Red Cat (NASDAQ:RCAT) Trading Down 11.8% – Here’s What Happened

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) dropped 11.8% during mid-day trading on Thursday . The company traded as low as $13.88 and last traded at $14.00. Approximately 13,210,474 shares traded hands during trading, a decline of 21% from the average daily volume of 16,811,686 shares. The stock had previously closed at $15.87.

Wall Street Analysts Forecast Growth

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

Red Cat Price Performance

The stock has a market capitalization of $1.54 billion, a price-to-earnings ratio of -16.91 and a beta of 1.53. The stock has a 50 day moving average price of $14.05 and a 200-day moving average price of $11.37.

Red Cat (NASDAQ:RCAT) last posted its quarterly earnings data on Wednesday, March 18th. The company reported ($0.17) EPS for the quarter, missing the consensus estimate of ($0.14) by ($0.03). The firm had revenue of $26.24 million during the quarter, compared to analyst estimates of $24.50 million. Red Cat had a negative net margin of 176.96% and a negative return on equity of 38.86%. As a group, research analysts forecast that Red Cat Holdings, Inc. will post -0.5 earnings per share for the current year.

Hedge Funds Weigh In On Red Cat

Hedge funds and other institutional investors have recently modified their holdings of the business. Arizona State Retirement System grew its stake in Red Cat by 3.0% during the 4th quarter. Arizona State Retirement System now owns 29,311 shares of the company’s stock valued at $232,000 after acquiring an additional 855 shares in the last quarter. VestGen Advisors LLC boosted its holdings in shares of Red Cat by 4.9% during the 2nd quarter. VestGen Advisors LLC now owns 23,625 shares of the company’s stock worth $172,000 after purchasing an additional 1,097 shares during the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. grew its position in shares of Red Cat by 0.7% in the fourth quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 167,084 shares of the company’s stock valued at $1,325,000 after purchasing an additional 1,147 shares in the last quarter. Advisory Services Network LLC grew its position in shares of Red Cat by 5.3% in the third quarter. Advisory Services Network LLC now owns 30,200 shares of the company’s stock valued at $313,000 after purchasing an additional 1,507 shares in the last quarter. Finally, AlphaQuest LLC increased its holdings in shares of Red Cat by 17.4% in the third quarter. AlphaQuest LLC now owns 10,839 shares of the company’s stock valued at $112,000 after purchasing an additional 1,608 shares during the last quarter. 37.97% of the stock is owned by hedge funds and other institutional investors.

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.