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

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) were down 2% during mid-day trading on Monday . The stock traded as low as $7.64 and last traded at $7.80. Approximately 5,330,021 shares were traded during trading, a decline of 59% from the average session volume of 13,060,030 shares. The stock had previously closed at $7.96.

Wall Street Analysts Forecast Growth

A number of brokerages recently weighed in on RCAT. HC Wainwright restated a “buy” rating and set a $20.00 price objective on shares of Red Cat in a research note on Friday, August 7th. Needham & Company LLC cut their target price on Red Cat from $20.00 to $15.00 and set a “buy” rating on the stock in a research note on Friday, August 7th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Red Cat in a report on Friday, July 17th. Evercore initiated coverage on shares of Red Cat in a research report on Monday, August 31st. They set an “outperform” rating and a $15.00 price target for the company. Finally, UBS Group began coverage on shares of Red Cat in a report on Wednesday, May 27th. They issued a “buy” rating on the stock. Two equities research analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $18.00.

Red Cat Stock Performance

The stock has a 50 day moving average of $8.68 and a 200-day moving average of $11.00. The company has a market cap of $978.24 million, a PE ratio of -9.84 and a beta of 1.35.

Red Cat (NASDAQ:RCAT) last released its quarterly earnings data on Thursday, August 6th. The company reported ($0.26) EPS 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 analysts’ expectations of $22.65 million. Red Cat had a negative net margin of 136.26% and a negative return on equity of 32.25%. Equities research analysts forecast that Red Cat Holdings, Inc. will post -0.77 EPS for the current year.

Insider Buying and Selling

In related news, Director Christopher R. Moe sold 20,000 shares of the firm’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 in the company, valued at approximately $2,107,276.02. This trade represents a 9.07% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Nicholas Reyland Liuzza, Jr. sold 55,000 shares of Red Cat stock in a transaction that occurred 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 sale, the director directly owned 489,874 shares in the company, valued at approximately $5,207,360.62. The trade was a 10.09% decrease in their position. The SEC filing for this sale provides additional information. Insiders own 12.50% of the company’s stock.

Institutional Trading of Red Cat

A number of institutional investors and hedge funds have recently added to or reduced their stakes in RCAT. The Manufacturers Life Insurance Company increased its stake in Red Cat by 4.2% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 49,008 shares of the company’s stock worth $522,000 after buying an additional 1,961 shares during the period. WINTON GROUP Ltd grew its position in shares of Red Cat by 289.5% in the 2nd quarter. WINTON GROUP Ltd now owns 107,890 shares of the company’s stock valued at $1,149,000 after buying an additional 80,190 shares during the last quarter. Integrated Wealth Concepts LLC purchased a new stake in Red Cat in the second quarter valued at $42,000. Arizona State Retirement System boosted its stake in Red Cat by 23.4% in the second quarter. Arizona State Retirement System now owns 36,426 shares of the company’s stock valued at $388,000 after acquiring an additional 6,917 shares in the last quarter. Finally, Corient Private Wealth LP grew its holdings in shares of Red Cat by 135.5% during the second quarter. Corient Private Wealth LP now owns 27,310 shares of the company’s stock worth $291,000 after purchasing an additional 15,712 shares during the last quarter. Hedge funds and other institutional investors own 37.97% of the company’s stock.

About Red Cat

Red Cat Holdings, Inc is a drone technology company that develops and supplies small unmanned aircraft systems for military, government, public safety and commercial applications. Its solutions are designed to support intelligence, surveillance and reconnaissance, situational awareness, and other missions requiring portable and rapidly deployable aerial systems.

Through its Teal Drones business, Red Cat offers the Teal 2 and related Black Widow systems, compact drones designed for defense and public-safety users.