Red Cat (NASDAQ:RCAT) Stock Price Down 6.4% – What’s Next?

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s stock price was down 6.4% on Wednesday . The company traded as low as $8.11 and last traded at $8.13. 5,514,992 shares were traded during trading, a decline of 58% from the average daily volume of 13,190,999 shares. The stock had previously closed at $8.69.

Analyst Ratings Changes

RCAT has been the topic of several research reports. UBS Group started coverage on Red Cat in a report on Wednesday, May 27th. They issued a “buy” rating on the stock. Roth Capital initiated coverage on Red Cat in a research note on Monday, June 1st. They set a “buy” rating and a $25.00 price objective for the company. Evercore began coverage on Red Cat in a report on Monday, August 31st. They issued an “outperform” rating and a $15.00 target price on the stock. HC Wainwright reaffirmed 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 reaffirmed a “sell (d-)” rating on shares of Red Cat in a report on Friday, July 17th. Two investment analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $18.00.

Red Cat Stock Performance

The stock has a market cap of $983.76 million, a price-to-earnings ratio of -9.87 and a beta of 1.35. The business’s 50 day moving average is $8.80 and its 200 day moving average is $11.10.

Red Cat (NASDAQ:RCAT) last announced its earnings results 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). The firm had revenue of $20.20 million for the quarter, compared to analyst estimates of $22.65 million. Red Cat had a negative net margin of 136.26% and a negative return on equity of 32.25%. Research analysts expect that Red Cat Holdings, Inc. will post -0.77 earnings per share for the current year.

Insider Buying and Selling at Red Cat

In related news, Director Nicholas Liuzza, Jr. sold 55,000 shares of the stock in a transaction dated Tuesday, August 11th. The stock was sold at an average price of $10.63, for a total value of $584,650.00. Following the completion of the sale, the director directly owned 489,874 shares of the company’s stock, valued at approximately $5,207,360.62. This represents a 10.09% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Christopher Moe sold 20,000 shares of the firm’s stock in a transaction dated Tuesday, August 11th. The stock was sold at an average price of $10.51, for a total value of $210,200.00. Following 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 disclosure for this sale is available in the SEC filing. 12.50% of the stock is currently owned by insiders.

Institutional Trading of Red Cat

Institutional investors have recently made changes to their positions in the stock. Sei Investments Co. acquired a new stake in shares of Red Cat in the first quarter worth about $2,328,000. BlackRock Inc. acquired a new position in shares of Red Cat during the 2nd quarter valued at about $119,610,000. Janus Henderson Group PLC increased its holdings in shares of Red Cat by 733.7% during the 1st quarter. Janus Henderson Group PLC now owns 392,808 shares of the company’s stock valued at $5,141,000 after acquiring an additional 345,693 shares during the last quarter. EVR Research LP bought a new position in shares of Red Cat in the 4th quarter valued at approximately $1,705,000. Finally, Deutsche Bank AG acquired a new stake in Red Cat in the 2nd quarter worth approximately $1,270,000. 37.97% of the stock is currently owned by institutional investors and hedge funds.

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.