Red Cat (NASDAQ:RCAT) Trading Down 14% – What’s Next?

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) were down 14% during trading on Friday . The company traded as low as $12.26 and last traded at $12.68. Approximately 16,764,656 shares changed hands during mid-day trading, an increase of 7% from the average daily volume of 15,604,924 shares. The stock had previously closed at $14.74.

Analyst Ratings Changes

Several analysts have recently weighed in on RCAT shares. LADENBURG THALM/SH SH upgraded shares of Red Cat to a “strong-buy” rating in a research report on Wednesday, May 6th. Needham & Company LLC upped their target price on shares of Red Cat from $16.00 to $20.00 and gave the stock a “buy” rating in a research report on Thursday, March 19th. UBS Group assumed coverage on Red Cat in a research report on Wednesday, May 27th. They set a “buy” rating on the stock. Wall Street Zen raised Red Cat from a “strong sell” rating to a “sell” rating in a research note on Saturday. Finally, Roth Mkm began coverage on Red Cat in a report on Monday, June 1st. They issued a “buy” rating and a $25.00 price objective for the company. Two research analysts have rated the stock with a Strong Buy rating, four have given a Buy rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Buy” and a consensus price target of $21.40.

Red Cat Trading Down 14.0%

The stock has a market capitalization of $1.56 billion, a P/E ratio of -18.11 and a beta of 1.23. The stock’s fifty day moving average price is $11.86 and its two-hundred day moving average price is $11.63.

Red Cat (NASDAQ:RCAT) last released its earnings results on Thursday, May 7th. The company reported ($0.22) EPS for the quarter, missing the consensus estimate of ($0.12) by ($0.10). The business had revenue of $15.47 million for the quarter, compared to the consensus estimate of $17.63 million. Red Cat had a negative net margin of 138.36% and a negative return on equity of 35.86%. The firm’s quarterly revenue was up 849.1% on a year-over-year basis. As a group, analysts expect that Red Cat Holdings, Inc. will post -0.68 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Red Cat

Several institutional investors have recently bought and sold shares of RCAT. Norris Financial Group LLC bought a new position in Red Cat during the 1st quarter worth approximately $194,000. Western Wealth Management LLC lifted its position in Red Cat by 4.5% in the first quarter. Western Wealth Management LLC now owns 36,722 shares of the company’s stock valued at $481,000 after purchasing an additional 1,570 shares during the last quarter. Bank of America Corp DE boosted its stake in shares of Red Cat by 46.1% during the first quarter. Bank of America Corp DE now owns 203,366 shares of the company’s stock valued at $2,662,000 after purchasing an additional 64,145 shares during the period. Janus Henderson Group PLC boosted its stake in shares of Red Cat by 733.7% during the first quarter. Janus Henderson Group PLC now owns 392,808 shares of the company’s stock valued at $5,141,000 after purchasing an additional 345,693 shares during the period. Finally, Amundi bought a new position in shares of Red Cat in the first quarter worth approximately $135,000. 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.