Red Cat (NASDAQ:RCAT) Shares Down 1.9% – Here’s Why

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) fell 1.9% on Wednesday . The company traded as low as $8.80 and last traded at $8.93. Approximately 3,874,825 shares changed hands during mid-day trading, a decline of 72% from the average session volume of 13,603,139 shares. The stock had previously closed at $9.10.

Analysts Set New Price Targets

Several equities research analysts recently weighed in on the stock. Wall Street Zen cut shares of Red Cat from a “sell” rating to a “strong sell” rating in a research report on Saturday, July 18th. Roth Capital initiated coverage on shares of Red Cat in a research note on Monday, June 1st. They issued a “buy” rating and a $25.00 price objective for the company. HC Wainwright restated a “buy” rating and set a $20.00 target price on shares of Red Cat in a research report on Friday, August 7th. Needham & Company LLC dropped their price target on Red Cat from $20.00 to $15.00 and set a “buy” rating for the company in a research report on Friday, August 7th. Finally, LADENBURG THALM/SH SH upgraded Red Cat to a “strong-buy” rating in a research report on Wednesday, May 6th. Two equities research analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has given a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of “Buy” and a consensus price target of $20.40.

Red Cat Stock Up 3.9%

The company’s 50 day simple moving average is $9.16 and its 200-day simple moving average is $11.36. The firm has a market cap of $1.14 billion, a P/E ratio of -11.46 and a beta of 1.31.

Red Cat (NASDAQ:RCAT) last issued its quarterly earnings results 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). Red Cat had a negative return on equity of 32.25% and a negative net margin of 136.26%.The business had revenue of $20.20 million during the quarter, compared to analysts’ expectations of $22.65 million. Equities research analysts predict that Red Cat Holdings, Inc. will post -0.78 EPS for the current year.

Insider Buying and Selling

In related news, Director Paul Funk II sold 165,028 shares of Red Cat stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $11.50, for a total transaction of $1,897,822.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Christopher R. Moe sold 20,000 shares of the business’s stock in a transaction dated Tuesday, August 11th. The shares were sold at an average price of $10.51, for a total transaction of $210,200.00. Following the completion of the sale, the director directly owned 200,502 shares of the company’s stock, valued at approximately $2,107,276.02. This trade represents a 9.07% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 240,028 shares of company stock valued at $2,692,672 in the last 90 days. Company insiders own 12.50% of the company’s stock.

Institutional Investors Weigh In On Red Cat

Institutional investors and hedge funds have recently bought and sold shares of the company. BlackRock Inc. purchased a new position in shares of Red Cat during the second quarter valued at $119,610,000. State Street Corp increased its position in Red Cat by 136.4% during 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 during the period. Vanguard Group Inc. increased its position in Red Cat by 9.0% during the 4th 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. Van ECK Associates Corp purchased a new stake in shares of Red Cat in the 2nd quarter worth approximately $27,193,000. Finally, Geode Capital Management LLC lifted its position in shares of Red Cat by 13.4% in the 4th quarter. Geode Capital Management LLC now owns 2,520,524 shares of the company’s stock worth $19,991,000 after purchasing an additional 297,967 shares during the period. 37.97% of the stock is owned by institutional investors.

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.