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

Red Cat Holdings, Inc. (NASDAQ:RCAT) gapped down before the market opened on Friday . The stock had previously closed at $14.15, but opened at $13.56. Red Cat shares last traded at $12.8560, with a volume of 9,234,788 shares trading hands.

Key Headlines Impacting Red Cat

Here are the key news stories impacting Red Cat this week:

• Positive Sentiment: Reports that the U.S. government may direct funding toward domestic drone makers have boosted drone stocks broadly, including Red Cat. Trump Invested in Intel And it Soared 500%. Here’s the Next Industry the Government is Buying.
• Positive Sentiment: Red Cat’s Blue Ops division announced full-rate production of its U.S.-built Variant 7 uncrewed surface vessel, signaling progress in its defense and maritime autonomy business. Blue Ops Ramps into Full-Rate Production of U.S.-Built Variant 7, Advancing Red Cat’s Autonomy Stack Across Air, Land and Sea
• Positive Sentiment: Wall Street sentiment remains constructive, with HC Wainwright reiterating a Buy rating and a $20 price target, implying further upside from recent levels. A Look At Red Cat Holdings (RCAT) Valuation After Defense Contracts And Blue Ops Production Ramp News
• Neutral Sentiment: Heavy call-option buying and elevated trading volume suggest speculative interest is rising, which can amplify moves but also increase volatility. Traders Buy Large Volume of Call Options on Red Cat (NASDAQ:RCAT)
• Neutral Sentiment: Analysts at HC Wainwright issued multiple earnings forecasts showing near-term losses but longer-term improvement, reinforcing the story that investors are betting on future growth rather than current profitability. A Look At Red Cat Holdings (RCAT) Valuation After Defense Contracts And Blue Ops Production Ramp News

Wall Street Analyst Weigh In

RCAT has been the subject of several recent research reports. Wall Street Zen lowered shares of Red Cat from a “hold” rating to a “sell” rating in a research note on Saturday, May 2nd. HC Wainwright began coverage on Red Cat in a research report on Wednesday. They issued a “buy” rating and a $20.00 target price for the company. UBS Group assumed coverage on Red Cat in a research report on Wednesday. They issued a “buy” rating for the company. Weiss Ratings reissued a “sell (d-)” rating on shares of Red Cat in a research report on Tuesday, April 21st. Finally, LADENBURG THALM/SH SH raised shares of Red Cat to a “strong-buy” rating in a research report on Wednesday, May 6th. Two research analysts have rated the stock with a Strong Buy rating, three have assigned a Buy rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Buy” and an average price target of $20.50.

Red Cat Stock Performance

The firm’s 50 day moving average is $12.00 and its 200-day moving average is $11.40. The firm has a market cap of $1.71 billion, a price-to-earnings ratio of -19.47 and a beta of 1.21.

Red Cat (NASDAQ:RCAT) last issued its quarterly earnings data on Thursday, May 7th. The company reported ($0.22) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.12) by ($0.10). Red Cat had a negative net margin of 138.36% and a negative return on equity of 35.86%. The company had revenue of $15.47 million during the quarter, compared to the consensus estimate of $17.63 million. Red Cat’s revenue for the quarter was up 849.1% on a year-over-year basis. As a group, research analysts predict that Red Cat Holdings, Inc. will post -0.65 EPS for the current year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of RCAT. IFP Advisors Inc grew its stake in Red Cat by 181.1% in 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 during the last quarter. Fifth Third Bancorp acquired a new position in Red Cat in the 1st quarter valued at $33,000. Montag A & Associates Inc. grew its stake in Red Cat by 552.0% in the 3rd quarter. Montag A & Associates Inc. now owns 3,260 shares of the company’s stock valued at $34,000 after buying an additional 2,760 shares during the last quarter. California State Teachers Retirement System acquired a new position in Red Cat in the 2nd quarter valued at $34,000. Finally, NFSG Corp boosted its stake in Red Cat by 200.0% during the 1st quarter. NFSG Corp now owns 3,000 shares of the company’s stock valued at $39,000 after purchasing an additional 2,000 shares during the period. 37.97% of the stock is currently owned by institutional investors and hedge funds.

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.