Red Cat (NASDAQ:RCAT) Shares Down 8.6% – Should You Sell?

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) were down 8.6% during trading on Monday . The company traded as low as $11.18 and last traded at $11.59. Approximately 15,287,313 shares were traded during trading, a decline of 8% from the average daily volume of 16,686,357 shares. The stock had previously closed at $12.68.

Analysts Set New Price Targets

A number of brokerages have issued reports on RCAT. Weiss Ratings reiterated a “sell (d-)” rating on shares of Red Cat in a research report on Thursday, January 22nd. Wall Street Zen upgraded Red Cat from a “sell” rating to a “hold” rating in a report on Saturday, March 21st. Northland Securities set a $22.00 price objective on Red Cat in a research note on Tuesday, January 20th. LADENBURG THALM/SH SH boosted their target price on Red Cat from $15.00 to $20.00 and gave the stock a “buy” rating in a research report on Tuesday, March 3rd. Finally, Needham & Company LLC upped their target price on Red Cat from $16.00 to $20.00 and gave the company a “buy” rating in a report on Thursday, March 19th. Two research analysts have rated the stock with a Buy rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, Red Cat currently has an average rating of “Hold” and an average price target of $20.67.

Red Cat Stock Performance

The company has a market capitalization of $1.40 billion, a PE ratio of -15.45 and a beta of 1.53. The stock’s fifty day simple moving average is $14.05 and its 200-day simple moving average is $11.41.

Red Cat (NASDAQ:RCAT) last issued its quarterly earnings results on Wednesday, March 18th. The company reported ($0.17) EPS for the quarter, missing analysts’ consensus estimates of ($0.14) by ($0.03). The firm had revenue of $26.24 million for the quarter, compared to analysts’ expectations of $24.50 million. Red Cat had a negative return on equity of 38.86% and a negative net margin of 176.96%. On average, equities analysts anticipate that Red Cat Holdings, Inc. will post -0.5 EPS for the current year.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the business. IFP Advisors Inc boosted its holdings 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 during the last quarter. Montag A & Associates Inc. increased its stake in Red Cat by 552.0% in the third quarter. Montag A & Associates Inc. now owns 3,260 shares of the company’s stock valued at $34,000 after purchasing an additional 2,760 shares during the last quarter. Bank of America Corp DE increased its stake in Red Cat by 407.0% in the fourth quarter. Bank of America Corp DE now owns 3,397 shares of the company’s stock valued at $44,000 after purchasing an additional 2,727 shares during the last quarter. Global Retirement Partners LLC purchased a new position in Red Cat during the third quarter worth about $36,000. Finally, Penserra Capital Management LLC acquired a new stake in Red Cat in the 3rd quarter worth about $46,000. 37.97% of the stock is currently owned by institutional investors and hedge funds.

Red Cat Company Profile

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.