Red Cat (NASDAQ:RCAT) Shares Up 10.5% on Analyst Upgrade

Red Cat Holdings, Inc. (NASDAQ:RCAT) rose 10.5% on Friday after LADENBURG THALM/SH SH upgraded the stock to a strong-buy rating. The stock traded as high as $7.95 and last traded at $7.9450. Approximately 3,607,103 shares were traded during mid-day trading, a decline of 58% from the average daily volume of 8,609,765 shares. The stock had previously closed at $7.19.

RCAT has been the subject of a number of other reports. Needham & Company LLC decreased their price objective on Red Cat from $17.00 to $12.00 and set a “buy” rating for the company in a report on Friday, November 14th. Wall Street Zen lowered Red Cat from a “hold” rating to a “sell” rating in a research report on Saturday, October 4th. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Red Cat in a research report on Wednesday, October 8th. Two analysts have rated the stock with a Strong Buy rating, two have given a Buy rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Buy” and a consensus price target of $14.00.

Insider Activity at Red Cat

In related news, Director Christopher R. Moe sold 10,000 shares of the firm’s stock in a transaction that occurred on Monday, September 29th. The stock was sold at an average price of $10.91, for a total transaction of $109,100.00. Following the completion of the sale, the director owned 53,073 shares of the company’s stock, valued at $579,026.43. This trade represents a 15.85% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. 15.30% of the stock is currently owned by insiders.

Institutional Trading of Red Cat

Several hedge funds have recently modified their holdings of the stock. Goldman Sachs Group Inc. boosted its stake in Red Cat by 28.7% during the first quarter. Goldman Sachs Group Inc. now owns 266,099 shares of the company’s stock worth $1,565,000 after acquiring an additional 59,334 shares in the last quarter. Toth Financial Advisory Corp acquired a new position in shares of Red Cat during the second quarter valued at about $202,000. Moors & Cabot Inc. boosted its position in shares of Red Cat by 65.6% during the 2nd quarter. Moors & Cabot Inc. now owns 280,825 shares of the company’s stock worth $2,044,000 after purchasing an additional 111,225 shares in the last quarter. Integrated Wealth Concepts LLC grew its stake in shares of Red Cat by 66.0% in the 1st quarter. Integrated Wealth Concepts LLC now owns 195,225 shares of the company’s stock valued at $1,148,000 after buying an additional 77,630 shares during the period. Finally, Mitsubishi UFJ Asset Management Co. Ltd. increased its position in Red Cat by 31.1% in the 2nd quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 157,704 shares of the company’s stock valued at $1,148,000 after buying an additional 37,407 shares in the last quarter. Institutional investors own 37.97% of the company’s stock.

Red Cat Stock Performance

The business has a 50 day moving average of $9.08 and a two-hundred day moving average of $9.25. The firm has a market capitalization of $960.93 million, a price-to-earnings ratio of -18.30 and a beta of 1.48.

Red Cat (NASDAQ:RCAT) last issued its earnings results on Thursday, November 13th. The company reported ($0.16) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.07) by ($0.09). The firm had revenue of $9.65 million during the quarter, compared to the consensus estimate of $8.18 million. On average, equities analysts predict that Red Cat Holdings, Inc. will post -0.5 EPS for the current fiscal year.

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.