Red Cat (NASDAQ:RCAT) Upgraded to Strong-Buy at Northland Capmk

Red Cat (NASDAQ:RCAT) was upgraded by equities researchers at Northland Capmk to a “strong-buy” rating in a research note issued on Monday,Zacks.com reports.

Separately, Northland Securities started coverage on Red Cat in a research note on Tuesday. They issued an “outperform” rating and a $13.00 price target on the stock.

Red Cat Price Performance

Shares of NASDAQ:RCAT opened at $4.94 on Monday. The firm has a market capitalization of $396.00 million, a price-to-earnings ratio of -9.15 and a beta of 1.32. The stock’s 50 day moving average is $8.89 and its 200-day moving average is $6.55. Red Cat has a twelve month low of $0.70 and a twelve month high of $15.27. The company has a quick ratio of 0.60, a current ratio of 1.43 and a debt-to-equity ratio of 0.30.

Red Cat (NASDAQ:RCAT) last issued its earnings results on Monday, December 16th. The company reported ($0.18) EPS for the quarter, missing the consensus estimate of $0.09 by ($0.27). Red Cat had a negative return on equity of 96.00% and a negative net margin of 232.62%. During the same period in the prior year, the company posted ($0.11) earnings per share. Sell-side analysts forecast that Red Cat will post -0.5 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, insider George Michael Matus sold 309,491 shares of the business’s stock in a transaction on Thursday, December 26th. The stock was sold at an average price of $14.27, for a total transaction of $4,416,436.57. Following the transaction, the insider now directly owns 304,406 shares in the company, valued at $4,343,873.62. The trade was a 50.41 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CRO Geoffrey Wayne Hitchcock sold 113,823 shares of Red Cat stock in a transaction dated Friday, December 20th. The stock was sold at an average price of $10.44, for a total value of $1,188,312.12. Following the sale, the executive now directly owns 558,325 shares of the company’s stock, valued at approximately $5,828,913. This represents a 16.93 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 1,930,441 shares of company stock worth $21,099,751 over the last quarter. 21.50% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the company. Pekin Hardy Strauss Inc. acquired a new stake in Red Cat in the third quarter valued at about $138,000. Corsair Capital Management L.P. acquired a new stake in shares of Red Cat in the 3rd quarter valued at about $308,000. Centiva Capital LP bought a new stake in shares of Red Cat during the 3rd quarter valued at about $207,000. State Street Corp increased its stake in shares of Red Cat by 44.9% in the third quarter. State Street Corp now owns 221,958 shares of the company’s stock valued at $564,000 after purchasing an additional 68,800 shares during the period. Finally, Wolverine Trading LLC acquired a new position in shares of Red Cat during the third quarter valued at approximately $233,000. 37.97% of the stock is currently owned by institutional investors and hedge funds.

About Red Cat

Red Cat Holdings, Inc engages in the provision of various products, services, and solutions to the drone industry. The company operates through two segments: Enterprise and Consumer. It built infrastructure to manages drone fleets and fly, and provide services remotely, navigate confined industrial interior spaces and dangerous military environment.