Red Cat (NASDAQ:RCAT) Shares Down 7.2% – Should You Sell?

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s stock price was down 7.2% during mid-day trading on Wednesday . The stock traded as low as $12.01 and last traded at $12.15. Approximately 13,536,592 shares were traded during mid-day trading, a decline of 19% from the average daily volume of 16,613,682 shares. The stock had previously closed at $13.09.

Analyst Ratings Changes

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

Red Cat Stock Down 7.2%

The firm has a market cap of $1.47 billion, a price-to-earnings ratio of -16.20 and a beta of 1.53. The firm has a fifty day moving average price of $13.98 and a 200-day moving average price of $11.43.

Red Cat (NASDAQ:RCAT) last released its earnings results on Wednesday, March 18th. The company reported ($0.17) EPS for the quarter, missing the consensus estimate of ($0.14) by ($0.03). Red Cat had a negative net margin of 176.96% and a negative return on equity of 38.86%. The business had revenue of $26.24 million during the quarter, compared to analyst estimates of $24.50 million. Equities research analysts anticipate that Red Cat Holdings, Inc. will post -0.5 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the stock. Brevan Howard Capital Management LP purchased a new stake in Red Cat in the third quarter valued at approximately $19,739,000. Tudor Investment Corp ET AL raised its stake in Red Cat by 214.0% during the third quarter. Tudor Investment Corp ET AL now owns 1,277,523 shares of the company’s stock worth $13,222,000 after purchasing an additional 870,612 shares during the period. AWM Investment Company Inc. raised its stake in Red Cat by 15.3% during the second quarter. AWM Investment Company Inc. now owns 2,037,616 shares of the company’s stock worth $14,834,000 after purchasing an additional 269,942 shares during the period. Kornitzer Capital Management Inc. KS acquired a new position in shares of Red Cat in the 3rd quarter valued at $880,000. Finally, Geode Capital Management LLC boosted its holdings in shares of Red Cat by 142.7% in the 2nd quarter. Geode Capital Management LLC now owns 1,656,720 shares of the company’s stock valued at $12,063,000 after purchasing an additional 974,121 shares during the last quarter. 37.97% of the stock is currently owned by hedge funds and other institutional investors.

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.