Red Cat (NASDAQ:RCAT) Shares Down 8% – Here’s Why

Red Cat Holdings, Inc. (NASDAQ:RCAT) shares were down 8% during trading on Tuesday . The company traded as low as $12.33 and last traded at $12.62. Approximately 6,655,879 shares changed hands during trading, a decline of 55% from the average daily volume of 14,814,613 shares. The stock had previously closed at $13.71.

Analyst Upgrades and Downgrades

Several research analysts recently weighed in on RCAT shares. Weiss Ratings restated a “sell (d-)” rating on shares of Red Cat in a report on Thursday, January 22nd. LADENBURG THALM/SH SH raised shares of Red Cat to a “strong-buy” rating in a research report on Thursday, December 18th. Needham & Company LLC raised their target price on shares of Red Cat from $12.00 to $16.00 and gave the stock a “buy” rating in a research report on Tuesday, January 13th. Finally, Northland Securities set a $22.00 target price on shares of Red Cat in a research note on Tuesday, January 20th. Two research analysts have rated the stock with a Strong Buy rating, one has assigned a Buy rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Red Cat currently has a consensus rating of “Buy” and an average target price of $19.00.

Red Cat Stock Down 8.0%

The business’s fifty day moving average is $10.95 and its 200-day moving average is $10.24. The stock has a market capitalization of $1.51 billion, a PE ratio of -28.68 and a beta of 1.50.

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

Hedge Funds Weigh In On Red Cat

Large investors have recently modified their holdings of the company. Moors & Cabot Inc. increased its holdings in Red Cat by 65.6% in the 2nd quarter. Moors & Cabot Inc. now owns 280,825 shares of the company’s stock valued at $2,044,000 after purchasing an additional 111,225 shares in the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. boosted its position in shares of Red Cat by 31.1% in the second quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 157,704 shares of the company’s stock worth $1,148,000 after buying an additional 37,407 shares during the period. Truist Financial Corp acquired a new stake in shares of Red Cat in the second quarter valued at about $167,000. Rockefeller Capital Management L.P. purchased a new stake in shares of Red Cat during the 2nd quarter valued at about $546,000. Finally, AWM Investment Company Inc. lifted its position in Red Cat by 15.3% during the 2nd quarter. AWM Investment Company Inc. now owns 2,037,616 shares of the company’s stock worth $14,834,000 after acquiring an additional 269,942 shares in the last quarter. 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.