Red Cat (NASDAQ:RCAT) Shares Down 2% – Time to Sell?

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) dropped 2% during trading on Friday . The company traded as low as $8.24 and last traded at $8.37. Approximately 5,067,935 shares were traded during trading, a decline of 62% from the average session volume of 13,281,207 shares. The stock had previously closed at $8.54.

Wall Street Analysts Forecast Growth

A number of brokerages recently weighed in on RCAT. UBS Group assumed coverage on Red Cat in a report on Wednesday, May 27th. They issued a “buy” rating on the stock. Piper Sandler began coverage on Red Cat in a research note on Wednesday. They set a “neutral” rating and a $9.00 price target for the company. Roth Capital began coverage on Red Cat in a report on Monday, June 1st. They issued a “buy” rating and a $25.00 price objective on the stock. HC Wainwright reaffirmed a “buy” rating and issued a $20.00 price objective on shares of Red Cat in a research note on Friday, August 7th. Finally, Evercore initiated coverage on Red Cat in a report on Monday. They set an “outperform” rating and a $15.00 target price for the company. Two research analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $18.00.

Red Cat Stock Performance

The firm has a fifty day moving average of $9.00 and a 200 day moving average of $11.23. The firm has a market capitalization of $1.03 billion, a PE ratio of -10.33 and a beta of 1.35.

Red Cat (NASDAQ:RCAT) last released its quarterly earnings results on Thursday, August 6th. The company reported ($0.26) earnings per share for the quarter, missing analysts’ consensus estimates 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 company had revenue of $20.20 million during the quarter, compared to analysts’ expectations of $22.65 million. Research analysts forecast that Red Cat Holdings, Inc. will post -0.78 earnings per share for the current fiscal year.

Insider Transactions at Red Cat

In other news, Director Paul Funk, II sold 165,028 shares of the firm’s stock in a transaction dated Thursday, June 11th. The stock was sold at an average price of $11.50, for a total transaction of $1,897,822.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Christopher R. Moe sold 20,000 shares of the business’s stock in a transaction dated Tuesday, August 11th. The stock was sold at an average price of $10.51, for a total value of $210,200.00. Following the completion of the transaction, the director owned 200,502 shares in the company, valued at approximately $2,107,276.02. This trade represents a 9.07% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 240,028 shares of company stock valued at $2,692,672. Corporate insiders own 12.50% of the company’s stock.

Institutional Investors Weigh In On Red Cat

Several hedge funds and other institutional investors have recently bought and sold shares of RCAT. Bank of America Corp DE raised its position in shares of Red Cat by 407.0% in the 4th quarter. Bank of America Corp DE now owns 3,397 shares of the company’s stock valued at $44,000 after purchasing an additional 2,727 shares in the last quarter. Royal Bank of Canada grew its position in shares of Red Cat by 76.4% during the first quarter. Royal Bank of Canada now owns 57,800 shares of the company’s stock worth $340,000 after buying an additional 25,031 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in shares of Red Cat by 63.6% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 229,259 shares of the company’s stock worth $1,348,000 after buying an additional 89,095 shares in the last quarter. 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 buying an additional 59,334 shares during the last quarter. Finally, Cetera Investment Advisers bought a new stake in shares of Red Cat in the second quarter worth $97,000. 37.97% of the stock is currently 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.