Red Cat (NASDAQ:RCAT) Stock Rating Cut to “Strong Sell” at Zacks Research

by · The Cerbat Gem

Zacks Research downgraded shares of Red Cat (NASDAQ:RCAT – Free Report) from a hold rating to a strong sell rating in a report released on Monday,Zacks reports.

RCAT has been the topic of a number of other reports. Needham & Company LLC lowered their price target on shares of Red Cat from $20.00 to $15.00 and set a “buy” rating on the stock in a research report on Friday, August 7th. Evercore assumed coverage on shares of Red Cat in a research note on Monday, August 31st. They set an “outperform” rating and a $15.00 price objective for the company. Weiss Ratings reiterated a “sell (d-)” rating on shares of Red Cat in a report on Friday, July 17th. Wall Street Zen downgraded shares of Red Cat from a “sell” rating to a “strong sell” rating in a report on Saturday, July 18th. Finally, HC Wainwright reissued a “buy” rating and issued a $20.00 target price on shares of Red Cat in a research note on Friday, August 7th. Two equities research analysts have rated the stock with a Strong Buy rating, five have given a Buy rating, one has issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, Red Cat has an average rating of “Moderate Buy” and an average price target of $16.71.

Check Out Our Latest Stock Report on Red Cat

Red Cat Stock Down 3.9%

Shares of RCAT opened at $5.18 on Monday. Red Cat has a 52-week low of $5.14 and a 52-week high of $18.78. The firm’s fifty day moving average is $8.01 and its two-hundred day moving average is $9.79. The stock has a market cap of $635.79 million, a PE ratio of -6.40 and a beta of 1.51.

Red Cat (NASDAQ:RCAT – Get Free Report) last released its earnings results on Thursday, August 6th. The company reported ($0.26) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.21) by ($0.05). The business had revenue of $20.20 million for the quarter, compared to analysts’ expectations of $22.65 million. Red Cat had a negative return on equity of 32.25% and a negative net margin of 136.26%. As a group, research analysts anticipate that Red Cat will post -0.79 earnings per share for the current year.

Insider Buying and Selling at Red Cat

In other Red Cat news, Director Nicholas Reyland Liuzza, Jr. sold 55,000 shares of the firm’s stock in a transaction on Tuesday, August 11th. The stock was sold at an average price of $10.63, for a total value of $584,650.00. Following the completion of the sale, the director directly owned 489,874 shares of the company’s stock, valued at $5,207,360.62. This trade represents a 10.09% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Christopher R. Moe sold 20,000 shares of Red Cat stock in a transaction on Tuesday, August 11th. The stock was sold at an average price of $10.51, for a total value of $210,200.00. Following the transaction, the director owned 200,502 shares in the company, valued at approximately $2,107,276.02. This represents a 9.07% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 225,000 shares of company stock worth $1,955,850 in the last three months. 12.50% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Red Cat

A number of hedge funds have recently modified their holdings of RCAT. Bouvel Investment Partners LLC increased its position in Red Cat by 117.9% during the third quarter. Bouvel Investment Partners LLC now owns 165,537 shares of the company’s stock worth $1,069,000 after purchasing an additional 89,558 shares during the last quarter. Castle Rock Wealth Management LLC purchased a new position in Red Cat during the third quarter worth about $68,000. Post Resch Tallon Group Inc. raised its stake in Red Cat by 8.9% during the third quarter. Post Resch Tallon Group Inc. now owns 32,900 shares of the company’s stock worth $213,000 after purchasing an additional 2,700 shares during the period. Farther Finance Advisors LLC boosted its holdings in Red Cat by 140.3% in the 3rd quarter. Farther Finance Advisors LLC now owns 18,417 shares of the company’s stock valued at $119,000 after purchasing an additional 10,752 shares during the last quarter. Finally, Byrne Asset Management LLC boosted its holdings in Red Cat by 11.5% in the 3rd quarter. Byrne Asset Management LLC now owns 23,600 shares of the company’s stock valued at $149,000 after purchasing an additional 2,440 shares during the last quarter. Hedge funds and other institutional investors own 37.97% of the company’s stock.

About Red Cat

(Get Free Report)

Red Cat Holdings, Inc is a drone technology company that develops and supplies unmanned aircraft systems for defense, government, public safety and commercial applications. The company focuses on autonomous and remotely operated aerial systems designed to support intelligence, surveillance and reconnaissance missions, including operations in contested or GPS-denied environments.

Red Cat’s product portfolio includes the Teal 2 small unmanned aircraft system, a compact drone designed for close-range reconnaissance and situational awareness.

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