Key Points
- Director Christopher Moe sold 20,000 Red Cat shares at an average price of $10.51, generating $210,200 and reducing his holdings by 9.07% to 200,502 shares.
- Red Cat missed quarterly expectations, reporting an adjusted loss of $0.26 per share versus the $0.21 consensus estimate and revenue of $20.20 million versus $22.65 million expected.
- RCAT shares opened at $10.23, while analysts maintained a consensus “Buy” rating with an average price target of $20.40; institutional investors own approximately 37.97% of the company.
Red Cat Holdings, Inc. (NASDAQ:RCAT - Get Free Report) Director Christopher Moe sold 10,000 shares of the business's stock in a transaction dated Monday, August 25th. The shares were sold at an average price of $10.04, for a total value of $100,400.00. Following the completion of the sale, the director owned 220,502 shares in the company, valued at $2,213,840.08. This represents a 4.34% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link.
Red Cat Stock Down 0.9%
NASDAQ RCAT opened at $10.23 on Friday. The company has a market cap of $1.26 billion, a PE ratio of -12.63 and a beta of 1.31. Red Cat Holdings, Inc. has a 52 week low of $5.77 and a 52 week high of $18.78. The firm's 50-day simple moving average is $9.55 and its two-hundred day simple moving average is $11.66.
Red Cat (NASDAQ:RCAT - Get Free Report) last posted its quarterly earnings results on Thursday, August 6th. The company reported ($0.26) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.21) by ($0.05). The business had revenue of $20.20 million during the quarter, compared to the consensus estimate of $22.65 million. Red Cat had a negative net margin of 136.26% and a negative return on equity of 39.64%. As a group, equities research analysts anticipate that Red Cat Holdings, Inc. will post -0.78 EPS for the current year.
Analyst Upgrades and Downgrades
Several research analysts have commented on the company. LADENBURG THALM/SH SH upgraded Red Cat to a "strong-buy" rating in a research note on Wednesday, May 6th. Wall Street Zen downgraded Red Cat from a "sell" rating to a "strong sell" rating in a research report on Saturday, July 18th. Roth Capital started coverage on Red Cat in a research note on Monday, June 1st. They set a "buy" rating and a $25.00 price objective for the company. Clear Str upgraded Red Cat to a "strong-buy" rating in a research note on Wednesday, April 29th. Finally, UBS Group assumed coverage on Red Cat in a report on Wednesday, May 27th. They issued a "buy" rating on the stock. Two investment 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 company. According to data from MarketBeat.com, the company presently has a consensus rating of "Buy" and a consensus target price of $20.40.
View Our Latest Analysis on Red Cat
Key Headlines Impacting Red Cat
Here are the key news stories impacting Red Cat this week:
- Positive Sentiment: Red Cat promoted Mitch McDonald to divisional CEO of its UAS operations, placing Teal Drones and FlightWave Aerospace under unified leadership. The move is intended to improve coordination, manufacturing scale and execution as demand from U.S. and allied defense customers grows. Red Cat Promotes Mitch McDonald to Divisional CEO of its UAS Operations
- Neutral Sentiment: Weakness in fellow drone maker Ondas Holdings after its quarterly results could be weighing on sentiment across the drone sector, although the companies’ operating results differ. Ondas also won a multimillion-dollar Israeli defense tender, highlighting continued defense-drone demand but providing no direct revenue benefit to RCAT. Ondas Drops 7% After Earnings
- Negative Sentiment: Director Christopher R. Moe reported sales totaling 30,000 shares at average prices of $10.51 and $10.04. The transactions reduced his direct ownership by roughly 13.4% across the reported sales and may raise caution about insider conviction.
- Negative Sentiment: Director Nicholas Reyland Liuzza, Jr. sold 55,000 shares at an average price of $10.63, reducing his position by approximately 10%. The sales add to recent insider-selling activity and increase near-term supply concerns.
- Negative Sentiment: Analysts lowered Red Cat’s projected third-quarter EPS, signaling expectations for greater losses or weaker profitability. This follows the company’s latest reported quarter, in which it missed consensus estimates on both EPS and revenue, while continuing to operate with substantial negative margins.
Institutional Investors Weigh In On Red Cat
A number of large investors have recently added to or reduced their stakes in RCAT. Allworth Financial LP purchased a new position in shares of Red Cat in the 2nd quarter worth about $28,000. IFP Advisors Inc raised its holdings in shares of 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 buying an additional 1,720 shares in the last quarter. Fifth Third Bancorp purchased a new position in shares of Red Cat during the 1st quarter valued at about $33,000. California State Teachers Retirement System bought a new stake in Red Cat in the 2nd quarter worth approximately $34,000. Finally, NFSG Corp lifted its position in Red Cat by 200.0% in the 1st quarter. NFSG Corp now owns 3,000 shares of the company's stock worth $39,000 after buying an additional 2,000 shares during the last quarter. Hedge funds and other institutional investors own 37.97% of the company's stock.
Red Cat Company Profile
(
Get Free Report)
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.
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