Red Cat (NASDAQ:RCAT) Trading Down 10.5% – Should You Sell?

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s share price was down 10.5% during mid-day trading on Thursday . The stock traded as low as $10.84 and last traded at $11.31. Approximately 10,956,859 shares were traded during mid-day trading, a decline of 29% from the average daily volume of 15,533,849 shares. The stock had previously closed at $12.63.

Analysts Set New Price Targets

A number of equities analysts recently commented on the stock. Needham & Company LLC boosted their price objective on shares of Red Cat from $12.00 to $16.00 and gave the stock a “buy” rating in a research note on Tuesday, January 13th. Northland Securities set a $22.00 target price on Red Cat in a research note on Tuesday, January 20th. LADENBURG THALM/SH SH raised shares of Red Cat to a “strong-buy” rating in a research report on Thursday, December 18th. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Red Cat in a research note on Thursday, January 22nd. Two analysts have rated the stock with a Strong Buy rating, one has issued a Buy rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Buy” and an average price target of $19.00.

Red Cat Trading Up 11.7%

The stock has a market capitalization of $1.51 billion, a price-to-earnings ratio of -28.70 and a beta of 1.50. The stock has a 50-day moving average price of $10.82 and a 200 day moving average price of $10.20.

Red Cat (NASDAQ:RCAT) last posted its quarterly earnings data on Thursday, November 13th. The company reported ($0.16) EPS for the quarter, missing the consensus estimate of ($0.07) by ($0.09). The business had revenue of $9.65 million during the quarter, compared to the consensus estimate of $8.18 million. Equities research analysts anticipate that Red Cat Holdings, Inc. will post -0.5 earnings per share for the current year.

Hedge Funds Weigh In On Red Cat

Several hedge funds have recently bought and sold shares of RCAT. IFP Advisors Inc grew its stake in shares of Red Cat by 181.1% in the third quarter. IFP Advisors Inc now owns 2,670 shares of the company’s stock worth $28,000 after acquiring an additional 1,720 shares in the last quarter. Montag A & Associates Inc. increased its stake in Red Cat by 552.0% in the third quarter. Montag A & Associates Inc. now owns 3,260 shares of the company’s stock valued at $34,000 after purchasing an additional 2,760 shares during the last quarter. Bank of America Corp DE raised its stake in Red Cat by 407.0% during the 4th quarter. Bank of America Corp DE now owns 3,397 shares of the company’s stock worth $44,000 after acquiring an additional 2,727 shares in the last quarter. Global Retirement Partners LLC acquired a new position in Red Cat during the third quarter worth approximately $36,000. Finally, Penserra Capital Management LLC acquired a new stake in shares of Red Cat during the third quarter worth about $46,000. Institutional investors and hedge funds own 37.97% of the company’s stock.

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.