Red Cat (NASDAQ:RCAT) Stock Price Down 9.1% – Here’s Why

Red Cat Holdings, Inc. (NASDAQ:RCAT) fell 9.1% during mid-day trading on Wednesday . The stock traded as low as $6.71 and last traded at $6.77. Approximately 7,582,651 shares changed hands during trading, a decline of 47% from the average daily volume of 14,177,857 shares. The stock had previously closed at $7.45.

Wall Street Analyst Weigh In

Several research analysts have weighed in on RCAT shares. HC Wainwright began coverage on shares of Red Cat in a research report on Wednesday, May 27th. They issued a “buy” rating and a $20.00 price target on the stock. Wall Street Zen lowered Red Cat from a “sell” rating to a “strong sell” rating in a research note on Saturday, July 18th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Red Cat in a research report on Friday, July 17th. Roth Capital began coverage on Red Cat in a report on Monday, June 1st. They set a “buy” rating and a $25.00 price target for the company. Finally, LADENBURG THALM/SH SH upgraded Red Cat to a “strong-buy” rating in a research report on Wednesday, May 6th. Two analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, Red Cat presently has an average rating of “Buy” and an average target price of $21.40.

Red Cat Stock Up 2.1%

The stock has a fifty day simple moving average of $10.22 and a 200 day simple moving average of $12.02. The firm has a market capitalization of $924.86 million, a P/E ratio of -10.75 and a beta of 1.29.

Red Cat (NASDAQ:RCAT) last released 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 return on equity of 35.86% and a negative net margin of 138.36%.The business had revenue of $15.47 million during the quarter, compared to the consensus estimate of $17.63 million. The firm’s revenue for the quarter was up 849.1% compared to the same quarter last year. Research analysts anticipate that Red Cat Holdings, Inc. will post -0.68 earnings per share for the current fiscal year.

Insider Activity at Red Cat

In other news, Director Paul Funk II sold 165,028 shares of the firm’s stock in a transaction dated Thursday, June 11th. The stock was sold at an average price of $11.50, for a total transaction of $1,897,822.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. 12.50% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. State Street Corp increased its position in 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 purchasing an additional 3,815,310 shares during the last quarter. Vanguard Group Inc. grew its stake in shares of Red Cat by 43.9% in the 3rd quarter. Vanguard Group Inc. now owns 5,506,377 shares of the company’s stock worth $56,991,000 after buying an additional 1,680,929 shares in the last quarter. Davidson Kempner Capital Management LP purchased a new position in shares of Red Cat in the 3rd quarter worth $17,286,000. Renaissance Technologies LLC bought a new stake in shares of Red Cat in the 1st quarter worth about $18,533,000. Finally, CenterBook Partners LP increased its holdings in shares of Red Cat by 1,872.4% in the 4th quarter. CenterBook Partners LP now owns 1,105,132 shares of the company’s stock worth $8,764,000 after buying an additional 1,049,101 shares during the last quarter. 37.97% of the stock is currently owned by 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.