Red Cat (NASDAQ:RCAT) Trading Down 7.1% Following Insider Selling

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s stock price dropped 7.1% during trading on Tuesday after an insider sold shares in the company. The stock traded as low as $11.40 and last traded at $11.1160. Approximately 1,527,609 shares changed hands during mid-day trading, a decline of 90% from the average daily volume of 15,237,435 shares. The stock had previously closed at $11.97.

Specifically, Director Paul Funk II sold 165,028 shares of Red Cat stock in a transaction on Thursday, June 11th. The shares were sold at an average price of $11.50, for a total value of $1,897,822.00. The transaction was disclosed in a document filed with the SEC, which is available through this link.

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on the company. Needham & Company LLC increased their price target on Red Cat from $16.00 to $20.00 and gave the stock a “buy” rating in a report on Thursday, March 19th. HC Wainwright began coverage on shares of Red Cat in a report on Wednesday, May 27th. They issued a “buy” rating and a $20.00 target price on the stock. Clear Str raised shares of Red Cat to a “strong-buy” rating in a report on Wednesday, April 29th. Weiss Ratings restated a “sell (d-)” rating on shares of Red Cat in a research note on Tuesday, April 21st. Finally, LADENBURG THALM/SH SH upgraded Red Cat to a “strong-buy” rating in a report on Wednesday, May 6th. Two equities research analysts have rated the stock with a Strong Buy rating, four have issued a Buy rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Buy” and a consensus target price of $21.40.

Red Cat Trading Down 7.8%

The stock has a market capitalization of $1.35 billion, a P/E ratio of -15.76 and a beta of 1.23. The company’s 50-day moving average is $11.73 and its two-hundred day moving average is $11.87.

Red Cat (NASDAQ:RCAT) last issued its quarterly earnings data on Thursday, May 7th. The company reported ($0.22) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.12) by ($0.10). Red Cat had a negative return on equity of 35.86% and a negative net margin of 138.36%.The business had revenue of $15.47 million for the quarter, compared to analyst estimates of $17.63 million. The company’s revenue was up 849.1% compared to the same quarter last year. Sell-side analysts expect that Red Cat Holdings, Inc. will post -0.68 EPS for the current fiscal year.

Institutional Investors Weigh In On Red Cat

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Norris Financial Group LLC acquired a new position in Red Cat during the 1st quarter valued at about $194,000. Western Wealth Management LLC raised its holdings in Red Cat by 4.5% during the first quarter. Western Wealth Management LLC now owns 36,722 shares of the company’s stock worth $481,000 after purchasing an additional 1,570 shares in the last quarter. Bank of America Corp DE lifted its position in Red Cat by 46.1% in the first quarter. Bank of America Corp DE now owns 203,366 shares of the company’s stock worth $2,662,000 after purchasing an additional 64,145 shares during the period. Janus Henderson Group PLC boosted its stake in 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 purchasing an additional 345,693 shares in the last quarter. Finally, Amundi acquired a new position in shares of Red Cat during the 1st quarter valued at $135,000. 37.97% of the stock is currently owned by institutional investors.

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.