Red Cat (NASDAQ:RCAT) Trading Down 9.4% – Time to Sell?

Red Cat Holdings, Inc. (NASDAQ:RCAT) dropped 9.4% on Friday . The stock traded as low as $12.59 and last traded at $12.68. Approximately 11,394,906 shares traded hands during mid-day trading, a decline of 32% from the average daily volume of 16,722,244 shares. The stock had previously closed at $14.00.

Analyst Ratings Changes

Several equities analysts have recently issued reports on the stock. Needham & Company LLC boosted their price target on shares of Red Cat from $16.00 to $20.00 and gave the company a “buy” rating in a report on Thursday, March 19th. LADENBURG THALM/SH SH increased their price objective on shares of Red Cat from $15.00 to $20.00 and gave the stock a “buy” rating in a report on Tuesday, March 3rd. Northland Securities set a $22.00 price objective on shares of Red Cat in a research report on Tuesday, January 20th. Weiss Ratings reissued a “sell (d-)” rating on shares of Red Cat in a research note on Thursday, January 22nd. Finally, Wall Street Zen upgraded shares of Red Cat from a “sell” rating to a “hold” rating in a research report on Saturday, March 21st. Two analysts have rated the stock with a Buy rating and one has given a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus target price of $20.67.

Red Cat Stock Performance

The firm has a 50 day simple moving average of $14.07 and a two-hundred day simple moving average of $11.34. The stock has a market cap of $1.54 billion, a P/E ratio of -16.91 and a beta of 1.53.

Red Cat (NASDAQ:RCAT) last released its quarterly 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). Red Cat had a negative return on equity of 38.86% and a negative net margin of 176.96%.The business had revenue of $26.24 million during the quarter, compared to the consensus estimate of $24.50 million. As a group, equities research analysts predict that Red Cat Holdings, Inc. will post -0.5 EPS for the current year.

Hedge Funds Weigh In On Red Cat

Several large investors have recently bought and sold shares of RCAT. Brevan Howard Capital Management LP acquired a new position in shares of Red Cat during the third quarter valued at approximately $19,739,000. Rockefeller Capital Management L.P. acquired a new stake in Red Cat in the second quarter worth approximately $546,000. Tudor Investment Corp ET AL lifted its position in Red Cat by 214.0% in the third quarter. Tudor Investment Corp ET AL now owns 1,277,523 shares of the company’s stock worth $13,222,000 after purchasing an additional 870,612 shares during the period. AWM Investment Company Inc. boosted its stake in Red Cat by 15.3% during the 2nd quarter. AWM Investment Company Inc. now owns 2,037,616 shares of the company’s stock valued at $14,834,000 after purchasing an additional 269,942 shares in the last quarter. Finally, Kornitzer Capital Management Inc. KS bought a new position in Red Cat during the 3rd quarter valued at $880,000. Institutional investors and hedge funds 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.