Red Cat (NASDAQ:RCAT) Downgraded to “Strong Sell” Rating by Wall Street Zen

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

A number of other research firms have also commented on RCAT. Weiss Ratings restated a “sell (d-)” rating on shares of Red Cat in a research note on Tuesday, April 21st. UBS Group began coverage on shares of Red Cat in a research note on Wednesday, May 27th. They set a “buy” rating for the company. LADENBURG THALM/SH SH raised Red Cat to a “strong-buy” rating in a report on Wednesday, May 6th. Roth Capital started coverage on Red Cat in a research report on Monday, June 1st. They issued a “buy” rating and a $25.00 price target on the stock. Finally, Clear Str raised Red Cat to a “strong-buy” rating in a research note on Wednesday, April 29th. Two equities research analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has given a Sell rating to the stock. According to MarketBeat.com, Red Cat has an average rating of “Buy” and a consensus target price of $21.40.

Red Cat Price Performance

Shares of Red Cat stock opened at $7.64 on Friday. The firm’s fifty day simple moving average is $10.56 and its 200-day simple moving average is $12.13. Red Cat has a 12 month low of $5.77 and a 12 month high of $18.78. The stock has a market capitalization of $937.73 million, a price-to-earnings ratio of -10.91 and a beta of 1.29.

Red Cat (NASDAQ:RCAT) last issued its quarterly earnings results on Thursday, May 7th. The company reported ($0.22) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.12) by ($0.10). The business 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 company’s quarterly revenue was up 849.1% on a year-over-year basis. Analysts anticipate that Red Cat will post -0.67 earnings per share for the current year.

Insiders Place Their Bets

In other Red Cat news, Director Paul Funk II sold 165,028 shares of the business’s stock in a transaction 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 legal filing with the SEC, which is available through this link. 12.50% of the stock is currently owned by company insiders.

Institutional Trading of Red Cat

Hedge funds have recently made changes to their positions in the company. State Street Corp raised its holdings in Red Cat by 136.4% during the fourth quarter. State Street Corp now owns 6,612,153 shares of the company’s stock worth $52,434,000 after purchasing an additional 3,815,310 shares in the last quarter. Vanguard Group Inc. lifted its position in Red Cat by 43.9% in the third quarter. Vanguard Group Inc. now owns 5,506,377 shares of the company’s stock valued at $56,991,000 after purchasing an additional 1,680,929 shares during the period. Davidson Kempner Capital Management LP purchased a new stake in Red Cat in the 3rd quarter valued at approximately $17,286,000. Renaissance Technologies LLC purchased a new stake in Red Cat in the 1st quarter valued at approximately $18,533,000. Finally, CenterBook Partners LP increased its position in Red Cat by 1,872.4% during the 4th quarter. CenterBook Partners LP now owns 1,105,132 shares of the company’s stock worth $8,764,000 after purchasing an additional 1,049,101 shares during the period. Institutional investors and hedge funds own 37.97% of the company’s stock.

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.