Red Cat (NASDAQ:RCAT) Trading Down 7.5% – Here’s Why

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s share price was down 7.5% on Monday . The stock traded as low as $10.47 and last traded at $10.5850. 2,903,548 shares traded hands during mid-day trading, a decline of 81% from the average daily volume of 15,257,425 shares. The stock had previously closed at $11.44.

Analyst Ratings Changes

Several analysts recently weighed in on the company. Clear Str raised Red Cat to a “strong-buy” rating in a report on Wednesday, April 29th. UBS Group began coverage on Red Cat in a research report on Wednesday, May 27th. They set a “buy” rating on the stock. Wall Street Zen raised Red Cat from a “strong sell” rating to a “sell” rating in a report on Saturday, June 6th. HC Wainwright began coverage on shares of Red Cat in a research report on Wednesday, May 27th. They issued a “buy” rating and a $20.00 target price for the company. Finally, LADENBURG THALM/SH SH upgraded shares of Red Cat to a “strong-buy” rating in a research note on Wednesday, May 6th. Two equities research analysts have rated the stock with a Strong Buy rating, four have issued a Buy rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Buy” and an average price target of $21.40.

Red Cat Stock Down 5.1%

The firm has a 50 day simple moving average of $11.60 and a two-hundred day simple moving average of $11.98. The stock has a market capitalization of $1.33 billion, a P/E ratio of -15.54 and a beta of 1.23.

Red Cat (NASDAQ:RCAT) last issued its quarterly earnings results on Thursday, May 7th. The company reported ($0.22) earnings per share (EPS) for the quarter, missing the consensus estimate 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 the consensus estimate of $17.63 million. The company’s revenue for the quarter was up 849.1% on a year-over-year basis. On average, research analysts predict that Red Cat Holdings, Inc. will post -0.68 earnings per share for the current year.

Insiders Place Their Bets

In other Red Cat news, Director Paul Funk II sold 165,028 shares of Red Cat stock in a transaction dated Thursday, June 11th. The stock was sold at an average price of $11.50, for a total value of $1,897,822.00. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. 12.50% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. State Street Corp boosted its stake in shares of Red Cat by 136.4% in the 4th 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 in the last quarter. Brevan Howard Capital Management LP acquired a new position in Red Cat during the 3rd quarter worth approximately $19,739,000. Vanguard Group Inc. lifted its stake in Red Cat by 43.9% in the 3rd quarter. Vanguard Group Inc. now owns 5,506,377 shares of the company’s stock valued at $56,991,000 after purchasing an additional 1,680,929 shares during the last quarter. Davidson Kempner Capital Management LP bought a new position in Red Cat in the 3rd quarter valued at approximately $17,286,000. Finally, Renaissance Technologies LLC acquired a new stake in Red Cat in the first quarter valued at approximately $18,533,000. Institutional investors own 37.97% of the company’s stock.

Red Cat Company Profile

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.