Red Cat (NASDAQ:RCAT) Shares Down 9% – Here’s What Happened

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s share price was down 9% during trading on Wednesday . The stock traded as low as $13.58 and last traded at $13.61. Approximately 8,284,915 shares traded hands during mid-day trading, a decline of 46% from the average daily volume of 15,434,657 shares. The stock had previously closed at $14.95.

Analysts Set New Price Targets

Several equities analysts have recently commented on RCAT shares. LADENBURG THALM/SH SH raised Red Cat to a “strong-buy” rating in a research report on Wednesday, May 6th. Needham & Company LLC upped their price target on shares of Red Cat from $16.00 to $20.00 and gave the company a “buy” rating in a research note on Thursday, March 19th. Roth Mkm initiated coverage on shares of Red Cat in a research note on Monday. They issued a “buy” rating and a $25.00 price target on the stock. HC Wainwright initiated coverage on shares of Red Cat in a research note on Wednesday, May 27th. They issued a “buy” rating and a $20.00 price target on the stock. Finally, Clear Str upgraded shares of Red Cat to a “strong-buy” rating in a research note on Wednesday, April 29th. 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. Based on data from MarketBeat, Red Cat presently has an average rating of “Buy” and an average price target of $21.40.

Red Cat Stock Performance

The company has a market cap of $1.67 billion, a price-to-earnings ratio of -19.41 and a beta of 1.23. The company has a fifty day moving average of $11.94 and a two-hundred day moving average of $11.48.

Red Cat (NASDAQ:RCAT) last released its quarterly earnings data on Thursday, May 7th. The company reported ($0.22) earnings per share for the quarter, missing the consensus estimate of ($0.12) by ($0.10). Red Cat had a negative net margin of 138.36% and a negative return on equity of 35.86%. The firm had revenue of $15.47 million for the quarter, compared to analyst estimates of $17.63 million. Red Cat’s revenue for the quarter was up 849.1% on a year-over-year basis. Equities analysts expect that Red Cat Holdings, Inc. will post -0.69 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in RCAT. IFP Advisors Inc raised its stake in 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 buying an additional 1,720 shares during the period. Fifth Third Bancorp bought a new stake in shares of Red Cat during the first quarter worth about $33,000. Montag A & Associates Inc. increased its holdings in Red Cat by 552.0% during the 3rd quarter. Montag A & Associates Inc. now owns 3,260 shares of the company’s stock worth $34,000 after purchasing an additional 2,760 shares in the last quarter. California State Teachers Retirement System bought a new stake in Red Cat during the 2nd quarter worth approximately $34,000. Finally, NFSG Corp increased its holdings in Red Cat by 200.0% during the 1st quarter. NFSG Corp now owns 3,000 shares of the company’s stock worth $39,000 after purchasing an additional 2,000 shares in the last quarter. 37.97% of the stock is owned by institutional investors and hedge funds.

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.