Red Cat (NASDAQ:RCAT) Shares Gap Down – Here’s What Happened

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s stock price gapped down before the market opened on Wednesday . The stock had previously closed at $11.03, but opened at $9.44. Red Cat shares last traded at $9.2070, with a volume of 7,709,423 shares changing hands.

Analysts Set New Price Targets

RCAT has been the subject of several research reports. Needham & Company LLC raised their price objective on shares of Red Cat from $16.00 to $20.00 and gave the company a “buy” rating in a research report on Thursday, March 19th. LADENBURG THALM/SH SH upgraded shares of Red Cat to a “strong-buy” rating in a research report on Wednesday, May 6th. Clear Str upgraded shares of Red Cat to a “strong-buy” rating in a research report on Wednesday, April 29th. Weiss Ratings restated a “sell (d-)” rating on shares of Red Cat in a research report on Tuesday, April 21st. Finally, Northland Securities set a $22.00 price objective on shares of Red Cat in a research report on Tuesday, January 20th. Two research analysts have rated the stock with a Strong Buy rating, one has given a Buy rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Buy” and an average price target of $20.67.

Red Cat Price Performance

The firm’s fifty day simple moving average is $13.12 and its 200 day simple moving average is $11.43. The company has a market capitalization of $1.20 billion, a price-to-earnings ratio of -13.91 and a beta of 1.21.

Red Cat (NASDAQ:RCAT) last announced its earnings results on Thursday, May 7th. The company reported ($0.22) 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 firm had revenue of $15.47 million during the quarter, compared to analyst estimates of $17.63 million. The company’s revenue for the quarter was up 849.1% compared to the same quarter last year. Equities research analysts forecast that Red Cat Holdings, Inc. will post -0.65 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in RCAT. State Street Corp boosted its holdings in shares of Red Cat by 136.4% in the fourth quarter. State Street Corp now owns 6,612,153 shares of the company’s stock worth $52,434,000 after buying an additional 3,815,310 shares during the period. Brevan Howard Capital Management LP acquired a new position in shares of Red Cat in the third quarter worth about $19,739,000. Vanguard Group Inc. lifted its position in shares of Red Cat by 43.9% in the third quarter. Vanguard Group Inc. now owns 5,506,377 shares of the company’s stock worth $56,991,000 after purchasing an additional 1,680,929 shares in the last quarter. Davidson Kempner Capital Management LP purchased a new stake in shares of Red Cat in the third quarter worth approximately $17,286,000. Finally, Renaissance Technologies LLC purchased a new stake in shares of Red Cat in the first quarter worth approximately $18,533,000. 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.