Red Cat (NASDAQ:RCAT) Trading Down 3.6% – Here’s Why

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s stock price was down 3.6% during trading on Thursday . The stock traded as low as $9.05 and last traded at $9.53. Approximately 7,065,084 shares changed hands during mid-day trading, a decline of 49% from the average session volume of 13,789,553 shares. The stock had previously closed at $9.89.

Wall Street Analyst Weigh In

A number of research firms recently commented on RCAT. LADENBURG THALM/SH SH raised Red Cat to a “strong-buy” rating in a report on Wednesday, May 6th. Roth Capital started coverage on Red Cat in a research note on Monday, June 1st. They set a “buy” rating and a $25.00 price target for the company. UBS Group began coverage on Red Cat in a report on Wednesday, May 27th. They set a “buy” rating for the company. HC Wainwright reiterated a “buy” rating and set a $20.00 target price on shares of Red Cat in a research report on Friday, August 7th. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of Red Cat in a report on Friday, July 17th. Two equities research analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, Red Cat presently has an average rating of “Buy” and a consensus price target of $20.40.

Red Cat Trading Up 0.9%

The stock has a market capitalization of $1.18 billion, a P/E ratio of -11.88 and a beta of 1.31. The company has a 50-day moving average price of $9.35 and a 200 day moving average price of $11.48.

Red Cat (NASDAQ:RCAT) last posted its quarterly earnings data on Thursday, August 6th. The company reported ($0.26) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.21) by ($0.05). Red Cat had a negative net margin of 136.26% and a negative return on equity of 32.25%. The company had revenue of $20.20 million for the quarter, compared to analyst estimates of $22.65 million. As a group, research analysts expect that Red Cat Holdings, Inc. will post -0.78 earnings per share for the current year.

Insider Buying and Selling at Red Cat

In other Red Cat news, Director Paul Funk II sold 165,028 shares of the business’s stock in a transaction that occurred on Thursday, June 11th. The stock was sold at an average price of $11.50, for a total value of $1,897,822.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Christopher R. Moe sold 20,000 shares of the business’s stock in a transaction on Tuesday, August 11th. The shares were sold at an average price of $10.51, for a total transaction of $210,200.00. Following the completion of the transaction, the director owned 200,502 shares of the company’s stock, valued at approximately $2,107,276.02. This represents a 9.07% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 240,028 shares of company stock valued at $2,692,672. 12.50% of the stock is owned by company insiders.

Hedge Funds Weigh In On Red Cat

Large investors have recently bought and sold shares of the business. BlackRock Inc. acquired a new stake in Red Cat in the second quarter valued at approximately $119,610,000. State Street Corp lifted its position in shares of Red Cat by 136.4% during the 4th quarter. State Street Corp now owns 6,612,153 shares of the company’s stock valued at $52,434,000 after buying an additional 3,815,310 shares in the last quarter. Vanguard Group Inc. grew its stake in Red Cat by 9.0% in the 4th quarter. Vanguard Group Inc. now owns 6,000,037 shares of the company’s stock valued at $47,580,000 after acquiring an additional 493,660 shares during the period. Van ECK Associates Corp acquired a new stake in Red Cat in the 2nd quarter valued at $27,193,000. Finally, Geode Capital Management LLC lifted its stake in Red Cat by 13.4% in the 4th quarter. Geode Capital Management LLC now owns 2,520,524 shares of the company’s stock valued at $19,991,000 after buying an additional 297,967 shares in the last quarter. Institutional investors and hedge funds own 37.97% of the company’s stock.

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.