Red Cat (NASDAQ:RCAT) Coverage Initiated at HC Wainwright

HC Wainwright began coverage on shares of Red Cat (NASDAQ:RCAT) in a research note issued to investors on Wednesday, MarketBeat reports. The brokerage set a “buy” rating and a $20.00 price target on the stock. HC Wainwright’s price target points to a potential upside of 104.71% from the company’s current price.

Other analysts have also recently issued reports about the stock. Wall Street Zen cut shares of Red Cat from a “hold” rating to a “sell” rating in a research report on Saturday, May 2nd. Needham & Company LLC upped their price target on shares of Red Cat from $16.00 to $20.00 and gave the stock a “buy” rating in a research report on Thursday, March 19th. Clear Str raised shares of Red Cat to a “strong-buy” rating in a research report on Wednesday, April 29th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Red Cat in a research report on Tuesday, April 21st. Finally, LADENBURG THALM/SH SH raised shares of Red Cat to a “strong-buy” rating in a research report on Wednesday, May 6th. Two equities research analysts have rated the stock with a Strong Buy rating, three have issued a Buy rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Buy” and an average price target of $20.50.

Red Cat Stock Up 3.8%

RCAT stock opened at $9.77 on Wednesday. The company has a market cap of $1.20 billion, a price-to-earnings ratio of -13.96 and a beta of 1.21. The business has a fifty day simple moving average of $12.15 and a 200-day simple moving average of $11.35. Red Cat has a 52 week low of $5.71 and a 52 week high of $18.78.

Red Cat (NASDAQ:RCAT) last released its quarterly earnings data on Thursday, May 7th. The company reported ($0.22) EPS for the quarter, missing analysts’ consensus estimates of ($0.12) by ($0.10). The firm had revenue of $15.47 million for the quarter, compared to analyst estimates of $17.63 million. Red Cat had a negative return on equity of 35.86% and a negative net margin of 138.36%.The business’s revenue for the quarter was up 849.1% on a year-over-year basis. As a group, analysts expect that Red Cat will post -0.65 earnings per share for the current fiscal year.

Institutional Trading of Red Cat

A number of institutional investors have recently added to or reduced their stakes in the business. State Street Corp boosted its position in Red Cat by 136.4% in the 4th quarter. State Street Corp now owns 6,612,153 shares of the company’s stock valued at $52,434,000 after buying an additional 3,815,310 shares during the last quarter. Vanguard Group Inc. boosted its position in Red Cat by 9.0% in the 4th quarter. Vanguard Group Inc. now owns 6,000,037 shares of the company’s stock valued at $47,580,000 after buying an additional 493,660 shares during the last quarter. Geode Capital Management LLC boosted its position in Red Cat by 13.4% in the 4th quarter. Geode Capital Management LLC now owns 2,520,524 shares of the company’s stock valued at $19,991,000 after buying an additional 297,967 shares during the last quarter. Brevan Howard Capital Management LP purchased a new position in Red Cat in the 3rd quarter valued at about $19,739,000. Finally, Davidson Kempner Capital Management LP purchased a new position in Red Cat in the 3rd quarter valued at about $17,286,000. 37.97% of the stock is owned by hedge funds and other 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.