Red Cat (NASDAQ:RCAT) Trading 2% Higher - Time to Buy?

Key Points

• Red Cat shares rose 2% to $7.79 in Monday trading, though volume was 59% below the average session level. The stock remains below its 50-day and 200-day moving averages of $10.34 and $12.13, respectively.
• Analyst sentiment is broadly positive, with a consensus “Buy” rating and an average price target of $21.40; recent targets include $20 from HC Wainwright and $25 from Roth Capital. However, Weiss Ratings maintained a “sell” rating.
• The company reported weaker-than-expected quarterly results, including an adjusted loss of $0.22 per share versus estimates of $0.12 and revenue of $15.47 million versus $17.63 million expected. Revenue still surged 849.1% year over year, while losses and negative margins remain significant.

Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report)'s share price traded up 2% on Monday . The stock traded as high as $8.00 and last traded at $7.79. Approximately 5,915,682 shares traded hands during trading, a decline of 59% from the average session volume of 14,273,941 shares. The stock had previously closed at $7.64.

Wall Street Analysts Forecast Growth

A number of research analysts have recently issued reports on the stock. Roth Capital initiated coverage on shares of Red Cat in a research note on Monday, June 1st. They issued a "buy" rating and a $25.00 target price for the company. LADENBURG THALM/SH SH upgraded Red Cat to a "strong-buy" rating in a research report on Wednesday, May 6th. HC Wainwright started coverage on Red Cat in a report on Wednesday, May 27th. They set a "buy" rating and a $20.00 price target for the company. Weiss Ratings reiterated a "sell (d-)" rating on shares of Red Cat in a research report on Friday, July 17th. Finally, UBS Group began coverage on Red Cat in a research report on Wednesday, May 27th. They issued a "buy" rating for the company. Two equities research analysts have rated the stock with a Strong Buy rating, four have issued a Buy rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Red Cat has a consensus rating of "Buy" and an average target price of $21.40.

Red Cat Trading Up 2.0%

The business's fifty day simple moving average is $10.34 and its 200 day simple moving average is $12.13. The stock has a market cap of $956.14 million, a P/E ratio of -11.13 and a beta of 1.29.

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 net margin of 138.36% and a negative return on equity of 35.86%. The company had revenue of $15.47 million during the quarter, compared to analyst estimates of $17.63 million. The business's revenue was up 849.1% on a year-over-year basis. On average, analysts predict that Red Cat Holdings, Inc. will post -0.68 earnings per share for the current fiscal year.

Insider Activity at Red Cat

In related news, Director Paul Funk II sold 165,028 shares of the firm's 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 sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 12.50% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. Tudor Investment Corp ET AL raised its position in shares of 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 acquiring an additional 870,612 shares during the last quarter. EVR Research LP acquired a new position in shares of Red Cat during the fourth quarter valued at $1,705,000. Caitong International Asset Management Co. Ltd lifted its stake 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 valued at $429,000 after acquiring an additional 51,339 shares during the period. Vanguard Group Inc. boosted its holdings in Red Cat by 9.0% in the fourth quarter. Vanguard Group Inc. now owns 6,000,037 shares of the company's stock valued at $47,580,000 after acquiring an additional 493,660 shares during the last quarter. Finally, UBS Group AG boosted its holdings 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 acquiring an additional 158,864 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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