Is Red Cat Stock a Good Investment?
Red Cat Investment Advice | RCAT |
- Examine Red Cat's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Red Cat's leadership team and their track record. Good management can help Red Cat navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Electronic Equipment, Instruments & Components space and any emerging trends that could impact Red Cat's business and its evolving consumer preferences.
- Compare Red Cat's performance and market position to its competitors. Analyze how Red Cat is positioned in terms of product offerings, innovation, and market share.
- Check if Red Cat pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Red Cat's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Red Cat Holdings stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Red Cat Holdings is a good investment.
Sell | Buy |
Strong Sell
Market Performance | Solid | Details | |
Volatility | Risky | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Almost mirrors the market | Details | |
Investor Sentiment | Interested | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unavailable | Details |
Examine Red Cat Stock
Researching Red Cat's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 21.0% of the company outstanding shares are owned by corporate insiders. The company recorded a loss per share of 0.42. Red Cat Holdings last dividend was issued on the 1st of August 2019. The entity had 1:1200 split on the 1st of August 2019.
To determine if Red Cat is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Red Cat's research are outlined below:
| Red Cat Holdings is way too risky over 90 days horizon | |
| Red Cat Holdings appears to be risky and price may revert if volatility continues | |
| The company reported the previous year's revenue of 17.84 M. Net Loss for the year was (21.53 M) with profit before overhead, payroll, taxes, and interest of 925.51 K. | |
| Red Cat Holdings currently holds about 42.95 M in cash with (18.6 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.79. | |
| Roughly 21.0% of the company outstanding shares are owned by corporate insiders | |
| Latest headline from gurufocus.com: Red Cat Holdings Promotes Geoffrey Hitchcock to Chief Revenue Officer |
Red Cat Quarterly Liabilities And Stockholders Equity |
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Red Cat uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Red Cat Holdings. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Red Cat's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 5th of March 2024 Upcoming Quarterly Report | View | |
| 31st of January 2024 Next Fiscal Quarter End | View |
Earnings surprises can significantly impact Red Cat's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Red Cat's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2023-03-07 | 2023-01-31 | -0.09 | -0.1 | -0.01 | 11 | ||
2022-07-27 | 2022-04-30 | -0.1 | -0.09 | 0.01 | 10 | ||
2023-12-15 | 2023-10-31 | -0.07 | -0.1 | -0.03 | 42 | ||
2021-12-20 | 2021-10-31 | -0.02 | -0.05 | -0.03 | 150 | ||
2024-07-30 | 2024-04-30 | -0.05 | -0.09 | -0.04 | 80 | ||
2022-09-12 | 2022-07-31 | -0.03 | -0.07 | -0.04 | 133 | ||
2024-03-18 | 2024-01-31 | -0.04 | -0.1 | -0.06 | 150 | ||
2022-03-17 | 2022-01-31 | 0.01 | -0.05 | -0.06 | 600 |
Know Red Cat's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Red Cat is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Red Cat Holdings backward and forwards among themselves. Red Cat's institutional investor refers to the entity that pools money to purchase Red Cat's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Citigroup Inc | 2024-09-30 | 99.5 K | Centiva Capital Lp | 2024-09-30 | 81.6 K | Two Sigma Investments Llc | 2024-09-30 | 60.2 K | Diametric Capital, Lp | 2024-09-30 | 58.4 K | Appleseed Capital | 2024-09-30 | 54.5 K | Jane Street Group Llc | 2024-06-30 | 50.7 K | United Capital Management Of Ks | 2024-09-30 | 42.5 K | Jefferies Financial Group Inc | 2024-09-30 | 36 K | American Century Companies Inc | 2024-09-30 | 35 K | Awm Investment Company Inc | 2024-09-30 | 4.5 M | Vanguard Group Inc | 2024-09-30 | 2.3 M |
Red Cat's market capitalization trends
The company currently falls under 'Small-Cap' category with a current market capitalization of 699.56 M.Market Cap |
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Red Cat's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (0.67) | 1.50 | |
| Return On Capital Employed | (0.39) | 1.62 | |
| Return On Assets | (0.50) | 1.50 | |
| Return On Equity | (0.55) | (0.34) |
Determining Red Cat's profitability involves analyzing its financial statements and using various financial metrics to determine if Red Cat is a good buy. For example, gross profit margin measures Red Cat's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Red Cat's profitability and make more informed investment decisions.
Please note, the imprecision that can be found in Red Cat's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Red Cat Holdings. Check Red Cat's Beneish M Score to see the likelihood of Red Cat's management manipulating its earnings.
