Red Cat (NASDAQ:RCAT) Stock Price Down 2.2% – Here’s Why

Red Cat Holdings, Inc. (NASDAQ:RCAT) dropped 2.2% during trading on Tuesday . The stock traded as low as $9.80 and last traded at $10.21. Approximately 9,050,213 shares changed hands during trading, a decline of 35% from the average daily volume of 13,877,871 shares. The stock had previously closed at $10.44.

Analyst Upgrades and Downgrades

A number of equities analysts recently issued reports on RCAT shares. Roth Capital began coverage on shares of 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 reiterated a “buy” rating and issued a $20.00 price target on shares of Red Cat in a research report on Friday, August 7th. Needham & Company LLC dropped their price target on shares of Red Cat from $20.00 to $15.00 and set a “buy” rating on the stock in a research note on Friday, August 7th. Wall Street Zen cut shares of Red Cat from a “sell” rating to a “strong sell” rating in a research note on Saturday, July 18th. Finally, LADENBURG THALM/SH SH raised shares of Red Cat to a “strong-buy” rating in a research report on Wednesday, May 6th. Two 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 company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Buy” and an average target price of $20.40.

Red Cat Stock Down 4.3%

The stock has a market cap of $1.16 billion, a P/E ratio of -11.78 and a beta of 1.31. The firm has a 50 day moving average price of $9.43 and a 200 day moving average price of $11.52.

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

Insiders Place Their Bets

In other news, Director Paul Funk II sold 165,028 shares of the stock in a transaction on Thursday, June 11th. The shares were sold at an average price of $11.50, for a total value of $1,897,822.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Christopher R. Moe sold 20,000 shares of the firm’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 owned 200,502 shares in the company, valued at $2,107,276.02. The trade was a 9.07% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 240,028 shares of company stock worth $2,692,672 over the last three months. 12.50% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Red Cat

Institutional investors and hedge funds have recently bought and sold shares of the business. Allworth Financial LP purchased a new position in shares of Red Cat in the second quarter valued at about $28,000. IFP Advisors Inc grew its position in shares of Red Cat by 181.1% during the third quarter. IFP Advisors Inc now owns 2,670 shares of the company’s stock worth $28,000 after purchasing an additional 1,720 shares in the last quarter. Fifth Third Bancorp bought a new stake in Red Cat during the 1st quarter valued at approximately $33,000. California State Teachers Retirement System bought a new stake in Red Cat during the 2nd quarter valued at approximately $34,000. Finally, NFSG Corp lifted its holdings in Red Cat by 200.0% in the 1st quarter. NFSG Corp now owns 3,000 shares of the company’s stock worth $39,000 after purchasing an additional 2,000 shares in the last quarter. 37.97% of the stock is owned by 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.