Red Cat (NASDAQ:RCAT) Stock Price Down 14% – What’s Next?

Red Cat Holdings, Inc. (NASDAQ:RCAT) traded down 14% on Friday . The company traded as low as $12.26 and last traded at $12.68. 16,764,656 shares changed hands during trading, an increase of 7% from the average session volume of 15,604,924 shares. The stock had previously closed at $14.74.

Analyst Upgrades and Downgrades

A number of equities research analysts recently weighed in on the company. HC Wainwright started coverage on Red Cat in a research note on Wednesday, May 27th. They set a “buy” rating and a $20.00 price objective for the company. Roth Mkm started coverage on Red Cat in a research note on Monday. They issued a “buy” rating and a $25.00 price target for the company. Weiss Ratings reiterated a “sell (d-)” rating on shares of Red Cat in a research note on Tuesday, April 21st. UBS Group started coverage on Red Cat in a research note on Wednesday, May 27th. They issued a “buy” rating for the company. Finally, Clear Str upgraded Red Cat to a “strong-buy” rating in a research note on Wednesday, April 29th. Two research analysts have rated the stock with a Strong Buy rating, four have given a Buy rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Buy” and an average price target of $21.40.

Red Cat Stock Down 14.0%

The business has a 50 day simple moving average of $11.92 and a 200 day simple moving average of $11.62. The company has a market capitalization of $1.56 billion, a PE ratio of -18.11 and a beta of 1.23.

Red Cat (NASDAQ:RCAT) last released its quarterly earnings results on Thursday, May 7th. The company reported ($0.22) EPS for the quarter, missing analysts’ consensus estimates of ($0.12) by ($0.10). Red Cat had a negative net margin of 138.36% and a negative return on equity of 35.86%. The business had revenue of $15.47 million during the quarter, compared to analysts’ expectations of $17.63 million. The company’s revenue was up 849.1% compared to the same quarter last year. Equities analysts expect that Red Cat Holdings, Inc. will post -0.68 EPS for the current fiscal year.

Institutional Trading of Red Cat

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. State Street Corp grew its holdings in Red Cat by 136.4% in the fourth quarter. State Street Corp now owns 6,612,153 shares of the company’s stock valued at $52,434,000 after purchasing an additional 3,815,310 shares during the period. Vanguard Group Inc. grew its holdings in Red Cat by 9.0% in the fourth quarter. Vanguard Group Inc. now owns 6,000,037 shares of the company’s stock valued at $47,580,000 after purchasing an additional 493,660 shares during the period. Geode Capital Management LLC grew its holdings in Red Cat by 13.4% in the fourth quarter. Geode Capital Management LLC now owns 2,520,524 shares of the company’s stock valued at $19,991,000 after purchasing an additional 297,967 shares during the period. Brevan Howard Capital Management LP acquired a new stake in Red Cat in the third quarter valued at approximately $19,739,000. Finally, Davidson Kempner Capital Management LP acquired a new stake in Red Cat in the third quarter valued at approximately $17,286,000. 37.97% of the stock is owned by institutional investors and hedge funds.

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.