Red Cat (NASDAQ:RCAT) Stock Price Down 2.1% – What’s Next?

Red Cat Holdings, Inc. (NASDAQ:RCAT) shares fell 2.1% during mid-day trading on Friday. The stock traded as low as $6.66 and last traded at $6.66. 5,732,435 shares were traded during mid-day trading, a decline of 56% from the average daily volume of 13,020,315 shares. The stock had previously closed at $6.80.

Analyst Upgrades and Downgrades

Several analysts have commented on the stock. Weiss Ratings reissued a “sell (d-)” rating on shares of Red Cat in a research report on Friday, July 17th. Northland Securities set a $13.00 price objective on shares of Red Cat in a research note on Thursday, September 17th. Piper Sandler started coverage on shares of Red Cat in a research note on Wednesday, September 2nd. They issued a “neutral” rating and a $9.00 target price for the company. Evercore began coverage on Red Cat in a report on Monday, August 31st. They set an “outperform” rating and a $15.00 price objective for the company. Finally, Roth Capital started coverage on Red Cat in a research note on Monday, June 1st. They issued a “buy” rating and a $25.00 price target for the company. Two equities research analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Red Cat currently has a consensus rating of “Moderate Buy” and an average target price of $16.71.

Red Cat Trading Down 2.1%

The firm has a 50-day moving average of $8.44 and a 200-day moving average of $10.65. The stock has a market capitalization of $817.45 million, a price-to-earnings ratio of -8.22 and a beta of 1.35.

Red Cat (NASDAQ:RCAT) last issued its quarterly earnings results on Thursday, August 6th. The company reported ($0.26) EPS for the quarter, missing analysts’ consensus estimates of ($0.21) by ($0.05). The firm had revenue of $20.20 million for the quarter, compared to analyst estimates of $22.65 million. Red Cat had a negative return on equity of 32.25% and a negative net margin of 136.26%. On average, equities research analysts anticipate that Red Cat Holdings, Inc. will post -0.79 EPS for the current year.

Insider Buying and Selling

In related news, Director Christopher Moe sold 20,000 shares of Red Cat stock in a transaction dated Tuesday, August 11th. The stock was sold at an average price of $10.51, for a total transaction of $210,200.00. Following the completion of the sale, the director owned 200,502 shares of the company’s stock, valued at $2,107,276.02. The trade was a 9.07% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Jeffrey Thompson sold 150,000 shares of Red Cat stock in a transaction on Tuesday, September 15th. The shares were sold at an average price of $7.74, for a total transaction of $1,161,000.00. Following the completion of the sale, the chief executive officer directly owned 11,712,202 shares in the company, valued at $90,652,443.48. This represents a 1.26% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 225,000 shares of company stock valued at $1,955,850 over the last quarter. 12.50% of the stock is currently owned by company insiders.

Institutional Trading of Red Cat

A number of institutional investors and hedge funds have recently modified their holdings of RCAT. State Street Corp raised its position in shares of Red Cat by 68.8% during the 2nd quarter. State Street Corp now owns 12,091,447 shares of the company’s stock worth $128,774,000 after purchasing an additional 4,928,540 shares during the last quarter. BlackRock Inc. purchased a new position in Red Cat in the 2nd quarter valued at about $119,610,000. Van ECK Associates Corp acquired a new stake in Red Cat in the 2nd quarter worth about $27,193,000. Renaissance Technologies LLC acquired a new stake in Red Cat in the 1st quarter worth about $18,533,000. Finally, AWM Investment Company Inc. purchased a new stake in Red Cat during the 2nd quarter worth approximately $9,313,000. Hedge funds and other institutional investors own 37.97% of the company’s stock.

Red Cat Company Profile

Red Cat Holdings, Inc is a drone technology company that develops and supplies small unmanned aircraft systems for military, government, public safety and commercial applications. Its solutions are designed to support intelligence, surveillance and reconnaissance, situational awareness, and other missions requiring portable and rapidly deployable aerial systems.

Through its Teal Drones business, Red Cat offers the Teal 2 and related Black Widow systems, compact drones designed for defense and public-safety users.