Red Cat (NASDAQ:RCAT) Rating Increased to Sell at Wall Street Zen

Red Cat (NASDAQ:RCAT) was upgraded by analysts at Wall Street Zen from a “strong sell” rating to a “sell” rating in a research note issued to investors on Saturday.

Other equities analysts have also recently issued reports about the company. Clear Str raised Red Cat to a “strong-buy” rating in a report on Wednesday, April 29th. HC Wainwright started coverage on Red Cat in a report on Wednesday, May 27th. They issued a “buy” rating and a $20.00 target price for the company. Needham & Company LLC raised their price target on Red Cat from $16.00 to $20.00 and gave the company a “buy” rating in a report on Thursday, March 19th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Red Cat in a report on Tuesday, April 21st. Finally, LADENBURG THALM/SH SH raised Red Cat to a “strong-buy” rating in a report on Wednesday, May 6th. Two equities research analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Buy” and an average target price of $21.40.

Red Cat Trading Down 14.0%

Shares of RCAT opened at $12.68 on Friday. Red Cat has a 1 year low of $5.77 and a 1 year high of $18.78. The stock has a 50 day simple moving average of $11.86 and a 200-day simple moving average of $11.63. The stock has a market cap of $1.56 billion, a PE ratio of -18.11 and a beta of 1.23.

Red Cat (NASDAQ:RCAT) last issued its earnings results on Thursday, May 7th. The company reported ($0.22) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.12) by ($0.10). Red Cat had a negative return on equity of 35.86% and a negative net margin of 138.36%.The company had revenue of $15.47 million during the quarter, compared to analyst estimates of $17.63 million. Red Cat’s revenue was up 849.1% on a year-over-year basis. On average, sell-side analysts forecast that Red Cat will post -0.68 EPS for the current fiscal year.

Institutional Investors Weigh In On Red Cat

Hedge funds and other institutional investors have recently bought and sold shares of the business. IFP Advisors Inc increased its holdings in Red Cat by 181.1% during the 3rd quarter. IFP Advisors Inc now owns 2,670 shares of the company’s stock valued at $28,000 after purchasing an additional 1,720 shares in the last quarter. Fifth Third Bancorp acquired a new stake in Red Cat during the 1st quarter valued at $33,000. Montag A & Associates Inc. increased its holdings in Red Cat by 552.0% during the 3rd quarter. Montag A & Associates Inc. now owns 3,260 shares of the company’s stock valued at $34,000 after purchasing an additional 2,760 shares in the last quarter. California State Teachers Retirement System acquired a new stake in shares of Red Cat in the 2nd quarter valued at $34,000. Finally, NFSG Corp increased its stake in shares of Red Cat by 200.0% in the 1st quarter. NFSG Corp now owns 3,000 shares of the company’s stock valued at $39,000 after buying an additional 2,000 shares during the period. 37.97% of the stock is owned by institutional investors and hedge funds.

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.