Red Cat (NASDAQ:RCAT) Stock Price Up 3.9% – Here’s Why

Red Cat Holdings, Inc. (NASDAQ:RCAT) rose 3.9% on Tuesday . The stock traded as high as $8.91 and last traded at $8.70. Approximately 5,467,460 shares changed hands during trading, a decline of 59% from the average daily volume of 13,231,940 shares. The stock had previously closed at $8.37.

Analyst Upgrades and Downgrades

Several equities analysts have commented on the stock. Piper Sandler assumed coverage on shares of Red Cat in a research note on Wednesday, September 2nd. They issued a “neutral” rating and a $9.00 price target on the stock. Roth Capital assumed coverage on Red Cat in a report on Monday, June 1st. They issued a “buy” rating and a $25.00 target price for the company. Wall Street Zen cut Red Cat from a “sell” rating to a “strong sell” rating in a research note on Saturday, July 18th. Weiss Ratings reissued a “sell (d-)” rating on shares of Red Cat in a report on Friday, July 17th. Finally, UBS Group initiated coverage on shares of Red Cat in a research report on Wednesday, May 27th. They set a “buy” rating on the stock. Two investment analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Red Cat presently has an average rating of “Moderate Buy” and a consensus price target of $18.00.

Red Cat Stock Performance

The stock has a market cap of $1.07 billion, a price-to-earnings ratio of -10.73 and a beta of 1.35. The company has a 50-day moving average of $8.94 and a 200-day moving average of $11.19.

Red Cat (NASDAQ:RCAT) last posted its quarterly earnings data on Thursday, August 6th. The company reported ($0.26) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.21) by ($0.05). Red Cat had a negative return on equity of 32.25% and a negative net margin of 136.26%.The company had revenue of $20.20 million for the quarter, compared to analyst estimates of $22.65 million. As a group, equities research analysts forecast that Red Cat Holdings, Inc. will post -0.77 EPS for the current year.

Insider Transactions at Red Cat

In other Red Cat news, Director Nicholas Reyland Liuzza, Jr. sold 55,000 shares of the business’s stock in a transaction on Tuesday, August 11th. The shares were sold at an average price of $10.63, for a total value of $584,650.00. Following the transaction, the director directly owned 489,874 shares of the company’s stock, valued at approximately $5,207,360.62. The trade was a 10.09% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Christopher R. Moe sold 20,000 shares of the business’s stock in a transaction on Tuesday, August 11th. The shares were sold at an average price of $10.51, for a total transaction of $210,200.00. Following the completion of the transaction, the director directly owned 200,502 shares in the company, valued at $2,107,276.02. This represents a 9.07% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 240,028 shares of company stock worth $2,692,672 over the last 90 days. 12.50% of the stock is currently owned by insiders.

Institutional Trading of Red Cat

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Bank of America Corp DE raised its holdings in Red Cat by 407.0% during the fourth quarter. Bank of America Corp DE now owns 3,397 shares of the company’s stock worth $44,000 after purchasing an additional 2,727 shares in the last quarter. Royal Bank of Canada raised its stake in shares of Red Cat by 76.4% during the 1st quarter. Royal Bank of Canada now owns 57,800 shares of the company’s stock worth $340,000 after buying an additional 25,031 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in shares of Red Cat by 63.6% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 229,259 shares of the company’s stock valued at $1,348,000 after buying an additional 89,095 shares during the period. Goldman Sachs Group Inc. lifted its holdings in shares of Red Cat by 28.7% in the 1st quarter. Goldman Sachs Group Inc. now owns 266,099 shares of the company’s stock valued at $1,565,000 after buying an additional 59,334 shares during the period. Finally, Cetera Investment Advisers purchased a new stake in shares of Red Cat in the second quarter valued at approximately $97,000. Hedge funds and other institutional investors 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.