Red Cat (NASDAQ:RCAT) Trading Down 4% – Time to Sell?

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s stock price traded down 4% during mid-day trading on Tuesday . The stock traded as low as $8.20 and last traded at $8.25. 4,776,559 shares changed hands during mid-day trading, a decline of 64% from the average session volume of 13,417,096 shares. The stock had previously closed at $8.59.

Analyst Ratings Changes

Several equities research analysts recently weighed in on the company. Evercore started coverage on Red Cat in a research note on Monday. They issued an “outperform” rating and a $15.00 price target on the stock. UBS Group started coverage on shares of Red Cat in a research report on Wednesday, May 27th. They issued a “buy” rating on the stock. Wall Street Zen lowered shares of Red Cat from a “sell” rating to a “strong sell” rating in a research note on Saturday, July 18th. Piper Sandler started coverage on shares of Red Cat in a report on Wednesday. They issued a “neutral” rating and a $9.00 price objective on the stock. Finally, LADENBURG THALM/SH SH raised 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, five have assigned a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Red Cat currently has a consensus rating of “Moderate Buy” and a consensus target price of $18.00.

Red Cat Price Performance

The firm’s 50 day moving average price is $9.00 and its 200-day moving average price is $11.25. The stock has a market cap of $1.04 billion, a P/E ratio of -10.46 and a beta of 1.35.

Red Cat (NASDAQ:RCAT) last issued its earnings results on Thursday, August 6th. The company reported ($0.26) EPS for the quarter, missing the consensus estimate of ($0.21) by ($0.05). Red Cat had a negative net margin of 136.26% and a negative return on equity of 32.25%. The business had revenue of $20.20 million for the quarter, compared to analysts’ expectations of $22.65 million. On average, analysts expect that Red Cat Holdings, Inc. will post -0.78 earnings per share for the current year.

Insiders Place Their Bets

In other news, Director Christopher R. Moe sold 20,000 shares of the company’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 owned 200,502 shares of the company’s stock, valued at $2,107,276.02. This represents a 9.07% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Nicholas Reyland Liuzza, Jr. sold 55,000 shares of Red Cat stock in a transaction on Tuesday, August 11th. The stock was sold at an average price of $10.63, for a total transaction of $584,650.00. Following the transaction, the director owned 489,874 shares in the company, valued at $5,207,360.62. This represents a 10.09% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 240,028 shares of company stock valued at $2,692,672. Company insiders own 12.50% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the stock. BlackRock Inc. bought a new stake in Red Cat during the second quarter valued at about $119,610,000. State Street Corp grew its position in shares of Red Cat by 136.4% during the fourth quarter. State Street Corp now owns 6,612,153 shares of the company’s stock worth $52,434,000 after purchasing an additional 3,815,310 shares in the last quarter. Van ECK Associates Corp bought a new stake in Red Cat during the 2nd quarter valued at approximately $27,193,000. Vanguard Group Inc. lifted its holdings in Red Cat by 43.9% in the 3rd quarter. Vanguard Group Inc. now owns 5,506,377 shares of the company’s stock worth $56,991,000 after purchasing an additional 1,680,929 shares in the last quarter. Finally, Davidson Kempner Capital Management LP purchased a new position in Red Cat in the 3rd quarter worth approximately $17,286,000. 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.