Red Cat (NASDAQ:RCAT) Trading Down 9.6% – Should You Sell?

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s stock price was down 9.6% during mid-day trading on Friday . The company traded as low as $13.00 and last traded at $13.50. Approximately 10,700,157 shares changed hands during mid-day trading, a decline of 35% from the average daily volume of 16,386,600 shares. The stock had previously closed at $14.93.

Analyst Ratings Changes

A number of equities research analysts have weighed in on RCAT shares. Wall Street Zen downgraded Red Cat from a “hold” rating to a “sell” rating in a report on Saturday, October 4th. LADENBURG THALM/SH SH raised shares of Red Cat to a “strong-buy” rating in a research report on Thursday, December 18th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Red Cat in a research report on Thursday, January 22nd. Northland Securities set a $22.00 target price on shares of Red Cat in a research note on Tuesday, January 20th. Finally, Needham & Company LLC raised their price target on shares of Red Cat from $12.00 to $16.00 and gave the stock a “buy” rating in a report on Tuesday, January 13th. Two analysts have rated the stock with a Strong Buy rating, one has assigned a Buy rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Buy” and an average target price of $19.00.

Red Cat Stock Down 9.6%

The business has a 50-day moving average price of $10.11 and a two-hundred day moving average price of $10.11. The company has a market capitalization of $1.61 billion, a price-to-earnings ratio of -30.68 and a beta of 1.48.

Red Cat (NASDAQ:RCAT) last announced its quarterly earnings results on Thursday, November 13th. The company reported ($0.16) EPS 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 analyst estimates of $8.18 million. On average, sell-side analysts anticipate that Red Cat Holdings, Inc. will post -0.5 EPS for the current fiscal year.

Institutional Investors Weigh In On Red Cat

Institutional investors and hedge funds have recently bought and sold shares of the stock. Moors & Cabot Inc. increased its stake 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 buying an additional 111,225 shares during the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. grew its holdings 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 valued at $1,148,000 after acquiring an additional 37,407 shares in the last quarter. Truist Financial Corp purchased a new stake in shares of Red Cat during the second quarter valued at approximately $167,000. Rockefeller Capital Management L.P. bought a new stake in Red Cat during the second quarter worth $546,000. Finally, Wealth Enhancement Advisory Services LLC purchased a new position in Red Cat in the second quarter worth $180,000. 37.97% of the stock is 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.