Red Cat (NASDAQ:RCAT) Trading Down 2.2% – Time to Sell?

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) traded down 2.2% during trading on Tuesday . The stock traded as low as $9.80 and last traded at $10.21. Approximately 9,050,213 shares traded hands during trading, a decline of 35% from the average session volume of 13,877,871 shares. The stock had previously closed at $10.44.

Analyst Upgrades and Downgrades

RCAT has been the topic of several research reports. Needham & Company LLC dropped their price objective on shares of Red Cat from $20.00 to $15.00 and set a “buy” rating on the stock in a research note on Friday, August 7th. Wall Street Zen lowered shares of Red Cat from a “sell” rating to a “strong sell” rating in a research note on Saturday, July 18th. Roth Capital began coverage on shares of Red Cat in a report on Monday, June 1st. They set a “buy” rating and a $25.00 price target on the stock. UBS Group initiated coverage on shares of Red Cat in a research note on Wednesday, May 27th. They issued a “buy” rating on the stock. Finally, Clear Str upgraded Red Cat to a “strong-buy” rating in a report on Wednesday, April 29th. Two equities research analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Buy” and a consensus price target of $20.40.

Red Cat Trading Down 2.3%

The firm has a market capitalization of $1.25 billion, a price-to-earnings ratio of -12.59 and a beta of 1.32. The company has a fifty day moving average price of $9.47 and a 200-day moving average price of $11.60.

Red Cat (NASDAQ:RCAT) last released its quarterly earnings data on Thursday, August 6th. The company reported ($0.26) EPS for the quarter, missing analysts’ consensus estimates of ($0.21) by ($0.05). The firm had revenue of $20.20 million during the quarter, compared to analyst estimates of $22.65 million. Red Cat had a negative return on equity of 32.25% and a negative net margin of 136.26%. As a group, sell-side analysts predict that Red Cat Holdings, Inc. will post -0.78 EPS for the current fiscal year.

Insiders Place Their Bets

In other Red Cat news, Director Nicholas Reyland Liuzza, Jr. sold 55,000 shares of the business’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 value of $584,650.00. Following the completion of the sale, the director directly owned 489,874 shares of the company’s stock, valued at $5,207,360.62. The trade was a 10.09% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Christopher R. Moe sold 20,000 shares of the stock in a transaction on Tuesday, August 11th. The stock was sold at an average price of $10.51, for a total transaction of $210,200.00. Following the transaction, the director owned 200,502 shares in the company, valued at approximately $2,107,276.02. This trade represents a 9.07% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 240,028 shares of company stock valued at $2,692,672 over the last ninety days. Corporate insiders own 12.50% of the company’s stock.

Hedge Funds Weigh In On Red Cat

Several hedge funds have recently bought and sold shares of RCAT. Fifth Third Bancorp bought a new position in Red Cat during the first quarter valued at about $33,000. Allworth Financial LP bought a new stake in shares of Red Cat during the 2nd quarter worth about $28,000. IFP Advisors Inc boosted its stake in shares of Red Cat by 181.1% during the 3rd quarter. IFP Advisors Inc now owns 2,670 shares of the company’s stock worth $28,000 after acquiring an additional 1,720 shares in the last quarter. NFSG Corp increased its holdings in shares of 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 acquiring an additional 2,000 shares during the last quarter. Finally, PNC Financial Services Group Inc. increased its holdings in shares of Red Cat by 294.6% during the 1st quarter. PNC Financial Services Group Inc. now owns 3,042 shares of the company’s stock valued at $40,000 after acquiring an additional 2,271 shares during the last quarter. 37.97% of the stock is 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.