Evaluate Red Cat's management efficiency
Red Cat Holdings has return on total asset (ROA) of (0.2683) % which means that it has lost $0.2683 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of (0.6877) %, meaning that it created substantial loss on money invested by shareholders. Red Cat's management efficiency ratios could be used to measure how well Red Cat manages its routine affairs as well as how well it operates its assets and liabilities. At this time, Red Cat's Return On Tangible Assets are comparatively stable compared to the past year. Return On Capital Employed is likely to gain to 1.62 in 2024, despite the fact that Return On Equity is likely to grow to (0.34). At this time, Red Cat's Liabilities And Stockholders Equity is comparatively stable compared to the past year. Non Current Liabilities Total is likely to gain to about 1.4 M in 2024, whereas Total Current Liabilities is likely to drop slightly above 2 M in 2024.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 0.72 | (86.87) | |
| Tangible Book Value Per Share | 0.51 | (86.87) | |
| Enterprise Value Over EBITDA | (4.40) | 0.76 | |
| Price Book Value Ratio | 2.11 | (0.40) | |
| Enterprise Value Multiple | (4.40) | 0.76 | |
| Price Fair Value | 2.11 | (0.40) | |
| Enterprise Value | 88.2 M | 2.4 M |
Evaluating the management effectiveness of Red Cat allows investors to assess its financial health and operational efficiency. Coupled with an analysis of its growth prospects and the current market dynamics, we evaluate the stock's true value and future potential. Key indicators such as revenue, earnings or debt levels are examined alongside external factors like economic trends and regulatory changes. The Red Stock analysis seeks to determine whether the stock is undervalued, appropriately priced, or overvalued, thereby guiding your investment decisions.
Beta (0.38) |
Basic technical analysis of Red Stock
As of the 29th of November, Red Cat holds the Semi Deviation of 5.33, coefficient of variation of 425.13, and Risk Adjusted Performance of 0.1893. Compared to fundamental indicators, the technical analysis model allows you to check existing technical drivers of Red Cat, as well as the relationship between them.Red Cat's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Red Cat insiders, such as employees or executives, is commonly permitted as long as it does not rely on Red Cat's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Red Cat insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Red Cat's Outstanding Corporate Bonds
Red Cat issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Red Cat Holdings uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Red bonds can be classified according to their maturity, which is the date when Red Cat Holdings has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
Understand Red Cat's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Red Cat's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.1893 | |||
| Market Risk Adjusted Performance | 1.38 | |||
| Mean Deviation | 6.52 | |||
| Semi Deviation | 5.33 | |||
| Downside Deviation | 6.2 | |||
| Coefficient Of Variation | 425.13 | |||
| Standard Deviation | 8.53 | |||
| Variance | 72.79 | |||
| Information Ratio | 0.2205 | |||
| Jensen Alpha | 1.83 | |||
| Total Risk Alpha | 0.7123 | |||
| Sortino Ratio | 0.3033 | |||
| Treynor Ratio | 1.37 | |||
| Maximum Drawdown | 47.4 | |||
| Value At Risk | (8.57) | |||
| Potential Upside | 15.75 | |||
| Downside Variance | 38.48 | |||
| Semi Variance | 28.36 | |||
| Expected Short fall | (8.17) | |||
| Skewness | 0.9464 | |||
| Kurtosis | 2.43 |
| Risk Adjusted Performance | 0.1893 | |||
| Market Risk Adjusted Performance | 1.38 | |||
| Mean Deviation | 6.52 | |||
| Semi Deviation | 5.33 | |||
| Downside Deviation | 6.2 | |||
| Coefficient Of Variation | 425.13 | |||
| Standard Deviation | 8.53 | |||
| Variance | 72.79 | |||
| Information Ratio | 0.2205 | |||
| Jensen Alpha | 1.83 | |||
| Total Risk Alpha | 0.7123 | |||
| Sortino Ratio | 0.3033 | |||
| Treynor Ratio | 1.37 | |||
| Maximum Drawdown | 47.4 | |||
| Value At Risk | (8.57) | |||
| Potential Upside | 15.75 | |||
| Downside Variance | 38.48 | |||
| Semi Variance | 28.36 | |||
| Expected Short fall | (8.17) | |||
| Skewness | 0.9464 | |||
| Kurtosis | 2.43 |
Consider Red Cat's intraday indicators
Red Cat intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Red Cat stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Red Cat Corporate Filings
8K | 27th of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
F4 | 25th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
| 14th of November 2024 Other Reports | ViewVerify | |
10Q | 23rd of September 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
Red Stock media impact
Far too much social signal, news, headlines, and media speculation about Red Cat that are available to investors today. That information is available publicly through Red media outlets and privately through word of mouth or via Red internal channels. However, regardless of the origin, that massive amount of Red data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Red Cat news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Red Cat relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Red Cat's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Red Cat alpha.
Red Cat Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Red Cat can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Red Cat Corporate Management
| Stan Nowak | Vice Marketing | Profile | |
| Jeffrey Thompson | Chairman, Founder | Profile | |
| George Matus | Chief Officer | Profile | |
| Joseph Hernon | S CFO | Profile | |
| Allan Evans | Chief Officer | Profile | |
| Giuseppe Santangelo | Chief Skypersonic | Profile |
Additional Tools for Red Stock Analysis
When running Red Cat's price analysis, check to measure Red Cat's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Red Cat is operating at the current time. Most of Red Cat's value examination focuses on studying past and present price action to predict the probability of Red Cat's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Red Cat's price. Additionally, you may evaluate how the addition of Red Cat to your portfolios can decrease your overall portfolio volatility.