Red Cat (NASDAQ:RCAT) Stock Price Down 6.2% – Time to Sell?

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) dropped 6.2% during mid-day trading on Monday . The stock traded as low as $10.24 and last traded at $10.44. Approximately 9,575,537 shares traded hands during trading, a decline of 31% from the average session volume of 13,912,872 shares. The stock had previously closed at $11.13.

Analysts Set New Price Targets

Several analysts have weighed in on RCAT shares. Clear Str raised Red Cat to a “strong-buy” rating in a report on Wednesday, April 29th. Needham & Company LLC cut their price target on Red Cat from $20.00 to $15.00 and set a “buy” rating for the company in a research note on Friday, August 7th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Red Cat in a research report on Friday, July 17th. UBS Group assumed coverage on shares of Red Cat in a research note on Wednesday, May 27th. They issued a “buy” rating on the stock. Finally, LADENBURG THALM/SH SH upgraded shares of Red Cat to a “strong-buy” rating in a report on Wednesday, May 6th. 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 company’s stock. According to data from MarketBeat, the company has a consensus rating of “Buy” and a consensus price target of $20.40.

Red Cat Trading Down 2.3%

The business has a 50 day moving average of $9.45 and a 200-day moving average of $11.56. The stock has a market cap of $1.25 billion, a PE ratio of -12.59 and a beta of 1.32.

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

Insider Activity at Red Cat

In other Red Cat news, Director Christopher R. Moe sold 20,000 shares of the company’s stock in a transaction dated Tuesday, August 11th. The shares were sold at an average price of $10.51, for a total value of $210,200.00. Following the transaction, the director directly owned 200,502 shares in the company, valued at approximately $2,107,276.02. This represents a 9.07% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Nicholas Reyland Liuzza, Jr. sold 55,000 shares of the firm’s stock in a transaction dated Tuesday, August 11th. The stock was sold at an average price of $10.63, for a total transaction of $584,650.00. Following the sale, the director directly owned 489,874 shares in the company, valued at $5,207,360.62. This represents a 10.09% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 240,028 shares of company stock valued at $2,692,672 over the last quarter. Insiders own 12.50% of the company’s stock.

Hedge Funds Weigh In On Red Cat

Institutional investors have recently modified their holdings of the company. Fifth Third Bancorp purchased a new stake in Red Cat in the 1st quarter worth approximately $33,000. Allworth Financial LP purchased a new position in shares of Red Cat during the 2nd quarter worth $28,000. IFP Advisors Inc lifted its stake in shares of Red Cat by 181.1% during the 3rd quarter. IFP Advisors Inc now owns 2,670 shares of the company’s stock worth $28,000 after purchasing an additional 1,720 shares during the period. NFSG Corp boosted its holdings in shares of Red Cat by 200.0% during the first quarter. NFSG Corp now owns 3,000 shares of the company’s stock worth $39,000 after purchasing an additional 2,000 shares during the last quarter. Finally, PNC Financial Services Group Inc. boosted its holdings in shares of Red Cat by 294.6% during the first quarter. PNC Financial Services Group Inc. now owns 3,042 shares of the company’s stock worth $40,000 after purchasing an additional 2,271 shares during the last quarter. Institutional investors and hedge funds 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.