Red Cat (NASDAQ:RCAT) Stock Price Down 3.6% – Should You Sell?

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) fell 3.6% during trading on Thursday . The company traded as low as $9.05 and last traded at $9.53. Approximately 7,065,084 shares changed hands during mid-day trading, a decline of 49% from the average daily volume of 13,789,553 shares. The stock had previously closed at $9.89.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on RCAT. Wall Street Zen cut shares of Red Cat from a “sell” rating to a “strong sell” rating in a report on Saturday, July 18th. Clear Str raised shares of Red Cat to a “strong-buy” rating in a research report on Wednesday, April 29th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Red Cat in a research note on Friday, July 17th. UBS Group started coverage on shares of Red Cat in a research note on Wednesday, May 27th. They set a “buy” rating for the company. Finally, HC Wainwright reissued a “buy” rating and set a $20.00 price target on shares of Red Cat in a report on Friday, August 7th. Two analysts have rated the stock with a Strong Buy rating, four have given a Buy rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Buy” and an average target price of $20.40.

Red Cat Stock Performance

The stock has a market cap of $1.17 billion, a PE ratio of -11.77 and a beta of 1.31. The company’s 50-day moving average price is $9.43 and its 200 day moving average price is $11.52.

Red Cat (NASDAQ:RCAT) last issued its quarterly earnings data on Thursday, August 6th. The company reported ($0.26) earnings per share 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 return on equity of 32.25% and a negative net margin of 136.26%. On average, sell-side analysts anticipate that Red Cat Holdings, Inc. will post -0.78 earnings per share for the current fiscal year.

Insider Buying and Selling at Red Cat

In other news, Director Nicholas Reyland Liuzza, Jr. sold 55,000 shares of the business’s stock in a transaction on Tuesday, August 11th. The shares were sold at an average price of $10.63, for a total transaction of $584,650.00. Following the completion of the sale, the director owned 489,874 shares of the company’s stock, valued at $5,207,360.62. The trade was a 10.09% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Christopher R. Moe sold 20,000 shares of the business’s stock in a transaction on Tuesday, August 11th. The shares were sold at an average price of $10.51, for a total transaction of $210,200.00. Following the sale, the director directly owned 200,502 shares of the company’s stock, valued at approximately $2,107,276.02. The trade was a 9.07% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 240,028 shares of company stock valued at $2,692,672. Insiders own 12.50% of the company’s stock.

Institutional Investors Weigh In On Red Cat

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Bank of America Corp DE raised its stake in Red Cat by 407.0% during the 4th quarter. Bank of America Corp DE now owns 3,397 shares of the company’s stock worth $44,000 after acquiring an additional 2,727 shares during the period. Royal Bank of Canada boosted its position in shares of Red Cat by 76.4% in the first quarter. Royal Bank of Canada now owns 57,800 shares of the company’s stock worth $340,000 after purchasing an additional 25,031 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in shares of Red Cat by 63.6% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 229,259 shares of the company’s stock worth $1,348,000 after purchasing an additional 89,095 shares during the period. Goldman Sachs Group Inc. increased its stake in shares of Red Cat by 28.7% in the first quarter. Goldman Sachs Group Inc. now owns 266,099 shares of the company’s stock worth $1,565,000 after purchasing an additional 59,334 shares in the last quarter. Finally, Cetera Investment Advisers purchased a new stake in shares of Red Cat in the second quarter worth $97,000. 37.97% of the stock is owned by hedge funds and other institutional investors.

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.