Red Cat (NASDAQ:RCAT) Sets New 12-Month Low – Here’s What Happened

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s stock price reached a new 52-week low during trading on Friday. The company traded as low as $5.70 and last traded at $5.7270, with a volume of 764771 shares. The stock had previously closed at $5.91.

Wall Street Analysts Forecast Growth

A number of brokerages recently commented on RCAT. Wall Street Zen lowered Red Cat from a “sell” rating to a “strong sell” rating in a research report on Saturday, July 18th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Red Cat in a report on Friday, July 17th. HC Wainwright reaffirmed a “buy” rating and issued a $20.00 price target on shares of Red Cat in a research report on Friday, August 7th. Evercore started coverage on shares of Red Cat in a report on Monday, August 31st. They set an “outperform” rating and a $15.00 price objective on the stock. Finally, Needham & Company LLC dropped their price target on shares of Red Cat from $20.00 to $15.00 and set a “buy” rating on the stock in a research report on Friday, August 7th. Two equities research analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $16.71.

Red Cat Price Performance

The company has a 50 day simple moving average of $8.18 and a 200-day simple moving average of $10.01. The stock has a market capitalization of $712.51 million, a P/E ratio of -7.17 and a beta of 1.51.

Red Cat (NASDAQ:RCAT) last announced its quarterly earnings data on Thursday, August 6th. The company reported ($0.26) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.21) by ($0.05). The firm had revenue of $20.20 million during the quarter, compared to the consensus estimate of $22.65 million. Red Cat had a negative net margin of 136.26% and a negative return on equity of 32.25%. As a group, equities analysts forecast that Red Cat Holdings, Inc. will post -0.79 earnings per share for the current fiscal year.

Insider Activity at Red Cat

In other Red Cat news, Director Nicholas Reyland Liuzza, Jr. sold 55,000 shares of the business’s stock in a transaction on Tuesday, August 11th. The shares were sold at an average price of $10.63, for a total transaction of $584,650.00. Following the sale, the director owned 489,874 shares of the company’s stock, valued at $5,207,360.62. The trade was a 10.09% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. 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 sale, the director directly owned 200,502 shares in the company, valued at $2,107,276.02. The trade was a 9.07% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 225,000 shares of company stock worth $1,955,850. 12.50% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Red Cat

Several hedge funds have recently made changes to their positions in the stock. State Street Corp lifted its holdings in shares of Red Cat by 68.8% in the second quarter. State Street Corp now owns 12,091,447 shares of the company’s stock worth $128,774,000 after buying an additional 4,928,540 shares in the last quarter. BlackRock Inc. bought a new position in Red Cat in the 2nd quarter valued at $119,610,000. Van ECK Associates Corp purchased a new position in shares of Red Cat during the second quarter worth about $27,193,000. Renaissance Technologies LLC purchased a new position in shares of Red Cat during the first quarter worth about $18,533,000. Finally, AWM Investment Company Inc. bought a new position in shares of Red Cat in the second quarter worth approximately $9,313,000. 37.97% of the stock is currently owned by hedge funds and other institutional investors.

About Red Cat

Red Cat Holdings, Inc is a drone technology company that develops and supplies unmanned aircraft systems for defense, government, public safety and commercial applications. The company focuses on autonomous and remotely operated aerial systems designed to support intelligence, surveillance and reconnaissance missions, including operations in contested or GPS-denied environments.

Red Cat’s product portfolio includes the Teal 2 small unmanned aircraft system, a compact drone designed for close-range reconnaissance and situational awareness.