Red Cat (NASDAQ:RCAT) Trading Down 1.5% – What’s Next?

Red Cat Holdings, Inc. (NASDAQ:RCAT)’s share price was down 1.5% during trading on Friday . The stock traded as low as $7.93 and last traded at $7.96. 5,256,376 shares traded hands during trading, a decline of 60% from the average session volume of 13,100,832 shares. The stock had previously closed at $8.08.

Analyst Upgrades and Downgrades

RCAT has been the topic of several recent research reports. Evercore assumed coverage on shares of Red Cat in a report on Monday, August 31st. They set an “outperform” rating and a $15.00 target price on the stock. Weiss Ratings restated a “sell (d-)” rating on shares of Red Cat in a report on Friday, July 17th. Roth Capital initiated coverage on shares of Red Cat in a research report on Monday, June 1st. They issued a “buy” rating and a $25.00 price target for the company. Piper Sandler started coverage on shares of Red Cat in a research note on Wednesday, September 2nd. They set a “neutral” rating and a $9.00 price objective on the stock. Finally, Needham & Company LLC cut their price objective on shares of Red Cat from $20.00 to $15.00 and set a “buy” rating on the stock in a report on Friday, August 7th. Two research analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating, one has given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $18.00.

Red Cat Price Performance

The firm has a market capitalization of $975.78 million, a P/E ratio of -9.81 and a beta of 1.35. The stock’s fifty day simple moving average is $8.80 and its 200 day simple moving average is $11.10.

Red Cat (NASDAQ:RCAT) last released its quarterly earnings results on Thursday, August 6th. The company reported ($0.26) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.21) by ($0.05). Red Cat had a negative net margin of 136.26% and a negative return on equity of 32.25%. The firm had revenue of $20.20 million during the quarter, compared to the consensus estimate of $22.65 million. As a group, sell-side analysts forecast that Red Cat Holdings, Inc. will post -0.77 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Director Christopher Moe sold 20,000 shares of the stock in a transaction that occurred on Tuesday, August 11th. The shares were sold at an average price of $10.51, for a total transaction of $210,200.00. Following the completion of the sale, the director owned 200,502 shares of the company’s stock, valued at $2,107,276.02. This represents a 9.07% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Nicholas Liuzza, Jr. sold 55,000 shares of the firm’s stock in a transaction that occurred on Tuesday, August 11th. The shares were sold at an average price of $10.63, for a total transaction of $584,650.00. Following the completion of the sale, the director owned 489,874 shares of the company’s stock, valued at approximately $5,207,360.62. This trade represents a 10.09% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Corporate insiders own 12.50% of the company’s stock.

Institutional Trading of Red Cat

A number of institutional investors have recently made changes to their positions in the business. Allworth Financial LP acquired a new stake in shares of Red Cat in the 2nd quarter worth $28,000. IFP Advisors Inc increased its position in Red Cat by 181.1% during the 3rd quarter. IFP Advisors Inc now owns 2,670 shares of the company’s stock valued at $28,000 after buying an additional 1,720 shares in the last quarter. Fifth Third Bancorp acquired a new position in Red Cat during the 1st quarter valued at about $33,000. California State Teachers Retirement System purchased a new stake in Red Cat in the second quarter valued at about $34,000. Finally, NFSG Corp raised its stake in Red Cat by 200.0% in the first quarter. NFSG Corp now owns 3,000 shares of the company’s stock valued at $39,000 after buying an additional 2,000 shares during the last quarter. 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.