Red Cat (NASDAQ:RCAT) Trading Down 1.3% – Here’s Why

Red Cat Holdings, Inc. (NASDAQ:RCAT) shares dropped 1.3% during mid-day trading on Wednesday . The company traded as low as $15.12 and last traded at $15.87. Approximately 18,832,591 shares changed hands during trading, an increase of 12% from the average daily volume of 16,873,734 shares. The stock had previously closed at $16.08.

Analysts Set New Price Targets

Several analysts recently weighed in on RCAT shares. Needham & Company LLC lifted their price objective on Red Cat from $16.00 to $20.00 and gave the company a “buy” rating in a report on Thursday, March 19th. Northland Securities set a $22.00 target price on shares of Red Cat in a research report on Tuesday, January 20th. LADENBURG THALM/SH SH boosted their price target on shares of Red Cat from $15.00 to $20.00 and gave the company a “buy” rating in a report on Tuesday, March 3rd. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Red Cat in a research report on Thursday, January 22nd. Finally, Wall Street Zen raised shares of Red Cat from a “sell” rating to a “hold” rating in a report on Saturday. Two equities research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Hold” and an average price target of $20.67.

Red Cat Trading Down 1.3%

The stock has a market capitalization of $1.92 billion, a P/E ratio of -21.16 and a beta of 1.53. The company has a 50-day moving average price of $14.02 and a 200 day moving average price of $11.29.

Red Cat (NASDAQ:RCAT) last posted its earnings results on Wednesday, March 18th. The company reported ($0.17) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.14) by ($0.03). The company had revenue of $26.24 million during the quarter, compared to analysts’ expectations of $24.50 million. Red Cat had a negative net margin of 176.96% and a negative return on equity of 38.86%. As a group, research analysts expect that Red Cat Holdings, Inc. will post -0.5 earnings per share for the current year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of RCAT. Caitong International Asset Management Co. Ltd raised its stake in shares of Red Cat by 1,825.1% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 54,152 shares of the company’s stock worth $429,000 after acquiring an additional 51,339 shares in the last quarter. Virtu Financial LLC acquired a new stake in Red Cat in the fourth quarter valued at approximately $196,000. Invesco Ltd. grew its holdings in Red Cat by 36.3% in the fourth quarter. Invesco Ltd. now owns 237,038 shares of the company’s stock worth $1,880,000 after purchasing an additional 63,098 shares during the last quarter. Vident Advisory LLC purchased a new position in Red Cat in the fourth quarter worth $1,009,000. Finally, Janus Henderson Group PLC increased its position in shares of Red Cat by 29.5% during the fourth quarter. Janus Henderson Group PLC now owns 47,115 shares of the company’s stock worth $374,000 after purchasing an additional 10,723 shares in the last quarter. Hedge funds and other institutional investors own 37.97% of the company’s stock.

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.