAQ:RCAT - Get Free Report) last issued its quarterly earnings data on Wednesday, March 18th. The company reported ($0.17) EPS for the quarter, missing the consensus estimate of ($0.14) by ($0.03). The company had revenue of $26.24 million during the quarter, compared to the consensus estimate of $24.50 million. Red Cat had a negative net margin of 176.96% and a negative return on equity of 38.86%. As a group, equities research analysts anticipate that Red Cat will post -0.41 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Red Cat

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Fifth Third Bancorp bought a new stake in shares of Red Cat during the first quarter valued at approximately $33,000. IFP Advisors Inc increased its holdings in shares of Red Cat by 181.1% during the third quarter. IFP Advisors Inc now owns 2,670 shares of the company's stock valued at $28,000 after acquiring an additional 1,720 shares in the last quarter. NFSG Corp increased its holdings in shares of Red Cat by 200.0% during the first quarter. NFSG Corp now owns 3,000 shares of the company's stock valued at $39,000 after acquiring an additional 2,000 shares in the last quarter. Montag A & Associates Inc. increased its holdings in shares of Red Cat by 552.0% during the third quarter. Montag A & Associates Inc. now owns 3,260 shares of the company's stock valued at $34,000 after acquiring an additional 2,760 shares in the last quarter. Finally, Bank of America Corp DE increased its holdings in shares of Red Cat by 407.0% during the fourth quarter. Bank of America Corp DE now owns 3,397 shares of the company's stock valued at $44,000 after acquiring an additional 2,727 shares in the last quarter. 37.97% of the stock is owned by 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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