Red Cat (NASDAQ:RCAT) Trading Down 7.1% – What’s Next?

Red Cat Holdings, Inc. (NASDAQ:RCAT) shares were down 7.1% on Friday . The stock traded as low as $8.42 and last traded at $8.4450. Approximately 1,149,152 shares were traded during mid-day trading, a decline of 87% from the average daily volume of 8,635,492 shares. The stock had previously closed at $9.09.

Wall Street Analysts Forecast Growth

A number of research firms have recently issued reports on RCAT. Weiss Ratings reiterated a “sell (d-)” rating on shares of Red Cat in a research note on Wednesday, October 8th. Wall Street Zen downgraded Red Cat from a “hold” rating to a “sell” rating in a research report on Saturday, October 4th. LADENBURG THALM/SH SH raised Red Cat to a “strong-buy” rating in a research note on Thursday, December 18th. Finally, Needham & Company LLC reduced their price objective on shares of Red Cat from $17.00 to $12.00 and set a “buy” rating for the company in a research note on Friday, November 14th. Two equities research analysts have rated the stock with a Strong Buy rating, two have assigned a Buy rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Red Cat has an average rating of “Buy” and a consensus target price of $14.00.

Red Cat Stock Performance

The company has a market cap of $1.00 billion, a price-to-earnings ratio of -18.99 and a beta of 1.48. The company’s 50 day moving average price is $8.65 and its 200 day moving average price is $9.27.

Red Cat (NASDAQ:RCAT) last posted its quarterly earnings data on Thursday, November 13th. The company reported ($0.16) earnings per share for the quarter, missing the consensus estimate of ($0.07) by ($0.09). The business had revenue of $9.65 million for the quarter, compared to analysts’ expectations of $8.18 million. As a group, analysts predict that Red Cat Holdings, Inc. will post -0.5 EPS for the current year.

Insider Buying and Selling at Red Cat

In other Red Cat news, Director Christopher R. Moe sold 10,000 shares of the business’s stock in a transaction dated Monday, September 29th. The shares were sold at an average price of $10.91, for a total transaction of $109,100.00. Following the sale, the director directly owned 53,073 shares of the company’s stock, valued at $579,026.43. The trade was a 15.85% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. 15.30% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the company. IFP Advisors Inc grew its stake in 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 buying an additional 1,720 shares in the last quarter. Montag A & Associates Inc. lifted its holdings in shares of Red Cat by 552.0% during the third quarter. Montag A & Associates Inc. now owns 3,260 shares of the company’s stock worth $34,000 after purchasing an additional 2,760 shares during the period. California State Teachers Retirement System bought a new stake in shares of Red Cat in the 2nd quarter valued at about $34,000. Global Retirement Partners LLC bought a new position in Red Cat during the 3rd quarter worth approximately $36,000. Finally, Caitong International Asset Management Co. Ltd boosted its position in Red Cat by 28,681.0% during the second quarter. Caitong International Asset Management Co. Ltd now owns 6,044 shares of the company’s stock valued at $44,000 after acquiring an additional 6,023 shares during the last quarter. Institutional investors own 37.97% of the company’s stock.

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.