Red Cat (NASDAQ:RCAT) Shares Gap Down – Time to Sell?

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s stock price gapped down before the market opened on Wednesday . The stock had previously closed at $8.59, but opened at $8.17. Red Cat shares last traded at $8.3880, with a volume of 1,728,038 shares changing hands.

Wall Street Analyst Weigh In

A number of brokerages recently commented on RCAT. HC Wainwright initiated coverage on Red Cat in a research report on Wednesday, May 27th. They issued a “buy” rating and a $20.00 price target on the stock. UBS Group assumed coverage on shares of Red Cat in a research report on Wednesday, May 27th. They set a “buy” rating for the company. Roth Capital started coverage on shares of Red Cat in a research note on Monday, June 1st. They set a “buy” rating and a $25.00 price objective on the stock. Clear Str raised shares of Red Cat to a “strong-buy” rating in a report on Wednesday, April 29th. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Red Cat in a research report on Friday. Two analysts have rated the stock with a Strong Buy rating, four have given a Buy rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Buy” and an average target price of $21.40.

Red Cat Stock Performance

The stock has a fifty day simple moving average of $10.45 and a two-hundred day simple moving average of $12.16. The stock has a market cap of $1.01 billion, a price-to-earnings ratio of -11.73 and a beta of 1.29.

Red Cat (NASDAQ:RCAT) last posted its quarterly earnings results on Thursday, May 7th. The company reported ($0.22) EPS for the quarter, missing analysts’ consensus estimates of ($0.12) by ($0.10). Red Cat had a negative return on equity of 35.86% and a negative net margin of 138.36%.The business had revenue of $15.47 million for the quarter, compared to analyst estimates of $17.63 million. Red Cat’s quarterly revenue was up 849.1% on a year-over-year basis. Equities analysts expect that Red Cat Holdings, Inc. will post -0.67 earnings per share for the current fiscal year.

Insider Transactions at Red Cat

In other Red Cat news, Director Paul Funk II sold 165,028 shares of Red Cat stock in a transaction dated Thursday, June 11th. The stock was sold at an average price of $11.50, for a total value of $1,897,822.00. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. 12.50% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. State Street Corp boosted its stake in shares of Red Cat by 136.4% in the 4th quarter. State Street Corp now owns 6,612,153 shares of the company’s stock valued at $52,434,000 after purchasing an additional 3,815,310 shares in the last quarter. Vanguard Group Inc. increased its position in Red Cat by 43.9% during the 3rd quarter. Vanguard Group Inc. now owns 5,506,377 shares of the company’s stock worth $56,991,000 after purchasing an additional 1,680,929 shares in the last quarter. Davidson Kempner Capital Management LP bought a new position in Red Cat in the 3rd quarter valued at approximately $17,286,000. Renaissance Technologies LLC bought a new position in Red Cat in the 1st quarter valued at approximately $18,533,000. Finally, CenterBook Partners LP boosted its position in Red Cat by 1,872.4% in the fourth quarter. CenterBook Partners LP now owns 1,105,132 shares of the company’s stock valued at $8,764,000 after buying an additional 1,049,101 shares in the last quarter. Institutional investors own 37.97% of the company’s stock.

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.